By Benadeta Mwaura - Reporter
Kenya, June 11, 2026 - Kenya’s 2026/27 Budget Statement has placed strong emphasis on industrialisation, national security, and social protection as part of the government’s broader Bottom-Up Economic Transformation Agenda (BETA), with Treasury highlighting job creation, stability, and inclusion as core pillars of fiscal planning.
Presenting the budget in Parliament, Treasury Cabinet Secretary John Mbadi said manufacturing remains central to Kenya’s structural transformation agenda.
“Mr. Speaker, manufacturing is a linchpin for structural transformation. We will therefore continue to strengthen local value chains, deepen backward and forward linkages and enhance competitiveness in domestic and export markets,” Mbadi said.
Manufacturing and Industrial Growth Push#
The government has proposed KSh 16.7 billion to support manufacturing initiatives aimed at expanding industrial capacity and strengthening value chains.
Key allocations include KSh 2.6 billion for County Integrated Agro-Industrial Parks, KSh 5.4 billion for the Supporting Access to Finance and Enterprise Recovery (SAFER) Project, and KSh 2.4 billion for Kenya Jobs and Economic Transformation initiatives.
Other investments include funding for textile hubs in Athi River and Naivasha, Export Processing Zones, and special economic zones aimed at deepening industrial clustering and boosting export competitiveness.
Mbadi said the interventions are designed to strengthen value addition and create employment opportunities, particularly for young people entering the labour market.
The budget also includes targeted interventions to stabilise key agricultural-industrial sectors, particularly coffee and sugar.
Allocations include KSh 500 million for the Coffee Cherry Revolving Fund, KSh 2.0 billion for coffee debt waivers, and KSh 2.7 billion for sugar sector reforms.
These measures are intended to support farmers, stabilise incomes, and protect livelihoods within critical value chains.
Security as a Foundation for Investment#
The government underscored the importance of security in sustaining economic growth and attracting investment, allocating substantial resources to defence and internal security agencies.
“Mr. Speaker, a safe and stable environment is indispensable for investment, trade, and economic growth,” Mbadi said.
Security allocations include KSh 252.1 billion for Defence, KSh 144.7 billion for the National Police Service, KSh 64.1 billion for the National Intelligence Service, and KSh 63.9 billion for Internal Security and National Administration.
Additional funding has been set aside for police modernization, leasing of police vehicles, and development of forensic infrastructure.
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The government also proposed KSh 3.9 billion for stipends to village elders, recognising their role in supporting local administration and community-level conflict resolution.
Expanding Social Protection for Vulnerable Groups#
Social safety nets were also a major feature of the budget, with the government allocating KSh 41.8 billion to protect vulnerable populations.
“Social safety nets remain central to BETA’s objective of poverty reduction and inclusive growth,” Mbadi said.
Key programmes include KSh 24.6 billion for elderly cash transfers, KSh 8.9 billion for orphans and vulnerable children, and KSh 1.5 billion for persons living with severe disabilities.
Additional funding has been allocated to hunger safety nets, disability support programmes, and child welfare initiatives, aimed at cushioning low-income households and improving basic consumption.
Youth, Women, and Equity Programmes#
The government has also expanded funding for youth empowerment and gender inclusion programmes, allocating KSh 110.2 billion to targeted initiatives across the country.
These include KSh 12.5 billion for the National Youth Service, KSh 4.9 billion for the NYOTA programme, and KSh 1.6 billion for youth employment support initiatives.
Mbadi said the focus is on equipping young people with skills, expanding entrepreneurship opportunities, and supporting creative industries.
For women’s empowerment, allocations include KSh 402 million for the Women Enterprise Fund and KSh 4.9 billion for the National Government Affirmative Action Fund.
He said these interventions aim to strengthen economic participation and enhance inclusion in decision-making and enterprise development.
Regional Equity and Devolution Funding#
To promote balanced development across the country, the budget also provides KSh 61.8 billion for the National Government Constituency Development Fund, KSh 10.3 billion for the Equalization Fund, and additional support for devolved development structures.
Mbadi said these allocations are intended to reduce regional disparities and ensure equitable access to development resources.