Stung by Gen Z protests that led to rejection of the 2024/25 Finance Bill, the National Treasury has unveiled plans to engage the public on Budget Policy Statement (BPS) for the 2026/27 fiscal year.
As they do so, the Treasury is well aware that any suggestion of higher taxation could reignite the Gen Z demonstrations that almost brought down the government.
BPS is a government policy document that outlines the broad strategic priorities and policy goals to guide the national and county governments in preparing their budgets for the subsequent financial year and over the medium term.
Protesters picketing along Kimathi Street in Nairobi during the commemoration of the Gen-Z protests on June 25th 2025.
Photo credit: Billy Ogada | Nation Media Group
In a deliberate move aimed at forestalling protests and involving the public in preparation of the next budget from the outset, National Treasury Cabinet Secretary John Mbadi has announced that he will personally consult with the public across the country to gather their views on the upcoming budget.
He told the National Assembly Committee on Finance and National Planning that he would use the former eight provinces to inform the public about the 2026/27 BPS and the planned sale of government shares in Safaricom.
The plan is set to start this weekend, with the first consultative forum taking place in Migori County in Nyanza, the CS told the lawmakers.
Thereafter, Kakamega will host the next public engagement, covering the former Western Province, before it moves to Eldoret for the North Rift, and to Nakuru for the South Rift, covering the former Rift Valley Province.
The public engagement for Central will be held in Kiambu, while residents of North Eastern will converge in Garissa to discuss matters concerning the next budget with the CS.
Kilifi will host the forum on behalf of the former Coast Province, after which it will move to Meru and Kitui, covering both the Lower and Upper Eastern Regions, as well as the former Eastern Province.
“I will personally engage the people on BPS and the National Infrastructure Fund using the former eight provinces,” Mr Mbadi said.
Mr Mbadi said communication, especially to the members of the public who are directly affected by the budget is key in government success.
“This country is very interesting, last year, some Kenyans created for me a finance Bill that didn’t even exist, today they are saying things about this Safaricom sale that does not exist. It is my duty to engage them and clarify any questions they may have,” Mr Mbadi said.
Mr Mbadi wants to build on the public trust he received when the current budget for the financial year 2025/26 did not face opposition from the public due to proper communication.
“When people are engaged on what they want and what they should expect, you clear the misinformation and doubts that normally surround the Finance Bill,” Mr Mbadi said.
Mr Mbadi said the protests witnessed in 2024 provided the government with an opportunity to reflect and make significant changes to how it engages citizens in the budget-making process.
This is because one of the key concerns raised during the 2024 protests was the lack of public involvement, transparency, and openness in how the budget and the Finance Bill were developed.
In a move aimed at targeting the young people, last month, Mr Mbadi launched the National Students Budget Forum, marking a decisive shift towards a more inclusive and participatory budget-making process.
The much publicised launch at the Kenya School of Monetary Studies for the FY 2026/27 budget cycle provides a structured platform for students to contribute to fiscal policy discussions.
Mr Mbadi said the engagements are intended to ensure that the perspectives of young people are systematically incorporated into the budget formulation process.
The Cabinet Secretary for the National Treasury and Economic Planning John Mbadi (left), with Molo Member of Parliament Kimani Kuria,who is the chairperson of the National Assembly’s Departmental Committee on Finance and National Planning, engage after a joint sitting to deliberate on the proposed partial divestiture of the government’s shareholding in Safaricom PLC, at Glee Hotel, Nairobi, on January 13, 2026.
Photo credit: Bonface Bogita | Nation Media Group
“The future of our economy belongs to the young people of this country. Their voices must therefore be heard not as an afterthought, but as an integral part of our fiscal planning and policy choices,” Mr Mbadi said.
According to the draft Budget Policy Statement published by Treasury, the government seeks to deepen tax policy and administrative reforms to expand the tax base, minimise tax expenditures, enhance compliance, and leverage technology to modernise tax processes.
“Concurrently, expenditure management will be strengthened through full operationalization of e-procurement, adoption of Zero-Based Budgeting principles, automation of public investment management, digitisation of pension and payroll systems, and accelerated transition toward accrual accounting,” reads the document.
According to Section 25 of the PFM Act, National Treasury shall prepare and submit to the Cabinet the BPS for approval. Subsequently, the approved BPS is submitted to Parliament, by the February 15 each year.
Parliament shall, not later than 14 days after the BPS is submitted, table and discuss a report containing its recommendations and pass a resolution to adopt it with or without amendments.
The Treasury Cabinet Secretary shall then take into account resolutions passed by Parliament in finalising the budget for the FY 2026/27 and the medium term.
