The government will prioritize tax relief for low-income households, strengthen tax administration, and attract private investment into major infrastructure projects under the 2026/27 budget proposals set to be presented to Parliament this week.
Deputy President Kithure Kindiki made the remarks on Tuesday after chairing a meeting of the Joint Cabinet Committee at Harambee House Annex, where members reviewed the country’s economic outlook, budget estimates, and proposed revenue-raising measures ahead of the National Treasury’s presentation to the National Assembly on Thursday.
Government Targets Broader Tax Base
Kindiki said the government’s revenue strategy will focus on improving tax administration rather than imposing excessive burdens on citizens, while ensuring vulnerable groups receive targeted support.
“This morning, the Joint Cabinet Committee has been apprised on the outlook of the economy, the highlights of the 2026-2027 budget estimates and the proposed revenue-raising measures ahead of their presentation to the National Assembly on Thursday,” Kindiki said.
He noted that the proposed measures seek to enhance revenue collection efficiency while creating room for economic growth and protecting vulnerable Kenyans.
“Revenue-raising measures will target improving tax administration to broaden the tax base while providing relief to low-income and vulnerable members of society,” he said.
The approach comes amid growing calls for the government to ease the cost-of-living burden while maintaining fiscal stability and financing key development priorities.
Private Capital to Drive Infrastructure Development
The Deputy President also outlined a new financing model that seeks to reduce pressure on public finances by attracting private sector investment into commercially viable infrastructure projects.
According to Kindiki, the government intends to increasingly rely on blended financing arrangements that combine public resources with private capital to fund strategic projects.
“Funding of commercially viable public infrastructure projects will leverage on blending the resources from the public sector to attract private investment in the projects,” he said.
He added that the strategy would allow the government to continue delivering critical infrastructure without overburdening taxpayers or increasing public debt levels.
The model is expected to support investments in transport, energy, logistics, water, and other sectors considered critical to Kenya’s economic transformation agenda.
Freeing Resources for Priority Sectors
Kindiki emphasized that attracting private investors into infrastructure projects would free government resources for sectors that directly impact citizens’ livelihoods.
“The approach will ease pressure on the budget and free resources to fund other critical economic sectors,” he said.
Analysts say increased private sector participation could help accelerate the delivery of large-scale projects while enabling the government to allocate more funding toward healthcare, education, agriculture, social protection, and job creation initiatives.
The 2026/27 budget is expected to outline the government’s priorities for economic growth, fiscal consolidation, and investment promotion as Kenya seeks to strengthen recovery and sustain long-term development.
Treasury Cabinet Secretary John Mbadi is scheduled to present the budget estimates and accompanying fiscal measures to the National Assembly on Thursday.
