Government allocates KSh386.1 billion to accelerate bottom-up economic transformation agenda

The Kenya Kwanza administration has set aside KSh386.1 billion in the 2026/27 national budget to accelerate the implementation of the Bottom-Up Economic Transformation Agenda (BETA), the government’s flagship strategy aimed at driving inclusive economic growth and improving livelihoods.

Treasury Cabinet Secretary John Mbadi announced the allocation while presenting the 2026/27 Budget Statement in Parliament on Thursday, June 11, saying the funds will be invested across key sectors of the economy through a value-chain approach designed to spur productivity, job creation, and sustainable development.

“The implementation of the Bottom-Up Economic Transformation Agenda (BETA) has been allocated KSh386.1 billion in the FY 2026/27 budget,” Mbadi told lawmakers.

Infrastructure Receives Largest Share

Infrastructure projects emerged as the biggest beneficiary under the BETA allocation, receiving KSh138.8 billion.

The funding will support investments in roads, energy projects, transport networks, and other critical infrastructure aimed at improving connectivity, reducing the cost of doing business, and stimulating economic activity across the country.

Government officials say modern infrastructure remains a key pillar in unlocking economic opportunities and attracting investment.

Social Services Secure KSh119.3 Billion

The social sector has been allocated KSh119.3 billion to support essential services including education, healthcare, and social protection programmes.

The funding is expected to strengthen access to quality public services while improving outcomes in health and education, which remain central to the government’s development agenda.

Officials say investments in human capital are critical to achieving long-term economic transformation.

Boost for MSMEs and Agriculture

The Finance and Production Economy cluster will receive KSh56.9 billion to support Micro, Small and Medium Enterprises (MSMEs), agricultural value chains, manufacturing, and industrial development.

The allocation is expected to strengthen productivity, expand market opportunities, and increase access to financing and support services for small businesses and farmers.

The government views MSMEs as a key driver of employment and economic growth.

Governance and Public Service Delivery

To enhance efficiency in government operations and strengthen public institutions, the Governance and Public Administration sector has been allocated KSh46.1 billion.

The funds will support public sector reforms, digitization of government services, and efforts to improve service delivery across national and county governments.

Land and Natural Resources Get KSh25.1 Billion

The Land and Natural Resources sector received KSh25.1 billion to support land management reforms, environmental conservation initiatives, and sustainable exploitation of natural resources.

The funding will also contribute to climate resilience efforts and environmental protection programmes.

Five Strategic Clusters

According to the Treasury, the KSh386.1 billion BETA allocation will be implemented through five strategic clusters:

Mbadi said the cluster-based approach is intended to ensure resources are directed toward sectors with the greatest potential to generate economic growth, create jobs, and improve household incomes.

Government Banking on BETA for Economic Growth

The Bottom-Up Economic Transformation Agenda remains the cornerstone of President William Ruto’s economic strategy, focusing on agriculture, housing, healthcare, MSMEs, and the digital economy.

By directing KSh386.1 billion toward the programme in the coming financial year, the government hopes to accelerate economic recovery, expand opportunities for businesses and households, and deliver tangible development outcomes across the country.

As implementation begins, attention will shift to whether the ambitious investments can translate into faster growth, lower unemployment, and improved living standards for millions of Kenyans.