BETA Agenda Takes Centre Stage in Sh4.82 Trillion Budget

By Gadiel Satin

The government’s Bottom-Up Economic Transformation Agenda (BETA) received a significant boost after Treasury Cabinet Secretary John Mbadi unveiled a Sh4.82 trillion budget for the 2026/27 financial year, focusing on job creation, food security, affordable housing, healthcare and economic growth.

Presenting the budget before the National Assembly, Mbadi said the spending plan is designed to sustain economic recovery, support businesses, create opportunities for young people and maintain macroeconomic stability.

“The budget I present today seeks to sustain economic recovery, create opportunities for our youth, support businesses and maintain macroeconomic stability,” Mbadi told lawmakers.

The National Treasury has allocated Sh386.1 billion to support the implementation of the Bottom-Up Economic Transformation Agenda, which remains the cornerstone of President William Ruto’s economic blueprint. The funding will target key sectors including agriculture, manufacturing, housing, healthcare and the digital economy.

Agriculture, one of the pillars of the BETA agenda, has been allocated Sh64 billion to support fertilizer subsidies, irrigation projects, climate resilience programmes and value-addition initiatives aimed at increasing food production and boosting farmers’ incomes.

“The agriculture sector remains central to Kenya’s long-term prosperity,” Mbadi said.

The proposed budget represents an increase from the Sh4.63 trillion allocated in the previous financial year. Of the total expenditure, Sh3.53 trillion has been earmarked for recurrent spending, while Sh749 billion will fund development projects.

However, debt repayment obligations continue to exert pressure on public finances. Consolidated Fund Services has been allocated Sh1.5 trillion, largely to cater for debt servicing.

Education emerged as the largest beneficiary of the budget, reflecting the government’s commitment to supporting schools, universities and technical training institutions. The Treasury has allocated Sh13.1 billion for teacher recruitment, including Sh4.9 billion to convert 20,000 intern teachers to permanent and pensionable terms from January 2027.

“I propose Sh4.9 billion for conversion of 20,000 intern teachers into permanent and pensionable terms from January 2027,” Mbadi announced.

The government projects total revenue and grants of approximately Sh3.64 trillion, resulting in a budget deficit of about Sh1.15 trillion. The shortfall will be financed through a combination of domestic and external borrowing.

Treasury officials maintain that the government remains committed to reducing the deficit over the medium term while safeguarding fiscal sustainability.

Mbadi also defended the budget-making process, emphasizing the role of public participation in shaping the final document.

“We have gone beyond the minimum legal requirements to ensure public participation and transparency in budget preparation,” he said.