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Revenue projections stand at Sh3.63 trillion from ordinary collections and Sh644 billion from Appropriation-in-Aid. This leaves a funding gap of Sh1.11 trillion, which the government plans to cover through borrowing—Sh995.7 billion from the local market and Sh145.6 billion from external sources.
Mbadi pointed to the construction industry as one of the clearest signs of recovery, saying it moved from contraction in the previous year to solid growth.
The proposal is outlined in the Road Maintenance Levy Fund (Amendment) Bill, 2026, which is now under consideration in Parliament. It sets out a direct change to the current statutory formula governing the allocation.
The Economic Survey 2026 reports that the mining and quarrying sector bounced back strongly in 2025, expanding by 14.9 percent after shrinking by 7.8 percent in 2024.
The arrangement is anchored under the Kenya–China Early Harvest Agreement and is expected to benefit approximately 98.2 percent of Kenyan exports.
The proposed changes are contained in the Draft Income Tax (Residential Rental Income Tax) Regulations of 2026, which require all individuals earning taxable rental income to register their properties through the Electronic Residential Rental Income Tax System (eRITS), replacing the current voluntary registration model.
One of the weakest performers was sugar, where output dropped by 24.8 per cent to 613,000 metric tonnes in 2025. Soft drinks production moved in the opposite direction, rising by 4.9 per cent to 703.7 million litres, although this was lower than the 15.6 per cent expansion recorded the previous year. Processed milk also posted gains, increasing from 619.1 million litres in 2024 to 701.5 million litres in 2025.
The decision follows growing concern from oil sector players who have been struggling to secure fuel that meets Kenya’s strict quality requirements. Industry reports point to tightening global supply, with particular pressure coming from disruptions around the Strait of Hormuz, through which a large share of global oil shipments pass.
The Bill seeks to establish a national fund to manage proceeds from strategic resources such as minerals and oil, with the goal of preserving wealth for long-term national benefit. However, Okoa Uchumi said the main concern is not the idea of the fund itself, but how it will be controlled and managed.
Ecobank’s Mohamed Souleymane says the US Federal Reserve’s decision to hold rates at 3.5%–3.75% offers short-term stability for Kenya. He warns that Middle East tensions and oil volatility could still pressure inflation, currencies and fuel costs.
Kenya’s growth rate also dipped slightly from 4.7 per cent in 2024 to 4.6 per cent in 2025, despite the report noting that “positive growths in all sectors of the economy” were achieved during the year.
Meta says it logged a milestone quarter with more than 3.5 billion people using its apps daily. It links gains in Instagram, Facebook and WhatsApp to new AI models, while citing user declines tied to outages in Iran and Russia restrictions.
Newly registered motor vehicles also recorded a slight rise, standing at 142,994 in 2025 compared to 140,703 in 2024. A longer view shows 119,205 vehicles in 2023, 99,365 in 2022 and 107,499 in 2021, reflecting gradual growth over time.
Economist XN Iraki, in a Radio Generation interview, reviewed the 2026 Economic Survey and said Kenya’s 4.6% growth and 800,000 jobs figures should be tested against everyday conditions, citing likely informality.
The Alcoholic Beverages Association of Kenya (ABAK) told MPs on Wednesday that while licensed manufacturers continue to invest in the sector, illegal operators are taking advantage of gaps in enforcement and regulatory control to expand their reach.
The surge is part of a steady upward trend recorded over the last three years. In 2023, total internet traffic stood at 1.74 billion GB. This figure rose to 3.60 billion GB in 2024 before jumping again to 5.19 billion GB in 2025, showing continuous acceleration in data consumption.
Total recurrent spending for the nine months stood at Sh1.17 trillion, compared to Sh991.75 billion in the same period a year earlier and Sh905.78 billion in the 2023/24 financial year.
The initiative aligns with Kenya’s climate targets of reducing carbon emissions by 32 percent by 2030, as more corporates turn to sustainable transport solutions.
KRA explained that the draft regulations were developed by the Commissioner General acting on behalf of the Cabinet Secretary for the National Treasury, following the requirements set out under the Statutory Instruments Act, Cap. 2A.
According to the 2026 Annual National Shadow Budget, the government borrowed a net Sh1.03 trillion in the 2024-25 financial year, but only Sh582.9 billion was channelled towards development expenditure. This gap has sparked concern over whether borrowing is delivering meaningful long-term benefits.
Kindiki said Africa must urgently align itself with global technological shifts that have placed digital systems at the centre of economic and institutional progress.
Safaricom CEO Peter Ndegwa said M-Pesa processes about Sh103.2 billion daily through more than 500 million transactions across seven markets, following installation of infrastructure capable of 10,000 transactions per second. He spoke in Nairobi at the Connected Africa Summit.
According to a public notice published on MyGov on April 28, 2026, the new system will see validated export values automatically prefilled under zero-rated supplies once the relevant export documents are issued by Customs.
Treasury figures show that ministries, departments and agencies used Sh262.63 billion on development between July and March 2026, up from Sh170.83 billion in the same period the previous year, representing a 53.7 percent rise.
Output is also forecast to increase, with production projected to grow by 4.8 per cent to 727,000 tonnes in 2026. The rise is linked to improved yields and a steady increase in acreage under the crop.
all pending balances must be cleared much earlier. The authority says the move is meant to improve timely payment and reduce accumulation of tax debts.
Acting Director of Human Resource Management and Development Joseph Wambo formally communicated the decision during a meeting, noting that Etenyi had gone through due process and received official confirmation from the commission.
The report points to a major legal development this year, where the Court of Appeal of Kenya nullified Sections 22 and 23 of the Computer Misuse and Cybercrimes Act, which had for years been applied to regulate online content considered “false” or “misleading.”
According to Mbadi, governments across the continent are being forced to carefully juggle between funding development projects and managing strained budgets. He pointed to global financial conditions that have made borrowing “more expensive, less predictable and restrictive for developing economies,” adding further pressure on already stretched public finances.
Kenya continues to maintain a positive trade balance with the Netherlands, with imports from the European country standing at Sh44.8 billion, leaving a surplus of about Sh24.8 billion.