On Tuesday, Principal Secretary Chris Kiptoo of the National Treasury delivered the 2026 Budget Policy Statement (BPS) to the Finance and National Planning Committee of the National Assembly.
The committee, presided over by Molo MP Kimani Kuria, received the document outlining Kenya’s improving macroeconomic prospects and the Government’s ongoing commitment to fiscal consolidation and structural reforms.
Addressing the committee, Kiptoo reported that Kenya’s economy had expanded by approximately five percent in 2025 and is anticipated to grow by 5.3 percent in 2026.
He credited this growth to increased agricultural productivity, continuous expansion in the services sector, and higher diaspora remittances.
“Kenya’s economy has demonstrated resilience, and with appropriate reforms, we are optimistic about maintaining growth momentum in 2026,” stated Kiptoo.
The PS further emphasized enhanced external sector stability, noting that official foreign exchange reserves had increased to USD 12.1 billion (5.2 months of import cover) by December 2025, up from USD 10.1 billion in 2024.
He explained that this improvement has strengthened macroeconomic stability and investor confidence.
The PS mentioned that Capital markets have also recovered significantly, with the NSE 20 Share Index climbing by 52.4 percent in January 2026 compared to January 2025.
Total market capitalization grew by over 55 percent, representing the strongest performance since the pre-COVID period.
Kiptoo reiterated the Government’s dedication to fiscal sustainability through measures including enhanced domestic revenue mobilization, expenditure streamlining, digitization of public finance systems, full implementation of e-procurement, transition to accrual accounting, rollout of the Treasury Single Account, and expanded utilization of strategic Public-Private Partnerships (PPPs).
“We are committed to reinforcing fiscal sustainability by modernizing public finance management and utilizing PPPs to develop essential infrastructure,” he informed the MPs.