The Kenyan government, through the National Treasury, has opened the floor for public participation in the preparation of the 2025/26 budget. The call for proposals from Kenyans, government agencies, Non-Governmental Organisations (NGOs), civil society, professional bodies, the private sector, and religious groups marks an important step in aligning the budget with the needs and aspirations of the citizenry. This process, which will be open until January 17, 2025, underscores the government’s commitment to transparency, accountability, and inclusive economic growth.
Openness and Accountability in Financial Matters
The request for public views is in line with the Constitution, which mandates openness and accountability in financial matters. The Constitution emphasizes the need for public participation in decision-making processes, especially those that affect the national budget and the welfare of the citizens. According to Treasury Cabinet Secretary John Mbadi, “The submissions may include measures on tax and revenue administration reforms, measures to support the growth of the manufacturing sector, and measures to enhance macroeconomic stability.” The call for specific proposals, especially in areas such as tax laws, revenue administration, and the implementation of the government’s Bottom-Up Economic Transformation Agenda, reflects a desire to address the economic challenges that Kenyans face at a grassroots level.
Zero-Based Budgeting: A New Approach for Fiscal Responsibility
A significant aspect of the 2025/26 budget-making process is the transition to zero-based budgeting (ZBB). This approach requires Ministries, Departments, and Agencies (MDAs) to prepare budgets from scratch rather than building on previous allocations based on historical trends. This is a shift from the traditional method where budget preparation was often incremental, sometimes resulting in inefficiencies and waste. The switch to ZBB aims to foster greater accountability, ensure the prioritization of resources, and eliminate unnecessary expenditures. “Under this approach, we want to ensure that every shilling spent is justified by its impact on the economy and the welfare of Kenyans,” Mbadi stated during the launch of the financial year 2025/26 budget planning process at the KICC.
Public Proposals and Their Impact
The National Treasury’s request for public proposals highlights the need for detailed, actionable suggestions to guide the 2025/26 budget. Kenyans and other stakeholders are encouraged to submit proposals specific to tax reforms, economic sector support measures, and project implementations under the government’s various economic agendas. For example, proposals may focus on enhancing agricultural productivity, promoting digital innovation, or reforming the financial sector. “The proposals received will guide the reforms to be undertaken to foster inclusive economic growth for the welfare of all Kenyans,” Mbadi emphasized.
The process not only seeks to incorporate local knowledge and insights into policy-making but also ensures that the economic blueprint for the next fiscal year reflects the needs and preferences of ordinary Kenyans. It is an opportunity for citizens to influence the budget directly and ensure that their voices are heard in national decision-making processes.
Timely Submissions and Strategic Planning
To facilitate timely submission and approval of key budget documents and requirements, the National Treasury published the FY 2025/26 Medium-Term Budget Calendar in October. This calendar outlines a structured timeline for the preparation and approval of the budget, ensuring that all necessary steps are adhered to for a smooth and transparent process. The publication also provides a roadmap for the transition to zero-based budgeting, helping MDAs to understand their roles and responsibilities in this new approach.
Mbadi’s keynote address in September provided a comprehensive update on the state of the budget-making process for the coming fiscal year. It also highlighted the challenges and new measures that the government plans to implement to execute the financial year 25/26 budget effectively. The Medium Term Budget Preparation process was launched with a focus on laying out the steps for a rigorous and well-planned budgeting process.
A Path to Inclusive Growth
The public’s involvement in the budget-making process is seen as a critical step towards achieving inclusive economic growth. By involving diverse groups ordinary citizens, NGOs, civil society organizations, and the private sector the government aims to ensure that the budget reflects the collective aspirations of the Kenyan people. The submissions received will guide the reforms necessary to address the economic disparities across the country, especially in marginalized communities.
In conclusion, the National Treasury’s call for public participation in the 2025/26 budget preparation is a significant move towards a more transparent and accountable government. The process is not just about creating a budget but about ensuring that the budget serves the interests of all Kenyans. As the deadline of January 17, 2025, approaches, stakeholders across the country have the opportunity to contribute their ideas, make their voices heard, and help shape a future that fosters economic growth and development for all.
