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Medium-term budget planning and fiscal framework in Kenya

Kenya’s Medium-Term Expenditure Framework (MTEF) for the period 2026/27 to 2028/29 sets out how the Government intends to manage spending, borrowing and revenue collection over the next three years. Unlike the annual budget, which can be reactive or politically driven, the MTEF provides a forward-looking framework, anchoring fiscal policy to sustainable expenditure limits and revenue targets. It signals the Government’s direction on tax policy, borrowing appetite, liquidity conditions in domestic markets and regulatory pressures for financial institutions and investors. This enables stakeholders to plan for risk management and capital allocation. It reveals where fiscal pressure will fall if economic assumptions do not hold and where risk will ultimately be absorbed.