By Fridah Mbuvi, June 12, 2026
A comment by CPA Winny Cherotich, Vice Chairperson of the ICPAK South Rift Branch, has reignited debate over whether the National Treasury has truly implemented Zero-Based Budgeting (ZBB) in the recently presented KSh 4.82 trillion FY 2026/2027 budget.
The National Treasury, led by Cabinet Secretary John Mbadi, maintains that the budget was built from a “clean slate,” requiring ministries, departments and agencies to justify every expenditure item afresh rather than relying on historical allocations. The Treasury has framed the approach as a key reform aimed at reducing inefficiencies, curbing waste and improving fiscal discipline.
However, financial professionals and members of ICPAK argue that the structure of the budget suggests continued reliance on incremental budgeting. Critics point to the record KSh 4.82 trillion expenditure plan and a projected KSh 1.2 trillion fiscal deficit, which is largely financed through approximately KSh 995 billion in domestic borrowing, as evidence that spending patterns remain anchored to previous budget baselines rather than being rebuilt from zero.
Under classical Zero-Based Budgeting principles, every budget cycle begins from a zero base, requiring all programmes and activities to be fully justified regardless of past funding. The approach eliminates automatic funding assumptions and is intended to expose redundant or low-impact expenditures for possible removal.
ICPAK-linked analysts argue that Kenya’s current fiscal structure does not fully meet this standard, noting that key recurrent expenditures such as debt servicing and public sector salaries remain fixed obligations that cannot realistically be subjected to annual zero-base scrutiny. This, they say, limits the extent to which true ZBB can be applied in practice.
The Treasury has acknowledged that the transition to full Zero-Based Budgeting will be gradual, with CS Mbadi previously indicating that full implementation across all ministries and agencies could take up to three years due to institutional and technical constraints.
Financial experts further point to internal resistance within government departments, where agencies are reportedly reluctant to undergo the rigorous justification process required under ZBB, which demands detailed annual defence of all programmes and operational costs.
Despite the ongoing debate, Treasury insists that the reform is already improving budget discipline and reducing unnecessary spending commitments, even as analysts continue to question whether the current framework represents a genuine shift from traditional incremental budgeting or a rebranding of existing fiscal practices.
