Kenya has made significant progress in enhancing the transparency of its public finance system, ranking well above many African countries in budget disclosure. However, recent analysis by the African Development Bank (AfDB) reveals that these transparency gains have not translated into improved trust or fiscal discipline.
The AfDB's 2023 Open Budget Survey scored Kenya 55 out of 100, surpassing the continental average of 41. This reflects years of reforms aimed at increasing public access to financial information and strengthening accountability. Yet, the report highlights persistent issues such as frequent supplementary budgets, expenditure overruns, and repeated revisions to spending plans.
Budget Credibility Challenges
- By April 2026, Kenya revised its 2025/26 fiscal deficit target from 4.8% to 6% of GDP due to revenue shortfalls and rising expenditure pressures.
- These adjustments undermine the budget’s reliability as a planning tool and raise doubts about the government’s ability to manage spending priorities effectively.
- Public scepticism remains high, with 50 to 55 percent of Kenyans preferring lower taxes even if it means fewer government services, compared to 40 to 45 percent willing to pay more taxes for better services.
Structural Issues Affecting Fiscal Management
The report identifies several systemic weaknesses that hamper public financial management, including:
- Delays in implementing audit recommendations
- Procurement inefficiencies and bottlenecks
- Fragmented digital financial systems and uneven technical capacity across government levels
- Weaknesses in project selection and investment monitoring leading to delays and cost overruns
- High levels of pending bills at county governments, estimated at KSh 693.1 billion in 2025 (3.7% of GDP), straining service delivery and contractors
The AfDB underscores the need for stronger oversight, improved coordination, and more efficient spending to enhance service delivery, restore public confidence, and support Kenya’s long-term economic growth.
