As we await the publication of the Finance Bill, 2025 with bated breath, it may be interesting to get a full picture of the budget process in Kenya. This week’s issue presents an overview of the process, starting with the legal provision that outlines the stages to be followed.

Kenya’s budget-making process is anchored in the Public Finance Management (PFM) Act, 2012, which sets out a structured annual cycle designed to ensure accountability, transparency and public participation. The process begins with long-term and medium-term development planning, followed by the preparation of key fiscal documents such as the Budget Review and Outlook Paper (BROP) and the Budget Policy Statement (BPS). These documents define the government’s economic priorities, revenue expectations and spending ceilings for the upcoming financial year, and must be submitted to Parliament for review and approval.

For the 2025/2026 financial year, the National Treasury will present the budget estimates and the Finance Bill to Parliament by 30 April 2025, paving the way for debate and finalization of spending and tax measures. The Cabinet Secretary is expected to deliver the 2025/26 Budget Statement on 12 June 2025, after which Parliament must pass the Appropriation Bill and the Finance Bill by 30 June 2025. These approvals legally authorize government expenditure and give effect to the tax and policy proposals that will guide Kenya’s fiscal direction for the year ahead.