Treasury Cabinet Secretary John Mbadi has given a detailed account of the steps he has taken since his appointment, insisting that his reforms are beginning to bear fruit.
Speaking recently, Mbadi said his main focus has been to stabilize the economy, strengthen public finance management, and ensure that government obligations are fully met.
According to Mbadi, inflation has been brought down to more manageable levels, while Kenya’s debt-to-GDP ratio has also reduced through careful fiscal policies.
He explained that the government has adopted a more disciplined approach to borrowing and spending, which has allowed the Treasury to meet debt repayments on time without default.
The CS highlighted that for the first time, the 2025/26 national budget was prepared using zero-based budgeting. This approach requires every ministry and state department to justify its expenditure from scratch rather than depending on allocations from the previous year.
Mbadi said this move is aimed at increasing transparency and accountability in the use of public funds.
On government obligations, he pointed out that all county governments have received their full allocations, including arrears, by the end of the financial year.
The National Government Constituency Development Fund (NG-CDF) has also been fully disbursed, a step he described as proof of his commitment to strengthening devolution and development at the grassroots.
When it comes to taxes, Mbadi assured Kenyans that his administration has avoided introducing new taxes or raising existing rates. Instead, the Treasury has focused on closing loopholes, reviewing exemptions, and streamlining incentives to boost revenue collection.
To ease the burden on young people in digital markets, he also reduced the digital asset tax from 3% to 1.5%.
The CS further announced a Ksh 40 billion deal signed with China to finance the construction of 15 rural roads across the country. He also confirmed that Kenya had secured membership in the Asian Infrastructure Investment Bank, opening up more opportunities for infrastructure financing.
Mbadi emphasized that the government has not forgotten citizens affected by past unrest. He reaffirmed that both civilians and police officers who were injured, killed, or lost property during anti-government demonstrations from January 2017 to July 2025 will be compensated.
His ministry has also undertaken reforms within government institutions. He revoked some board appointments and replaced them with representatives from grassroots sectors such as matatu operators, boda boda riders, Jua Kali artisans, and mitumba traders.
He said this was to ensure inclusivity and fair representation in state agencies.
In addition, Mbadi is pushing for a payroll overhaul, where all civil servants will be integrated into the government’s digital payment system (IFMIS) to eliminate ghost workers and harmonize salary management.
Looking ahead, the CS said his legacy will be anchored on fighting corruption, improving economic stability, and making the Treasury more transparent. He believes the reforms being rolled out will gradually translate into better services and stronger economic growth for Kenyans.
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