Treasury to table first 2026/27 supplementary budget in November, with pending bills and KQ cash

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Kenya’s first supplementary budget for 2026/27 is expected in November, as Treasury Cabinet Secretary John Mbadi looks to fund new spending approved by Cabinet while tax collections lag targets, Business Daily reported on October 30, 2026.

“We are hoping that in the supplementary budget coming in the next three weeks, we will be making submissions on how to clear most of the pending bills,” Treasury Principal Secretary Chris Kiptoo told the National Assembly’s Finance and National Planning Committee.

What the supplementary budget is likely to include

• Pending bills of KSh50 million and below. Cabinet approved settling these earlier in October, with priority for micro, small and medium enterprises. That is meant to ease cash flow for suppliers and contractors who have waited months or years to be paid.
• Kenya Airways financing. Cabinet approved KSh45.5 billion (US$350 million) in shareholder financing for the national carrier to meet urgent obligations, including aircraft maintenance and returning grounded planes to service. We covered the Cabinet decision on KQ and the fleet revival plan earlier.
• Other Cabinet-approved spending made since the main budget was passed.

The fiscal squeeze behind the mini budget

The deficit is projected to widen to 5.9% of GDP in 2027/28. Ordinary revenue in the first quarter was KSh655.8 billion, up 14.4% from KSh573.5 billion a year earlier, but still well below target. Treasury has already cut its revenue targets after a KSh28bn shortfall in the first two months.

Roads pending bills

Treasury has cleared about KSh80 billion of road-sector pending bills by securitising the Road Maintenance Levy Fund, which is financed by a KSh25 charge on every litre of petrol and diesel. See our earlier report on how the fuel-levy financing works.

What it means for suppliers

If you supply national government and are owed KSh50 million or less, the supplementary budget is the funding vehicle to watch. Make sure your invoices are captured in the system and your tax compliance is current; our guide to IFMIS and supplier payments explains how government payments flow and what is withheld.

A supplementary budget has to be approved by the National Assembly before money can be spent, so payments will not start the day it is tabled.

How the supplementary budget process works

The Treasury CS submits supplementary estimates to the National Assembly, where the Budget and Appropriations Committee reviews them and reports to the House. Once MPs approve, a Supplementary Appropriation Bill gives legal authority to spend. The Constitution limits how much spending can be added without approval, and money already spent under emergency powers must be regularised through this process. Watch for the committee report, which usually shows exactly which ministries gain or lose money and is the clearest guide to whether your pending bill is funded.

FAQ

What is a supplementary budget?

It is a mid-year change to the approved national budget, tabled by the Treasury CS and approved by Parliament, to fund new or changed spending.

When will Kenya’s 2026/27 supplementary budget be tabled?

Treasury expects to table it in November 2026, within about three weeks of October 27.

Which pending bills will be paid first?

Cabinet approved settling pending bills of KSh50 million and below first, prioritising MSMEs.

How big is Kenya’s 2026/27 budget deficit?

KSh1.14 trillion, or 5.5% of GDP.

Updated October 31, 2026.

Related: Half of every shilling KRA collects goes to interest, Treasury PS tells MPs probing KSh533.7bn domestic debt bill