A contractor waiting to be paid by a state corporation is part of a queue the National Treasury puts at KES 475.5bn. That was the stock of national government pending bills, money owed and not yet paid, on 30 June 2026.
The figure is in the Treasury's 2026 Budget Review and Outlook Paper, its review of the financial year to 30 June 2026. The same paper shows revenue fell KES 60.2bn short of target.
The year in five numbers
| Item, year to 30 June 2026 | Target | Outturn |
|---|---|---|
| Total revenue, including appropriations-in-aid | KES 3,259.0bn | KES 3,198.8bn |
| Ordinary revenue (mostly taxes) | KES 2,640.6bn | KES 2,588.4bn |
| Investment revenue | KES 150.2bn | KES 84.8bn |
| Total spending and net lending | KES 4,656.5bn | KES 4,484.2bn |
| Fiscal deficit, including grants | KES 1,357.7bn (7.3% of GDP) | KES 1,264.7bn (6.8% of GDP) |
Source: The National Treasury, 2026 Budget Review and Outlook Paper. Figures are provisional.
Facts. Ordinary revenue missed its target by KES 52.2bn. Pay-as-you-earn tax beat its target by KES 7.7bn. Investment revenue fell KES 65.4bn short, which the Treasury puts mainly down to reduced dividend receipts. External grants came to KES 20.7bn against KES 39.9bn planned.
Facts. Spending came in KES 172.4bn under plan. Recurrent spending was KES 115.4bn below target, "mainly attributed to below-target expenditure in domestic interest and pensions payments." Development spending was KES 39.5bn below target, and transfers to counties KES 17.5bn below.
Facts. Of the KES 475.5bn in pending bills, KES 365.6bn was owed by state corporations and KES 109.9bn by ministries and other government entities. The Treasury lists contractors, suppliers, unremitted statutory and other deductions, and pension arrears among the state corporations' bills.
What it means
For taxpayers (Analysis): the deficit came in below target because spending fell short by more than revenue did, not because revenue rose to plan. PAYE, the tax taken from salaries, was above target, as were import duty and VAT taken together.
For suppliers (Analysis): a smaller deficit and a large stock of unpaid bills sit side by side. Money not spent in the year is not the same as money not owed.
For savers in government paper (Analysis): the deficit was financed mostly at home, KES 983.7bn of net domestic financing against KES 267.3bn from abroad. That is the borrowing that Treasury bill and bond auctions carry.
What to watch
- By 13 November 2026: the 2027 Budget Policy Statement is due at Cabinet; by 30 November 2026, in Parliament.
- By 30 January 2027: the budget estimates and the Finance Bill, 2027 are due in Parliament.
- 18 March 2027: the Budget Statement is scheduled, under a revised calendar the Treasury says is meant to complete the budget process ahead of the 2027 General Elections.
Every Treasury bill result, with its source, is on our Kenya T-bill page.
Information, not advice.