How Kenya Is Slashing Direct ICT Spending to Weaponize Digital Tax Tools

Kenya’s Treasury CS, John Mbadi, is cutting direct funding for the digital economy and IT sector by nearly a third in the new 2026/27 budget. Dropping from KSh 12.7 billion down to KSh 8.6 billion, this 32% budget cut reported by CIO Africa looks like a step backward for a country that calls itself Africa’s Silicon Savannah. Looking closely at the full KSh 4.8 trillion budget reveals a different plan. The government isn't giving up on technology, it is just shifting the cash where it pays off fastest.

Instead of handing cash to the IT ministry to build flashy tech hubs, the state is putting software directly into tax and purchasing departments. This shift turns software into an immediate money-maker rather than a long-term project. Traditional tech development is taking a hard hit so the state can fund tools to track public cash.

The money left over for the IT ministry shows exactly where the focus has shifted. A World Bank project takes up KSh 4.3 billion just to keep basic internet expansion moving. The rest goes to maintaining fiber networks and basic cybersecurity, leaving no big cash payouts for innovation centers. Meanwhile, the real digital investment is happening over at the Kenya Revenue Authority. On July 1, KRA takes over with heavy upgrades to its tax tracking systems and a brand-new mobile app for customs.

Using technology to survive financially changes how the state spends its money. Forcing county governments onto one central Treasury account to track public cash instantly requires a serious digital setup. Getting rid of paperwork in government buying demands a similarly strong network, which Mbadi is funding straight through internal Treasury channels. These specific tax tools make the actual IT ministry's budget look tiny compared to the KSh 668 billion given to education or the KSh 566 billion for security. By prioritizing tracking systems like the electronic tax invoice system to catch off-the-books sales instantly, the government is betting that technology must pay for itself before it gets any extra funding.