East Africa's 2026/27 budgets compared, where each country is spending its money

East Africa's finance ministers have unveiled budgets worth nearly US$90 billion for the 2026/27 financial year, setting out ambitious spending plans despite growing pressure from rising debt, higher fuel prices and global economic uncertainty.

Kenya, Uganda, Tanzania and Rwanda have all increased public spending, but each has adopted a distinct strategy shaped by its economic priorities.

While Kenya is banking on record expenditure to sustain growth and fund public services, Uganda is positioning itself for an oil-driven economic transformation.

Tanzania is focusing on self-reliance, while Rwanda continues to expand investment in key sectors to strengthen economic resilience.

Kenya presented the largest budget in East Africa, with the government proposing Sh4.84 trillion (US$37.5 billion) for the 2026/27 financial year. It is also the biggest budget in the country's history.

The spending plan places Kenya well ahead of its regional peers, accounting for more than 40 per cent of the combined budgets presented across East Africa.

The budget is designed to finance government operations, county allocations, education, healthcare, infrastructure and social programmes while also meeting the country's growing debt obligations.

However, a significant share of the expenditure will go towards recurrent spending, including salaries, pensions and debt servicing, leaving a comparatively smaller allocation for development projects.

The government is also aiming to reduce the fiscal deficit by increasing domestic revenue collection without introducing sweeping new taxes that could further burden households and businesses.

Uganda's USh84.3 trillion (about US$22.5 billion) budget is built around expectations that the country will begin commercial oil production during the financial year.

The government projects economic growth of 10.2 per cent, one of the fastest rates in Africa, driven largely by the petroleum sector.

Officials believe oil exports, alongside continued investment in manufacturing, agriculture and infrastructure, will generate higher revenues and accelerate industrialisation.

The budget reflects Uganda's long-term ambition of transforming into a middle-income economy by increasing exports and reducing dependence on traditional sources of income.

Tanzania tabled a TSh61.9 trillion (about US$23 billion) budget, with Finance Minister Khamis Omar presenting his first national budget since taking office.

The spending plan is centred on domestic self-reliance, with the government seeking to strengthen local revenue mobilisation while reducing dependence on foreign aid and external borrowing.

Key investments have been earmarked for transport infrastructure, energy projects, industrial development and social services.

The approach reflects Tanzania's broader strategy of financing more of its development agenda through internally generated resources while improving economic competitiveness.

Rwanda announced a 12 per cent increase in government spending, bringing its 2026/27 budget to approximately RWF7.8 trillion (US$5.5 billion).

Despite having the smallest budget among the four countries, Rwanda continues to prioritise strategic investments in agriculture, education, healthcare, job creation and infrastructure.

The increased expenditure is also intended to strengthen economic resilience as the country navigates external shocks affecting global trade and investment.

Although each country has adopted different spending priorities, all four budgets have been presented against a difficult global economic backdrop.

Finance ministers across East Africa acknowledged the impact of rising international fuel prices, increasing public debt and supply chain disruptions linked to the ongoing conflict in the Middle East.

Higher fuel costs have pushed up transport and production expenses, placing additional pressure on inflation and the cost of living.

At the same time, governments continue to grapple with growing debt repayments, limiting the amount of money available for new development projects.

The uncertain global environment has also prompted governments to place greater emphasis on domestic revenue collection, prudent borrowing and policies aimed at strengthening economic resilience.