Treasury Defends NIF and Sh1 Trillion Borrowing Plan as Court Rejects Bid to Save Presidential Offices - February 2026

Treasury Cabinet Secretary John Mbadi has defended the government’s plan to borrow Sh1 trillion from local banks to finance the 2026/2027 budget, assuring that lenders have sufficient capacity without crowding out the private sector. The National Treasury also defended the proposed National Infrastructure Fund (NIF) amidst a High Court challenge, clarifying it is a government-owned company, not a constitutional public fund. In a separate matter, the High Court rejected an application to suspend a previous judgment that nullified the creation of presidential advisory offices. Justice Bahati Mwamuye ruled the request was res judicata, as the same arguments had been dismissed before.