Economic Planning in Kenya dates back to the pre-independence period and has evolved alongside the country’s socio-economic and institutional development. The origins of formal economic planning can be traced to the constitutional reforms introduced under the Oliver Lyttelton Constitution of 1954, which led to the establishment of the Ministry of Finance and Development and laid the foundation for coordinated financial and national development planning..

Following the attainment of internal self-government in June 1963, a Directorate of Planning was established under the Ministry of Finance and Economic Planning. The Directorate comprised three key divisions: the Economic Planning Division, Financial Planning Division, and Statistics Division, reflecting the Government’s commitment to coordinated national development planning and resource allocation..

On 12th December 1964, the Government established a fully-fledged Ministry of Economic Planning and Development to assume responsibility for economic planning and statistical functions previously undertaken by the Directorate of Planning. The Financial Planning Division remained under the Ministry of Finance, while technical assistance functions were transferred to the newly established Ministry of Economic Planning and Development..

Since then, the economic planning function has undergone several institutional realignments in response to changing national priorities and administrative reforms. Over the years, it has been implemented through various organizational arrangements, including a fully-fledged Ministry, a Department, and a Division within ministries responsible for national planning and development.

Today, the State Department for Economic Planning serves as the principal government entity responsible for providing policy direction and coordination of all matters related to economic planning in Kenya.

Pursuant to Executive Order No. 1 of June 2025, the State Department for Economic Planning is domiciled within the Ministry of The National Treasury, where it continues to provide strategic leadership in advancing Kenya’s socio-economic transformation and sustainable development. In line with its mandate, the State Department is undertaking far-reaching institutional and policy reforms aimed at re-engineering the economic planning function to respond effectively to the evolving development landscape, emerging national priorities, and the increasing complexity of planning across multiple levels of government..

Following the approval of its Organizational Structure and Staff Establishment in December 2024, the State Department commenced a comprehensive process of unbundling and rationalizing its functions to enhance clarity of mandate, strengthen institutional effectiveness, and improve service delivery. The State Department has also undertaken a functional restructuring exercise to deepen sectoral engagement and coordination, promote specialization, and align planning functions with contemporary development needs, thereby fostering a more integrated, responsive, and results-oriented planning framework..

Further, the State Department is spearheading the formulation of a comprehensive Economic Planning Policy and Economic Planning Bill that will establish a robust legal and institutional framework for development planning at both the national and county levels. These instruments are intended to standardize planning processes, strengthen alignment with national development priorities, and promote coherence, accountability, inclusivity, and effective monitoring and evaluation across the planning cycle..

Through these reforms, the State Department for Economic Planning is positioning itself as a modern, dynamic, and strategic institution capable of driving evidence-based planning, enhancing policy coordination, and providing leadership in the realization of Kenya’s long-term development aspirations and sustainable socio-economic transformation..