Government departments will be forced to restructure their budgets in coming months following latest directive by Treasury boss Ukur Yatani.
Previously, Kenya has been reaching out to donors and other international partners to finance her huge deficit in budget.
But Mr Yatani, who was formally appointed to the treasury on Tuesday, says the country will now use what it has.
“The era that we kept on spending outside the budget when we don’t have the ability to finance our own activities is long gone,” he told a meeting to prepare the government’s 2020/21 budget.
“We are going to cut our coat according to our cloth and size. We will give what we can afford.”
The fiscal gaps were accompanied by consistent failure by the Kenya Revenue Authority (KRA) to meet the government’s lofty revenue collection targets every financial year.
“When the KRA and other agencies charged with the responsibility of collecting taxes deliver, it is when we are going to spend, because the other option that we have, we have either exhausted or we are on the edge,” Mr Yatani said.
Kenya has struggled to finance her Sh2.9 trillion budget with President Uhuru Kenyatta being accused of borrowing billions without any tangible development.