National Treasury Cabinet Secretary, Hon. John Mbadi is set to deliver his first official Budget Day speech on Thursday, June 12, 2025, before the National Assembly.

The proposed national budget for the 2025/2026 Financial Year stands at Ksh. 4.239 trillion and is anchored on President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA) and the broader goals of Vision 2030.

The gross expenditure is structured into three key categories: Ksh. 1.79 trillion for recurrent expenditure, Ksh. 1.337 trillion for Consolidated Fund Services (CFS), and Ksh. 707.8 billion for development expenditure.

Education has been allocated the highest share of the national government budget at Ksh. 701.1 billion, representing 28.1 percent. This will cover capitation grants, teacher salaries, and infrastructure development for both basic and higher education institutions.

The Energy, Infrastructure, and ICT sector follows with an allocation of Ksh. 500.7 billion. This includes Ksh. 195 billion for roads, Ksh. 119 billion for housing and urban development, and Ksh. 92 billion for the energy and petroleum sector.

National security has been allocated Ksh. 251 billion, while the health sector will receive Ksh. 136.8 billion. Of this, Ksh. 54 billion is earmarked for referral services, Ksh. 16.6 billion for disease control programs, and Ksh. 10 billion to support chronic and emergency illness interventions as part of the Universal Health Coverage (UHC) program.

The agriculture sector will receive Ksh. 78 billion, which includes Ksh. 8.2 billion for fertilizer subsidies and Ksh. 10.2 billion to support value chain development.

To support Micro, Small and Medium Enterprises (MSMEs), the government has set aside more than Ksh. 12 billion. These funds will support County Aggregation and Industrial Parks as well as enterprise recovery programs. The MSME sector contributes an estimated 24 percent to the country’s GDP.

Counties are set to receive an equitable share of Ksh. 405.1 billion to enhance service delivery at the devolved level.

In housing, the government aims to deliver over 215,000 affordable housing units and 94,000 hostel beds. This initiative is expected to stimulate employment opportunities for youth and boost the construction sector.

The digital economy has been allocated Ksh. 3.7 billion under the Kenya Digital Economy Acceleration Project. This funding will support the installation of 35,000 kilometers of fiber optic cable, connect 43,000 public institutions, and establish 15,000 Wi-Fi hotspots nationwide.

The 2025/2026 Budget is based on a projected economic growth rate of 5.3 percent, up from 4.7 percent in 2024. This growth is expected to be driven by improved performance in agriculture, tourism, construction, and information and communication technology.

“This budget must not only support growth but also safeguard the country from debt vulnerabilities,” said Hon. Samuel Atandi, Chairperson of the Budget and Appropriations Committee.

Members of the National Assembly began debating the proposed estimates last week, ahead of the formal presentation by the Treasury CS. The June 12 address is expected to offer clarity on how the government plans to finance the ambitious spending plan amid constrained fiscal space.