The National Assembly commenced debate on Wednesday, June 4, 2025, on the Budget and Appropriations Committee’s report on the 2025/2026 Budget Estimates and the medium-term outlook, which outlines a proposed total expenditure of Kshs 4.239.9 trillion.

The allocations comprise Kshs. 1.79 trillion Recurrent Expenditure; Kshs. 707.8 billion Development Expenditure; Kshs. 1.337 trillion Consolidated Fund Services (CFS) comprising Kshs. 1.098 trillion for debt interest payments and Kshs. 239.6 billion for pensions and independent constitutional offices; and Kshs. 405.1 billion Equitable Share to County Governments.

While moving the motion, the Committee Chairperson, Hon. Samuel Atandi (Alego Usonga), emphasized that the 2025/26 Budget signals a shift toward more grounded and realistic fiscal planning.

“For the first time, the revenue projection from the National Treasury is lower than that of the Parliamentary Budget Office. This signals a more realistic approach to budgeting, grounded in actual revenue collection capacity,” said Hon. Atandi.

During the debate, Members acknowledged that the proposed budget had taken significant steps toward addressing the needs of Kenyans by prioritizing allocations to key sectors such as agriculture, housing, healthcare, and digital transformation, with a focus on supporting vulnerable groups.

Leader of the Majority Party, Hon. Kimani Ichung’wah, commended the Committee for delivering a balanced report and acknowledged the fiscal challenges reflected in the estimates.

“The Budget Estimates come with revenue projections including Appropriations-in-Aid (AiA) of Kshs. 3.3 trillion. We have expenditure estimates of Kshs. 4.239.9 trillion, meaning that we are already in a deficit of close to Kshs. 876 billion, and that causes a fiscal deficit of about 4.5% of our GDP in the next financial year,” he stated.

“I am mentioning these figures because it's important that even as we embark on the mediation on the Senate amendments to the Division of Revenue Bill, I urge our Governors to bear in mind the figures we are talking about,” he added.

The Committee Vice-Chairperson, Hon. (Dr.) Robert Pukose, noted that the budget-making process had been highly engaging and called on the National Treasury to expedite exchequer releases to ensure timely implementation of government projects.

Hon. Adan Keynan (Eldas), a Member of the Committee, remarked that the Committee had taken a holistic approach in crafting the budget framework to ensure equitable distribution across regions.

“The 2025/26 budget is crafted within a framework of fiscal consolidation intended to strike a delicate balance between economic growth and curbing the growing public debt,” said Hon. Keynan.

While supporting the report, the Minority Whip, Hon. Millie Odhiambo (Suba North), commended thebconsideration of the plight of Universal Health Care workers who have been staging protests outside Parliament.

The Deputy Leader of the Minority, Hon. Robert Mbui (Kathiani), raised concerns over equity in resource allocation, particularly within the Second Schedule. He proposed that future reports include a full breakdown of allocations to each Constituency for Members' assessment.

The House is expected to conclude debate and vote before the Cabinet Secretary for the National Treasury delivers the formal Budget Statement on Thursday next week.