Members of the National Assembly have begun debate on the proposed Ksh. 4.239.9 trillion national budget for the 2025/2026 Financial Year.

The debate comes ahead of the official Budget Day speech scheduled for Thursday, June 12, 2025, when the Cabinet Secretary for the National Treasury, Hon. John Mbadi is expected to deliver the budget highlights before a joint sitting of Parliament.

2025/26 Estimates of Revenue and Expenditure are aligned to the Kenya Kwanza government Bottom-Up Economic Transformation Agenda (BETA) and Vision 2030 to spur economic recovery through investments in agriculture, infrastructure, healthcare, education, MSMEs, and the digital economy. 

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

The proposed gross expenditure amounts to Ksh. 4.239 trillion, divided as follows:

Recurrent expenditure: Ksh. 1.79 trillion

Development expenditure: Ksh. 707.8 billion

Consolidated Fund Services (CFS): Ksh. 1.337 trillion

Lawmakers' also ensured an increased allocation to support service delivery in devolved units with counties set to receive an equitable share of Ksh. 405.1 billion.

The Education sector takes the lion’s share of the budget, receiving Ksh. 701.1 billion (28.1% of the national government budget), covering capitation grants, teacher salaries, and infrastructure for basic and higher education.

The Energy, Infrastructure and ICT sector was allocated KSh. 500.7 billion, which includes Ksh. 195 billion for roads, Ksh. 119 billion for housing and urban development and Ksh. 92 billion for the energy and petroleum sector.

Key allocations include:

• Health – Ksh. 136.8 billion
• Agriculture - Ksh. 78 billion, including Ksh. 8.2 billion for fertilizer subsidies and Ksh. 10.2 billion for value chain development
• National Security – Ksh. 251 billion

The 2025/2026 Budget is premised on an expected 5.3% GDP growth, up from 4.7% in 2024, driven by improved performance in agriculture, tourism, construction, and ICT. 

The MSME sector, which contributes 24% of GDP, is set to benefit from over Ksh. 12 billion in allocations, including support for County Aggregation Industrial Parks and enterprise recovery programs. 

The Affordable Housing initiative is expected to deliver over 215,000 affordable housing units and 94,000 hostel beds, supporting youth employment and construction sector recovery.

To support the Universal Health Coverage (UHC) agenda, Ksh. 54 billion has been allocated for referral services, Ksh. 16.6 billion for disease control programs, and Ksh. 10 billion for chronic and emergency illness funds.

To accelerate the digital superhighway, Ksh. 3.7 billion has been set aside for the Kenya Digital Economy Acceleration Project, with plans to install 35,000 km of fiber network, connect 43,000 public institutions, and launch 15,000 Wi-Fi hotspots across the country.

The June 12th budget highlights are expected to provide final clarity on how the Treasury intends to fund the ambitious plan amid constrained fiscal space.