Parliament has officially been presented with the national budget estimates for the 2025/2026 Financial Year, with a proposed total expenditure of Sh4.239 trillion.
The report was tabled by the Chairperson of the Budget and Appropriations Committee, Hon. Samuel Atandi (Alego Usonga), alongside a medium-term outlook that aims to balance development goals with fiscal responsibility.
Out of the total expenditure, Sh1.79 trillion has been earmarked for recurrent expenditure to cater for government operations, including payment of public service salaries and essential services. Development spending will take up Sh707.8 billion, focusing on infrastructure, economic empowerment, and enhancing service delivery. Additionally, Sh1.337 trillion will go toward Consolidated Fund Services (CFS), with Sh1.098 trillion allocated for debt interest payments and Sh239.6 billion for pensions and constitutionally independent offices.
County governments will receive Sh405.1 billion as equitable share to support devolved functions and services.
Hon. Atandi noted that this year’s budget marks a turning point in fiscal planning, saying, “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.”
In terms of development priorities, more than Sh350 billion has been set aside for key projects under the Bottom-Up Economic Transformation Agenda (BETA), with a focus on inclusive growth and advancing Kenya’s Vision 2030 goals.
The agriculture sector has been allocated Sh8 billion for the fertilizer subsidy program, another Sh8 billion for sugar reforms, Sh2 billion each for the Coffee Cherry Fund, crop diversification initiatives, and livestock insurance programmes.
In education, Sh28.9 billion will go to Junior Secondary Schools, Sh51.8 billion to secondary education, Sh5.9 billion to cater for examination fees, Sh17.2 billion for the new university funding model, and Sh41.5 billion to the Higher Education Loans Board (HELB). Another Sh7.2 billion has been allocated for the recruitment of Junior Secondary School intern teachers.
The energy sector will receive Sh1.1 billion for the third phase of the Last Mile electricity connectivity programme, Sh4.35 billion for constituency electrification projects, and a substantial Sh50 billion to power public facilities across the country.
On healthcare, Sh4.6 billion has been set aside for the national vaccine programme, Sh1 billion for a new cancer centre at Kisii Level 5 Hospital, Sh8 billion for the Critical Illness Fund, Sh13 billion for primary healthcare, and Sh4 billion for intern doctors. Community Health Promoters will receive Sh3.2 billion, while Sh6.1 billion has been allocated for the conversion of Universal Health Coverage (UHC) workers to permanent and pensionable terms. Hon. Atandi noted that the conversion of these health workers will follow a full audit to determine the number still in service.
The water and industry sectors have also been prioritized, with Sh15 billion allocated for irrigation projects, Sh36.4 billion for water supply projects, and Sh4.6 billion for County Aggregation Industrial Parks (CAIPs). Land settlement efforts will receive Sh3.8 billion, while Sh3.5 billion has been allocated for the National Youth Opportunities Towards Advancement (NYOTA) programme.
Under the blue economy, Sh2.475 billion will go toward marine fisheries and socio-economic development, while aquaculture business development has been allocated Sh2.406 billion.
Housing and urban development has received a major boost with Sh95 billion set aside for the Affordable Housing Fund. The Kenya Urban Programme (KenUP) has been allocated Sh13.4 billion, and Sh7.197 billion will be used for the second phase of informal settlement upgrading. A further Sh16.5 billion will go into social and physical infrastructure projects, while Sh3.5 billion has been allocated for police housing.
In his closing remarks, Hon. Atandi urged fellow Members of Parliament to support the estimates, saying the allocations are in line with the government’s development priorities of inclusive growth, job creation, food security, housing, healthcare, and digital transformation.
“This budget underscores our commitment to transformation through job creation, food security, housing, healthcare, and digital infrastructure. I call upon Honourable Members to support these allocations for a more prosperous and equitable Kenya,” he said.
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