President William Ruto signed into law the Supplementary Appropriations Bill (National Assembly Bill No. 16 of 2026), significantly increasing government spending to address emerging national priorities.
The law, passed by the National Assembly on April 2, 2026, regularizes expenditures incurred under Article 223 of the Constitution of Kenya and realigns the budget to cater for urgent needs including security operations, disaster response, personnel costs, and key infrastructure projects.
The supplementary budget raises total government expenditure for the 2025/2026 financial year by Sh393.1 billion, pushing the overall budget from Sh4.301 trillion to Sh4.695 trillion—a 9.1 percent increase.
Of the additional allocation, Sh363.9 billion goes to the National Government, while Sh29.3 billion is directed to Consolidated Fund Services.
The adjustments include Sh229.4 billion in increased recurrent expenditure and Sh134.5 billion in development spending.
A further Sh41.3 billion already spent under Article 223 has also been approved, largely covering security operations and emergency interventions in Arid and Semi-Arid Lands.
The security sector emerged as the biggest beneficiary, receiving Sh60 billion to boost operations, modernize policing systems, and enhance surveillance infrastructure.
The Independent Electoral and Boundaries Commission has also been allocated Sh2.9 billion to clear pending legal bills.
Education received a substantial boost, with Sh24.2 billion allocated to the Teachers Service Commission to address salary shortfalls and health insurance.
Additional funds have been directed to university arrears, student loans through HELB, and institutional support including funding for Moi University.
In the health sector, the government has set aside funds to clear debts of the defunct NHIF, support medical interns, expand vaccination programmes, and upgrade health facilities.
Among the beneficiaries is Moi Teaching and Referral Hospital, which receives Sh2.5 billion.
The budget also allocates Sh25 billion to the Affordable Housing Programme and Sh4.5 billion for road projects under the Horn of Africa Gateway initiative.
Agriculture has been allocated over Sh17 billion, including Sh10 billion for fertilizer subsidies aimed at boosting food production.
Environmental conservation efforts have also been funded, with allocations for tree planting, watershed restoration, and blue economy initiatives.
To finance the expanded budget, the government plans to enhance non-tax revenue streams such as privatization and securitization, while strengthening tax collection through increased funding to the Kenya Revenue Authority.
The supplementary budget is expected to support critical government services, strengthen key sectors of the economy, and advance the administration’s development agenda while maintaining fiscal stability.
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