By Linda Muhanji
National Treasury Cabinet Secretary John Mbadi will on Thursday, June 12, 2025, present the government’s Ksh 4.239 trillion Budget for the 2025/2026 Financial Year before the National Assembly, marking his first official Budget Day address since assuming office.
Anchored on President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA) and the long-term goals of Vision 2030, the ambitious budget outlines the government’s spending priorities amid fiscal pressures and a modestly rebounding economy.
The gross expenditure is divided across three main components: Ksh 1.79 trillion has been earmarked for recurrent expenditure, Ksh 1.337 trillion for Consolidated Fund Services (CFS), and Ksh 707.8 billion for development expenditure.
Education Leads Sectoral Allocations
Education has emerged as the top beneficiary, receiving Ksh 701.1 billion — accounting for 28.1 percent of the national government’s budget. The allocation will fund capitation grants, teacher remuneration, and expansion of infrastructure in both basic and higher education sectors.
The Energy, Infrastructure, and ICT sector follows with Ksh 500.7 billion, including Ksh 195 billion for roads, Ksh 119 billion for housing and urban development, and Ksh 92 billion for energy and petroleum projects.
Other notable allocations include Ksh 251 billion for national security and Ksh 136.8 billion for the health sector. Of the health budget, Ksh 54 billion will support referral services, while Ksh 10 billion is allocated to chronic and emergency health interventions under the Universal Health Coverage (UHC) framework.
Agriculture and MSMEs Get Boost
To strengthen food security and agro-industrial growth, the agriculture sector is set to receive Ksh 78 billion. Key initiatives include a Ksh 8.2 billion fertiliser subsidy and Ksh 10.2 billion for agricultural value chain development.
In a push to spur job creation and enterprise growth, over Ksh 12 billion has been allocated to support Micro, Small and Medium Enterprises (MSMEs), including the development of County Aggregation and Industrial Parks. The MSME sector currently contributes about 24 percent of Kenya’s GDP.
Devolution and Housing Plans
County governments are set to receive an equitable share of Ksh 405.1 billion, which aims to enhance service delivery at the grassroots level. The budget also prioritizes the affordable housing program, with plans to deliver more than 215,000 housing units and 94,000 hostel beds. The initiative is projected to generate significant employment, particularly among the youth.
Investments in Digital Economy
The government will invest Ksh 3.7 billion under the Kenya Digital Economy Acceleration Project. The funds will be used to install 35,000 kilometres of fibre optic cable, connect 43,000 public institutions, and set up 15,000 Wi-Fi hotspots, in a bid to boost digital inclusion and ICT access across the country.
Economic Outlook and Debt Concerns
The 2025/2026 Budget is premised on a projected GDP growth rate of 5.3 percent, an increase from 4.7 percent in 2024. The government expects growth to be driven by improved performance in agriculture, tourism, construction, and ICT sectors.
Budget and Appropriations Committee Chairperson Samuel Atandi emphasized the need for fiscal prudence: “This budget must not only support growth but also safeguard the country from debt vulnerabilities.”
Parliamentary debate on the estimates began last week, with MPs expected to scrutinize how the government plans to fund the expansive spending plan amid a tightening fiscal environment. All eyes will be on CS Mbadi as he outlines the financing strategy during his much-anticipated address on June 12.
0 $type={facebook}:
Post a Comment
Note: Only a member of this blog may post a comment.