The Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, on Thursday presented the 2025/2026 Budget Highlights to the National Assembly, unveiling a KSh 4.239 trillion financial blueprint anchored on the Bottom-Up Economic Transformation Agenda (BETA) and Vision 2030 goals.
In his address, Hon. Mbadi said the budget seeks to reaffirm the government’s commitment to economic recovery, improved service delivery, and protection of socio-economic rights, including food, housing, healthcare, education, water, and dignified work.
“This budget speaks to the rights guaranteed by our Constitution and aims to ensure every Kenyan can live with dignity and access essential services,” said the Cabinet Secretary.
Economic Recovery and Fiscal Prudence
Kenya’s economy, Mbadi reported, has demonstrated resilience, growing at an average of 5.2% between 2023 and 2024—above the global and Sub-Saharan averages of 3.3% and 3.8%, respectively. The government credited this growth to structural reforms, targeted investments, and a robust post-pandemic recovery framework.
However, amid growing public concern over the rising public wage bill, the government will implement strict fiscal controls. Key measures include the full rollout of a unified human resource management system across all public entities by July 2025 and the continued streamlining of allowances in public service through the Salaries and Remuneration Commission.
“We aim to ensure the public compensation bill is transparent, equitable, and fiscally sustainable,” said Mbadi.
Reforms in State Corporations
Recognizing persistent inefficiencies in State Corporations, the Cabinet approved sweeping reforms in January 2025. These include the merger of 42 corporations into 20, the dissolution of 25 non-viable entities, and restructuring of six others. Furthermore, 13 professional bodies will be declassified as State Corporations, ending their reliance on the exchequer.
“These reforms are a critical step in restoring efficiency, accountability, and service delivery while reducing the fiscal burden on taxpayers,” Mbadi told lawmakers.
Sectoral Achievements and Allocations
Mbadi used the budget speech to highlight key achievements since the adoption of BETA, outlining successes in agriculture, housing, health, energy, and education:
Agriculture:
Over 6.5 million farmers have benefited from the fertilizer subsidy program, resulting in a 67% drop in fertilizer prices and a 38.9% increase in maize production, from 61.7 million bags in 2022 to 85.7 million in 2024.
Financial Inclusion:
The Hustler Fund has disbursed over KSh 75 billion to 26 million borrowers. The fund has also mobilized KSh 4.5 billion in savings, with 4.5 million borrowers now eligible to graduate to mainstream financial institutions.
Health Sector:
With Universal Health Coverage (UHC) at the center of its agenda, the government increased health sector funding to KSh 108.1 billion, including KSh 8 billion for chronic and critical illness treatment, KSh 17.3 billion for disease prevention through the Global Fund, and KSh 42.4 billion for referral hospitals.
More than 22 million Kenyans are now registered under the newly established Social Health Authority (SHA), a 175% increase from the NHIF era.
“This is a milestone that brings us closer to achieving equitable and accessible healthcare for all,” said Mbadi.
Housing and Infrastructure:
Since September 2022, 2,379 affordable housing units have been completed, with 11,000 more nearing completion and over 148,000 currently under construction across 43 counties.
To support infrastructure development, 1,574 km of roads and 129 bridges have been built, while 212 km of roads have been rehabilitated and 126,177 km are under maintenance.
Education:
Reforms in the education sector include the rollout of a student-centered higher education funding model and the recruitment of 76,000 teachers to improve learning outcomes.
The Kenya Education Management Information System (KEMIS) now offers a central repository for student records from early childhood to tertiary level.
Energy and Digital Economy:
Kenya’s electricity generation has increased by 167 MW, bringing total installed capacity to 3,243 MW. Broadband coverage has expanded by 53% to 13,621 km, with 285 digital hubs established and over 20,000 government services digitized.
“We are driving inclusive digital transformation and reducing service delivery gaps across the country,” said the Cabinet Secretary.
Social Protection:
Through the Inua Jamii programme, support for vulnerable households has increased by 65% since 2022. More than 1.2 million senior citizens, 59,637 persons with disabilities, and 428,421 vulnerable families are now under support.
Healthcare Investments in the 2025/26 Budget
Mbadi outlined comprehensive allocations to strengthen health systems and expand access:
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KSh 8 billion for the Emergency, Chronic, and Critical Illnesses Fund
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KSh 1 billion for a new cancer center at Kenyatta National Hospital
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KSh 42.4 billion for referral hospitals across the country
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KSh 5.2 billion for recapitalizing KEMSA
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KSh 4.3 billion for medical interns
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KSh 3.2 billion for community health promoters
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KSh 500 million for reproductive health commodities
The government will also invest in digital infrastructure and creative economy integration within Kenya Medical Training Colleges (KMTCs), and in training and deploying health personnel nationwide.
Looking Ahead
While lauding the milestones achieved, Mbadi acknowledged that challenges remain. He reaffirmed the government’s commitment to enhancing the quality of life for all Kenyans and sustaining economic momentum through sound fiscal policy and citizen-centered reforms.“We are laying the foundation for a stronger, more equitable Kenya. But we are not there yet. This budget is a call to action—to work harder, smarter, and together,” he concluded.
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