MPs Push for Fiscal Discipline in Ksh 4.2 Trillion Budget Proposal

By Juliet Jerotich

Kenya’s National Assembly has begun reviewing a revised Ksh 4.2 trillion budget proposal for the 2025/26 financial year, signaling a renewed push by lawmakers to rein in government spending, manage rising debt levels, and refocus on development priorities.

The revised budget estimates, tabled by the Budget and Appropriations Committee on Wednesday, reflect a marginal reduction from the Ksh 4.3 trillion allocation in the current financial year. Debate on the estimates is scheduled for next week, ahead of the formal budget presentation by the Cabinet Secretary for the National Treasury, expected on Thursday.

The proposed budget framework outlines a firm commitment to fiscal discipline and strategic resource allocation, with legislators calling for reduced reliance on borrowing and better prioritization of national development goals.

Of the total budget, Ksh 1.8 trillion is earmarked for recurrent expenditures—covering salaries, routine government operations, and ongoing programs. Development spending will receive Ksh 707.8 billion, with a clear emphasis on infrastructure, energy, education, and agriculture.

To streamline overall government expenditure, the committee capped public spending at Ksh 2.53 trillion. The Kenya Revenue Authority (KRA) is expected to generate Ksh 3.3 trillion in total revenue, including Appropriations-in-Aid, marking an ambitious but critical effort to boost domestic revenue collection and reduce fiscal deficits.

Education has emerged as the top funding priority, with Ksh 701.1 billion allocated—constituting 28.1% of the entire budget. The energy, infrastructure, and ICT sectors will jointly receive Ksh 500.7 billion, while health is allocated Ksh 136.8 billion. The agriculture sector will get Ksh 78 billion, including Ksh 8 billion dedicated to the fertilizer subsidy program aimed at boosting food production.

To address Kenya’s ballooning public debt, the committee has set aside Ksh 1.34 trillion for debt servicing. County governments will receive Ksh 405.1 billion as their equitable share of national revenue, reinforcing the commitment to devolution and local development.

The Executive will manage Ksh 2.497 trillion of the total budget. Meanwhile, Parliament and the Judiciary have been allocated Ksh 47.9 billion and Ksh 27.7 billion respectively, allowing for oversight and judicial functions to continue uninterrupted.

As debate begins in the National Assembly, MPs are expected to scrutinize spending proposals line by line, with a particular focus on accountability, value for money, and the impact of public investments.

“The goal is to realign our national budget with the realities on the ground. We must invest wisely, spend prudently, and borrow only when necessary,” said a senior member of the Budget Committee.

The final budget will take effect on July 1, 2025, pending approval by Parliament. All eyes are now on legislators as they shape Kenya’s fiscal path amid growing public concern over debt and the need for tangible economic growth.

June 05, 2025