- Kenya’s 2025/26 budget estimates increased to KSh 4.26 trillion, from KSh 3.98 trillion in the previous financial year, with estimates of revenue being set to KSh 3.39 trillion
- The government intends to spend KSh 3.1 trillion at regular costs, KSh 725.1 billion for development projects, and KSh 436.7 billion for county allocation
- Education will receive the largest part of the KSh 701 billion budget, although Treasury Prime Minister Chris Kiptoo noted that this amount still does not meet the sector’s financial requirements
The Ministry of National Treasury and Economic Planning has officially announced that the Secretary of the Cabinet John Mbadi He will submit his first national budget report for the 2025/26 financial year on Thursday, June 12, 2025.
Source: UGC
According to a public notice issued by the ministry, the budget statement will be presented to parliament starting at 3:00 am, marking an important step for Mbadi, who was appointed a treasurer in the end of 2024.
The expected budget is largely rising at a time when the government is under high pressure to address the economic issues being witnessed, including increased public debt, unemployment, and the cost of living affecting millions of Kenyans.
Stakeholders of various sectors will be closely monitoring how the treasury is governed by Mbadi planning to allocate resources and stimulate economic growth.
Mbadi, an experienced politician and a minority leader in the national parliament, is expected to explain the priorities of government financial policies, tax measures and development plans.
What to expect in the 2025/26 budget
Previously TUKO.co.ke reported that the national treasury reported the 2025/26 budget policy, adding a total budget estimate to KSh 4.26 trillion from KSh 3.98 trillion in the last financial year.
Revenue is estimated to reach KSh 3.39 trillion, with normal revenue expected to reach KSh 2.84 trillion, aided by the ongoing tax reform.
The government plans to use KSh 3.1 trillion for normal expenditure, KSh 725.1 billion for development, and KSh 436.7 billion in county transfer.
Treasury Secretary -General Chris Kiptoo explained that the proposed budget for the 2025/2026 financial year is introducing education, which will receive the largest allocation of KSh 701 billion.
He emphasized that despite this allocation, it still has a shortage of real needs in the education sector, focusing on a large allocation such as KSh 377 billion for teachers’ salaries, KSh 55 billion for free high school lessons, KSh 41 billion for Helbwith university funding funding, primary school students and primary schools, feeding students at work, school teachers, tvet, and television.
Despite increased expenditure, the financial deficit is expected to decrease to KSh 831 billion, funded through internal and external borrowing.
The 2025 Financial Bill proposes a number of tax changes, including increasing the maximum amount of travel allowance, updating pension language, and expanding taxes on digital revenue to enhance equity and pursue taxes.
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Source: TUKO.co.ke
