National Assembly approves BPS, sets National spending at kshs 2.52 trillion and stringent financial resolutions

𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲 𝐂𝐡𝐚𝐦𝐛𝐞𝐫
𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝐌𝐚𝐫𝐜𝐡 𝟏𝟐𝐭𝐡 𝟐𝟎𝟐𝟓

The National Assembly has approved the Budget Policy Statement (BPS) for the 2025/2026 financial year, setting the National Government budget ceiling at Kshs. 2.523 trillion.

The allocation includes Kshs. 2.44 trillion for the Executive, Kshs. 49.48 billion for Parliament, and Kshs. 26.75 billion for the Judiciary. Additionally, lawmakers endorsed Kshs. 405.07 billion for county government equitable share and an allocation of Kshs. 7.85 billion to the Equalization Fund.

Majority Leader Hon. Kimani Ichung’wah lauded the BPS for emphasizing fiscal consolidation, which will stabilize public debt and ensure funds are available for development programs.

"I'm happy that even this BPS has laid special emphasis on fiscal consolidation to reduce our public debt vulnerabilities while providing fiscal space to deliver on essential goods and services," Hon. Ichung’wah stated.

He further highlighted the economic recovery, stating, "This BPS has been prepared on the backdrop of an economy that is rising and recovering steadily. indeed, we can now proudly say, our economy has stabilized."

In its Report, the Liason Committee directed the State Department for Higher Education and Research to finalize the revision of the higher education funding model, and the State Department for TVET is to develop guidelines on the management of TVET instructors, both by June 30, 2025.

Hon. Eve Obara stressed the urgency of addressing challenges faced by students under the new funding model. "I have noted that this matter has been raised and that the Department has been given a deadline of 30th June to sort it out," she said.

Several lawmakers raised concerns about equity in budget distribution, particularly regarding the Equalization Fund and resource allocation formulas. The Equalization Fund, designed to address regional disparities, will receive Ksh 7.852 billion, consistent with the latest audited revenues, with an additional Ksh 2.747 billion allocated to clear arrears.

Hon. Timothy Toroitich criticized changes to the Equalization Fund formula, arguing, "A law that was meant to uplift historically marginalized areas has been altered to benefit regions that were not originally meant to receive these funds."

Similarly, Hon. Robert Gichimu called for a population-based approach to resource allocation, saying, "We should not only look at geographical allocations but also the population aspect, as population puts pressure on resources."

Speaking on the issue of tax collection Hon. Jared Okelo advocated for a broader tax base. "It is high time we expanded our tax base. The informal sector holds a huge chunk of money, yet no one has designed the best strategy to tap into these revenues," he remarked.

The 2025/26 Budget Policy Statement paves way for the Budget Estimates, set to be tabled in the May 2025.

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