National Budget for fy2025/26 set at kshs. 4.239.9 trillion as parliament reviews expenditure priorities

National Assembly Chambers.

The Chairperson of the Budget and Appropriations Committee, Hon. Samuel Atandi (Alego Usonga), has tabled the Committee’s report on the Budget Estimates for the Financial Year 2025/2026 and the medium-term outlook, outlining a proposed total expenditure of Kshs. 4.239.9 trillion.

The allocation includes:

• Kshs. 1.79 trillion for recurrent expenditure, to fund government operations, public service salaries, and essential services.

• Kshs. 707.8 billion for development spending, aimed at infrastructure, economic empowerment, and service delivery.

• Kshs. 1.337 trillion for Consolidated Fund Services (CFS), which covers Kshs. 1.098 trillion in debt interest payments and Kshs. 239.6 billion for pensions and independent constitutional offices.

Additionally, Kshs. 405.1 billion has been allocated as an equitable share to county governments to support devolved functions.

Hon. Atandi emphasized that the 2025/26 Budget marks a shift toward greater fiscal realism.

“For the first time, the revenue projection from the National Treasury is lower than that of the Parliamentary Budget Office. This signals a more realistic approach to budgeting, grounded in actual revenue collection capacity,” he said.

Key Sectoral Allocations

Development Projects:

Over Kshs. 350 billion has been set aside for strategic projects aligned with the Bottom-Up Economic Transformation Agenda (BETA), intended to drive inclusive growth and support Vision 2030 targets.

Agriculture:

• Kshs. 8 billion – Fertilizer Subsidy

• Kshs. 8 billion – Sugar Reforms

• Kshs. 2 billion – Coffee Cherry Fund

• Kshs. 2 billion – Crop Diversification

• Kshs. 2 billion – Livestock Insurance

Education:

• Kshs. 28.9 billion – Junior Secondary Schools

• Kshs. 51.8 billion – Secondary Education

• Kshs. 5.9 billion – Examination Fees

• Kshs. 17.2 billion – University Funding Model

• Kshs. 41.5 billion – HELB

• Kshs. 7.2 billion – Recruitment of JSS Intern Teachers

Energy:

• Kshs. 1.1 billion – Last Mile Electricity Connectivity (Phase III)

• Kshs. 4.35 billion – Constituency Electrification

• Kshs. 50 billion – Electricity for Public Facilities

Health:

• Kshs. 4.6 billion – Vaccine Programme

• Kshs. 1 billion – Cancer Centre at Kisii Level 5 Hospital

• Kshs. 8 billion – Critical Illness Fund

• Kshs. 13 billion – Primary Healthcare

• Kshs. 4 billion – Intern Doctors

• Kshs. 3.2 billion – Community Health Promoters

• Kshs. 6.1 billion – Conversion of UHC Workers to Permanent and Pensionable

“The conversion of UHC workers to permanent status will follow a full audit to confirm how many remain in service,” said Hon. Atandi.

Water and Industry:

• Kshs. 15 billion – Irrigation Projects

• Kshs. 36.4 billion – Water Projects

• Kshs. 4.6 billion – County Aggregation Industrial Parks (CAIPs)

• Kshs. 3.8 billion – Land Settlement

• Kshs. 3.5 billion – National Youth Opportunities Towards Advancement (NYOTA)

Blue Economy:

• Kshs. 2.475 billion – Marine Fisheries & Socio-Economic Development

• Kshs. 2.406 billion – Aquaculture Business Development

Housing and Urban Development:

• Kshs. 95 billion – Affordable Housing Fund

• Kshs. 13.4 billion – Kenya Urban Programme (KenUP)

• Kshs. 7.197 billion – Informal Settlement Upgrading (Phase II)

• Kshs. 16.5 billion – Social and Physical Infrastructure

• Kshs. 3.5 billion – Police Housing

In his concluding remarks, Hon. Atandi urged MPs to back the estimates, citing their alignment with the government's priority of inclusive growth and fiscal sustainability.

“This budget underscores our commitment to transformation through job creation, food security, housing, healthcare, and digital infrastructure. I call upon Honourable Members to support these allocations for a more prosperous and equitable Kenya,” he said.