The National Treasury has allocated Ksh.3.1 billion to Konza Technopolis in the 2025/26 financial year, aiming to accelerate the development of Kenya’s flagship smart city. The funds, earmarked for the construction of data centres and smart city facilities, mark a significant step in the government’s ongoing efforts to transform Konza into a regional tech hub.
However, the allocation marks a notable reduction from the previous financial year’s Ksh.5.2 billion, reflecting a broader tightening of the Information, Communication, and Technology (ICT) budget. The overall ICT sector received Ksh.12 billion this year, a drop from the Ksh.16.3 billion in 2024/25.
Despite the cut, the government reaffirmed its commitment to Konza by allocating an additional Ksh.2.3 billion for the construction of the Kenya Advanced Institute of Science and Technology (KAIST), which is poised to become a cornerstone of tech-driven research and innovation at the Technopolis.
Beyond Konza, the 2025/26 budget also focused on bolstering Kenya’s digital infrastructure. Treasury Cabinet Secretary John Mbadi earmarked Ksh.3.7 billion for the Kenya Digital Economy Acceleration Project, Ksh.689 million for the establishment of digital hubs across the country, and Ksh.750 million for the maintenance and rehabilitation of the National Optic Fiber Backbone Infrastructure (NOFBI). Other key allocations include Ksh.333.2 million for Government Shared Services and Ksh.382 million for the Digital Superhighway initiative.
The budget supports a broader digital transformation agenda, including the expansion of last-mile fibre connectivity, digitisation of public services, and the development of an e-government procurement platform. These investments are complemented by the Kenya Revenue Authority’s (KRA) digitisation push, featuring tools like auto-populated VAT returns, electronic rental income tax systems, and enhanced integration with fuel sector tax systems through the forecourt eTIMS platform.
Overall, while the Education sector claimed the largest portion of the budget at Ksh.702.7 billion, the combined Energy, Infrastructure, and ICT sectors followed with Ksh.535.6 billion an increase from the previous year’s Ksh.444.3 billion underscoring the government’s continued focus on smart growth and digital inclusion.
