Kenya’s Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, is set to deliver his first-ever national budget on June 12, 2025, marking a historic moment for the former Opposition stalwart turned Treasury boss. The budget, which outlines spending plans of at least Sh4.23 trillion for the 2025/26 fiscal year, will be presented before Parliament at 3 p.m.
This budget comes amid significant economic challenges, including a debt-laden economy and lingering public discontent following last year’s protests against the Finance Bill. For Mbadi, this moment is not only a professional milestone but also a critical political test, as he seeks to steer the country through turbulent financial waters.
The proposed budget represents a significant increase from the Sh3.98 trillion in the previous fiscal year. Revenue projections stand at Sh3.39 trillion, with ordinary revenue expected to reach Sh2.84 trillion, bolstered by ongoing tax reforms. The budget sets aside Sh3.1 trillion for recurrent expenditure, Sh725.1 billion for development, and Sh436.7 billion for county transfers.
Education remains a top priority in the 2025/26 budget, receiving the largest allocation of Sh701 billion. Of this, Sh377 billion is earmarked for teacher salaries, Sh55 billion for free day secondary school capitation, Sh41 billion for Higher Education Loans Board (HELB), and further allocations for university scholarships, school feeding programmes, and vocational training.
A key shift in budget formulation is the adoption of zero-based budgeting (ZBB), a model where every expense must be justified anew each fiscal year. This marks a departure from the traditional incremental budgeting and is expected to enhance fiscal discipline and efficiency.
The Executive will receive Sh2.7 trillion, while Parliament and the Judiciary will receive Sh42 billion and Sh25.6 billion respectively. County governments will get Sh405 billion, down from Sh410 billion in the previous year.
In a public notice dated January 15, 2025, Mbadi invited Kenyans to participate in shaping the budget, emphasizing the importance of public input under the Public Finance Management Act, 2012. The invitation reflects a broader push toward inclusive and transparent governance.
