Kenya’s National Assembly is preparing to debate the 2025/26 fiscal year budget estimates, which have been revised downward to Ksh 4.2 trillion in a bid to contain the country’s rising public debt. The Budget and Appropriations Committee tabled the report on Wednesday, signaling a renewed focus on fiscal discipline, debt sustainability, and prioritised development.
The trimmed budget marks a slight reduction from the Ksh 4.3 trillion allocation in the previous financial year. It reflects efforts to rein in borrowing, with the committee outlining a shift towards fiscal consolidation and prudent spending beginning July 1, 2025.
Of the proposed Ksh 4.2 trillion, Ksh 1.8 trillion has been earmarked for recurrent expenditure, covering salaries, government operations, and ongoing programs. Development expenditure is projected at Ksh 707.8 billion, focusing on long-term infrastructure and investment projects.
The Kenya Revenue Authority (KRA) has been tasked with collecting Ksh 3.3 trillion in total revenue, which includes both ordinary revenue and Appropriations-in-Aid. Total government spending is capped at Ksh 2.53 trillion.
Education continues to command the largest share of the budget with Ksh 701.1 billion, equivalent to 28.1 percent of the total. The energy, infrastructure, and ICT sectors follow closely with a combined allocation of Ksh 500.7 billion. The health sector will receive Ksh 136.8 billion, while the agriculture sector has been allocated Ksh 78 billion, including Ksh 8 billion specifically for the fertiliser subsidy programme.
A substantial Ksh 1.34 trillion has been proposed for debt repayment, underlining the government’s intent to manage ballooning obligations. The Executive will manage the lion’s share of the budget at Ksh 2.497 trillion. Parliament is allocated Ksh 47.9 billion, while the Judiciary and the Judicial Service Commission are set to receive Ksh 27.7 billion.
Counties will benefit from an equitable share of Ksh 405.1 billion if the proposals are approved.
The National Assembly is set to begin debating the estimates next week ahead of the formal budget presentation scheduled for Thursday. This budget is expected to play a pivotal role in shaping Kenya’s economic path over the next fiscal year.
