Parliament has approved the 2026/27 national budget, setting in motion one of the country’s largest public spending frameworks in recent years, with education, health, and housing emerging as the biggest beneficiaries.
The National Assembly, in a sitting held on Thursday, June 4, passed the Estimates of Revenue and Expenditure alongside the Medium-Term Budget Framework, clearing the way for the Appropriation Bill that will guide government spending in the new financial year.
Education took the lion’s share of the budget, receiving a massive Ksh781.4 billion. A significant portion of this allocation will go towards strengthening basic education, technical training institutions, and universities across the country.
A key highlight of the education budget is the Ksh4.9 billion set aside to transition 20,000 intern teachers into permanent and pensionable terms under the Teachers Service Commission (TSC). The move is expected to improve staffing levels in public schools and enhance service delivery in the education sector.
Higher education also received a boost, with Ksh56.7 billion allocated to the Higher Education Loans Board (HELB) to support thousands of university and college students struggling with tuition and upkeep costs.
The health sector was allocated Ksh175.5 billion, with Parliament emphasizing the government’s Universal Health Coverage (UHC) agenda and the expansion of primary healthcare services at the community level.
Within the health allocation, Ksh19.1 billion was directed to the Primary Healthcare Fund, while Ksh4 billion was set aside for the Emergency, Chronic and Critical Illness Fund to cater for patients requiring specialized and urgent medical attention. Additionally, Ksh18.5 billion was allocated to the Global Fund Programme to sustain the fight against HIV/AIDS, malaria, and tuberculosis.
Affordable housing also featured prominently in the budget, receiving Ksh138.2 billion. Of this amount, Ksh50 billion has been earmarked for the Affordable Housing Programme, which aims to accelerate construction projects, create employment opportunities for young people, and support the upgrading of informal settlements.
Lawmakers further approved Ksh16.3 billion for rural electrification and Ksh7.5 billion for national grid expansion, targeting improved access to electricity in underserved regions across the country.
However, MPs also raised concern over the country’s rising debt burden, noting that debt servicing is projected to reach Ksh1.1 trillion, a figure that continues to strain public finances.
The House also endorsed the rollout of the Electronic Government Procurement (eGP) system, a digital platform expected to enhance transparency, curb corruption, and reduce wastage in government spending.
With the budget now approved, attention shifts to implementation as ministries and agencies prepare to roll out programmes aimed at improving service delivery and economic growth nationwide.
