Treasury Cabinet Secretary John Mbadi today presented the 2025/2026 national budget in Parliament, marking his first budget statement since taking office. His Ksh.4.2 trillion budget outlines the government’s financial strategy for the upcoming fiscal year, focusing on revenue generation, debt management, and key sector allocations.
The government plans to finance the budget through tax collection, levies, grants, and borrowing. The Kenya Revenue Authority (KRA) must collect Ksh.2.7 trillion, covering 64% of the total budget. Additionally, the government expects Ksh.560 billion from fees and levies, raising total revenue to Ksh.3.3 trillion. However, this leaves a Ksh.900 billion deficit, which officials intend to bridge through borrowing, Ksh.592 billion locally and Ksh.284 billion externally.
Mbadi’s budget prioritizes education, infrastructure, and healthcare, allocating significant funds to these sectors. Education receives Ksh.701 billion, accounting for 28% of the total budget. Infrastructure and ICT take Ksh.500.7 billion, while healthcare secures Ksh.136.8 billion. Meanwhile, the agricultural sector, critical for rural development, gets Ksh.78 billion, including Ksh.8 billion for the fertilizer subsidy program.
Debt repayment emerges as a major focus, with officials setting aside Ksh.1.34 trillion to service existing loans, more than double the counties’ allocation of Ksh.405.1 billion. The Executive controls Ksh.2.497 trillion, while Parliament and the Judiciary receive Ksh.47.9 billion and Ksh.27.7 billion, respectively.
Lawmakers voice concerns over Kenya’s growing debt burden and demand a leaner budget to curb excessive borrowing. Economic analysts argue that although the budget reflects fiscal discipline, its success hinges on effective revenue collection and prudent spending.
