The 2025/26 Finance Bill, recently passed by Parliament and now awaiting presidential assent, has emerged as one of the most publicly engaged and widely debated pieces of legislation in Kenya’s history.
Treasury Cabinet Secretary John Mbadi facilitated an inclusive and open platform for public participation, enabling citizens from diverse backgrounds — including the youth, small-scale entrepreneurs, informal sector players, and everyday Kenyans — to share their views, raise concerns, and propose recommendations.
In response to the extensive feedback received, several controversial provisions — such as the proposed access to personal data by KRA and the introduction of certain new taxes — were either withdrawn or clarified.
Accordingly, the national budget places significant emphasis on development, with substantial allocations toward key sectors such as infrastructure, education, healthcare, affordable housing, and support for MSMEs.
Here are some highlights of the 2025/26 Budget sector gains
Transport and infrastructure
Over Ksh 318 billion allocated to road construction, rural electrification, last- mile connectivity, and digital infrastructure (fiber and Wi-Fi) and market spaces.
Education
Education received the highest allocation of approximately Ksh 701.1 billion.
The government has also promised investment support for free basic education, TVET training, Junior secondary school transition, capitation, school feeding, and exam subsidies.
Health
Health will receive Ksh 138.1 billion to drive Universal Health Coverage (UHC).
Allocation targets include county health functions, NHIF transition to SHIF, disease surveillance, cancer centers, recruitment of staff, and procurement of medical supplies.
Housing & urban development
The sector has been allocated Ksh120.2 billion to scale up the Affordable Housing Programme (AHP), support slum upgrading, urban infrastructure, police/prison housing, footbridges, mortgage subsidies and tenant-purchase schemes and servicing of land and infrastructure for housing.
Security
Security has been allocated Ksh 464.9 billion for National Police Service, military, and intelligence services.
The gvernment is also focused on modernization of military equipment, operations and maintenance, personnel remuneration and welfare and training and strategic installations
Agriculture & food security
Agriculture and food security has been allocated Ksh 54.6 billion with priority areas including fertilizer subsidies, irrigation, agro-processing, value chain support, livestock and dairy, fisheries and food resilience.
Social protection
At least Ksh 41.3 billion has been allocated to cash transfers for the elderly, orphans, PWDs, youth empowerment and women’s enterprise funds.
Digital economy
Digital economy will receive a significant boost of up to Ksh 141 billion to support internet connectivity, digital public services, Konza Technopolis, and e-government platforms.
Manufacturing and MSMEs
Manufacturing and MSMEs have been allocated Ksh 18 billion, mostly towards agro-industrial parks, Hustler Fund, youth enterprise, and SMEs.
County allocations
Counties have been allocated Ksh 415.3 billion allocated for county governments, showing commitment to devolved service delivery.
AFCON 2027
In preparation for hosting the 2027 AFCON, Ksh21.7 billion was allocated to renovate and upgrade key stadiums including Kasarani, Nyayo, and Kipchoge Keino, construct new sports infrastructure, logistics, and sports talent development.
Read: Here’s How The Govt Will Spend Ksh4.29 Trillion In 2025/26 Budget
>>> 2025 Budget: Govt Seeks to Cut Spending by Over Ksh300 Billion
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