Kenya’s 2026/27 budget was presented by Cabinet Secretary for Treasury John Mbadi, outlining the KSh 4.82 trillion fiscal plan, focusing on education, agricultural transformation, infrastructure, security and targeted interventions to stimulate economic growth. This is as the economy suffers from the Middle East war effects, hitting the economy is terms of fuel-related cost push inflation.
While reading out the Budget Statement for the Financial Year 2026/27 at the National Assembly on Thursday, June 11, CS Mbadi explained that the budget funding aims at realising the government’s Bottom-Up Economic Transformation Agenda.
At about KSh 4.82 trillion, this will be the largest expenditure plan for the Kenya Government yet. It plans to collect KSh 3.63 trillion from taxes, leaving a KSh 1.1 trillion shortfall.
Under dilemma is a large chunk of the budget spending directed at recurrent expenditure leaving little for development. In the background for treasury is the ballooning public debt and the high cost of interest repayment.
Education
Kenya’s education sector received the largest allocation with Ksh.784.5 billion.
With this, the government seeks to allocate Ksh.424.3 billion for the Teachers Service Commission (TSC), Ksh.136.6 billion for Basic Education, Ksh.163.9 billion for Higher Education and Ksh.58.5 billion for Technical Vocational Education and Training (TVET).
Energy & ICT
To improve energy security, reliability and ICT infrastructure, Kenya’s government has allocated Ksh.531.3 billion to the sectors, to expand access to electricity and increase power generation through investments in grid connectivity, off-grid solutions and renewable energy projects.
Public Administration and Internal Relations
The Public Administration and Internal Relations sector was allocated Ksh.373.7 billion, with the core priority areas comprising devolution support, public service delivery, implementing institutional reforms across government ministries and foreign and diplomatic presence.
Governance, Justice, Law and Order
The Governance, Justice, Law and Order sector in the budget was allocated Ksh.363.9 billion. The sector’s primary spending priorities focus on institutional capacity building, justice delivery, legal reforms, and public administration.
Security
Kenya’s security sector was allocated KSh.316.2 billion, split across the Ministry of Defence, National Police Service, and intelligence, to modernize policing and boost regional stability.
Transport
The Government will continue to invest in the transport sector by injecting KSh.220.4 billion into transportation networks to reduce travel time and logistics costs, making markets more accessible and facilitating the movement of goods and people.
Health
On matters health, the government has allocated KSh.177.2 billion to enhance access to quality and affordable healthcare services. Such programs comprise KSh 19.1 billion for the Primary Healthcare Fund to finance front-line services, KSh 6.4 billion for the vaccines programs and KSh.45.3 billion for Referral Hospitals KSh.3.1 billion will be used to support research at the Kenya Medical Research Institute while KSh.500 million will be channelled towards family planning and reproductive health commodities.
The government also proposed KSh.9.3 billion for medical Interns; KSh.10.9 billion for the Kenya Medical Training Colleges and KSh.3.2 billion for stipends for Community Health Promoters.
In the budget, the State allocated Ksh.121.2 billion towards the environment protection, water and natural resources sector. This funding primarily focuses on climate resilience, sustainable water access, and local environmental management under the Bottom-Up agenda.
Agriculture
On agriculture, rural and urban development, the government targets crop and livestock transformation with a KSh.111.7 billion allocations. This will focus on disease control, genetic improvement, and lowering the cost of basic food items
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