Treasury Proposes Ksh287B Increase in Ministerial Spending

The government has proposed an increase in spending for the 2025/26 financial year through the first supplementary budget tabled in Parliament.

Treasury Cabinet Secretary John Mbadi told lawmakers that ministerial expenditure will rise by Ksh 287.4 billion, representing an 11.3 per cent increase from the original approved estimates.

“The gross ministerial expenditure in the full year 2025–26 supplementary estimates number 1 has increased by Ksh 287.4 billion, reflecting an increase of 11.3 per cent from the original approved ministerial estimates exceeding the limit set under Article 223 of the Constitution of Kenya,” Mbadi said.

He noted that the National Treasury is therefore seeking Parliament’s special approval for the 2025/26 Supplementary Estimates No. I understand Article 223(6) of the Constitution.

If approved, the overall budget, including Consolidated Fund Services, will increase by Ksh 316.7 billion, pushing the total national budget for the 2025/26 financial year to Ksh 4.618 trillion, up from the originally approved Ksh 4.26 trillion.

Recurrent expenditure, which caters for salaries and day-to-day government operations, accounts for the largest share of the increase. The allocation under this category will rise by Ksh 201.3 billion.

Development spending will increase by Ksh 86.3 billion to support infrastructure projects and programmes aimed at improving service delivery across various sectors.

Another Ksh 29.3 billion has been added to Consolidated Fund Services, which covers mandatory expenses such as public debt interest payments, pensions and salaries for constitutional office holders.

Mbadi said the adjustments were necessary to address funding shortfalls and emerging priorities across ministries, departments and agencies.

“The National Treasury has received additional expenditure requests to cater for emerging priorities and shortfalls under critical expenditures. Included in the Supplementary Estimates is additional expenditure to cater for salary shortfalls for Ministries, Departments and Agencies,” he said.

The supplementary estimates come at a time when the government is facing increased fiscal pressure, with revenue collection falling short of targets while debt servicing continues to take up a large share of public resources.

Economic disruptions following contested tax changes introduced in 2024 also affected business activity and revenue performance, forcing the government to review spending plans and realign budget priorities.