Kenya's Budget Compared to Tanzania's in 2025/26, Nairobi to Spend 3 Times More
- Treasury Cabinet Secretary (CS) John Mbadi is expected to table the KSh 4.26 trillion budget in Parliament on Thursday, June 12
- Apart from Kenya, other East African countries are in the race to pass their spending for the financial year starting July 1, 2025
- Tanzania Finance Minister Mwigulu Nchemba tabled the country's budget, which turned out to be over KSh 3 trillion less than Nairobi's projected spending
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
Kenya will spend more than her East African neighbours in the financial year 2025/26.
Source: UGC
President William Ruto's administration released the budget estimates for the year starting July 1, 2025.
How much will Kenya spend compared to Tanzania?
As East African countries race to pass their spending for the financial year under review, the Tanzanian Ministry of Finance and Planning tabled its budget on Wednesday, June 4.
Members of Parliament in the East African state passed the budget that will see the Samia Suluhu-led government spend TSh 20.19 trillion (KSh 971,293,631,316.35), based on the current exchange rate.
Source: Twitter
Kenya's Cabinet Secretary (CS) for Treasury and National Planning, John Mbadi, is expected to table the KSh 4.26 trillion budget in Parliament on Thursday, June 12.
If members of the August House pass the spending for the year under review, Nairobi will be spending three times more than Dodoma, at KSh 3.28 trillion.
Comparison in terms of tax revenue
Tanzania is projected to spend TSh 19.43 trillion (KSh 936.33 billion) on recurrent expenditure, compared to Kenya's KSh 3.1 trillion.
On development expenditure, Tanzania plans to spend TSh 757.79 billion ( KSh 36.51 billion), compared to Kenya's KSh 725.1 billion.
The East African economic powerhouse will spend an extra KSh 436.7 billion in transfers to devolved governments.
Kenya plans to collect KSh 3.39 trillion through the Kenya Revenue Authority (KRA). However, Tanzania's tax revenue is expected at TSh 34.1 trillion, which is equivalent to KSh 1.64 trillion during the same year under review.
Kenya's economy compared to Tanzania
The difference in Kenya's budget and Tanzania's spending can be attributed to a wide gap in the two countries' economies.
According to the International Monetary Fund (IMF), Kenya is a middle-income country, while Tanzania is ranked among low-income countries in the region.
The Bretton Woods institution projected growth in Kenya's economy to reach 4.8% in 2025.
However, the Tanzanian economy would grow by 6% during the same year under review.
Kenya's GDP is estimated to grow to $132 billion (KSh 17 trillion), while Tanzania's could reach $85.98 billion (KSh 11.12 trillion).
Meanwhile, Uganda also released its budget for the fiscal year 2025/25, which totals USh 40.7 trillion (KSh 1.44 trillion).
Source: TUKO.co.ke
