Kenya's Treasury Breaks Down Allocation to Ministries in Proposed KSh 4.2 Trillion Budget
- Treasury Principal Secretary (PS) Chris Kiptoo explained the proposed KSh 4.2 trillion budget for the 2025/2026 financial year
- The Ministry of Education will be the largest recipient, earmarked for KSh 701 billion, while infrastructure was allocated KSh 501 billion
- The Health Ministry was allocated KSh 136 billion to strengthen healthcare systems and services nationwide
TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
The 2025/2026 Budget Policy Statement (BPS), published by the National Treasury, shows that the total budget forecasts have increased to KSh 4.26 trillion from KSh 3.98 trillion in the fiscal year (FY) 2024/2025.
Source: Twitter
According to the fiscal framework outlined by the BPS, overall revenue, including Appropriation-in-Aid (A-i-A), is expected to increase from KSh 3.07 trillion to KSh 3.39 trillion (17.6% of Gross Domestic Product) in FY 2025/2026.
What's the allocation to recurrent and development expenditure?
With ongoing improvements in tax administration and policy to broaden the tax base and increase compliance, ordinary revenue is expected to reach KSh 2.84 trillion.
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The financial statement for the 2025/2026 FY indicates that KSh 3.1 trillion would be allocated to recurrent expenditure.
On the other hand, development expenditure would receive KSh 707.7 billion, while counties would get KSh 405 billion in equitable share.
What's the budget allocation for ministries?
Treasury Principal Secretary (PS) Chris Kiptoo revealed that the Ministry of Education will be the largest recipient, earmarked for KSh 701 billion.
"Education will take the largest share. This is one area that we need to monitor. I do not think that we have provided enough funds for what they require. The budget is for teacher salaries and capitation. KSh 377 billion will go to teacher salaries; KSh 55 billion for capitation for free-day secondary schools, KSh 41 billion goes to the Higher Education Loans Board (HELB), KSh 31 billion goes to capitation for junior secondary schools and KSh 17 billion for university education scholarships," Kiptoo disclosed to NTV.
The PS noted KSh 7.9 billion would be allocated to capitation of primary schools, KSh 7.2 billion for intern teachers, KSh 3 billion (school feeding programme), and KSh 5.2 billion for Technical and Vocational Education and Training (TVET).
TVET scholarships will get KSh 2.5 billion, while KSh 1.6 billion will be used in capacity building for teachers.
The infrastructure's budget (roads, ICT and energy) is set at KSh 501 billion, aimed at enhancing transportation, internet and power networks.
Source: Twitter
The Health Ministry was allocated KSh 136 billion to strengthen healthcare systems and services.
Agriculture, Rural, and Urban Development got KSh 78 billion to boost food security and rural livelihoods, while general economic and commercial affairs (trade and business sectors) were allocated KSh 47 billion to support trade, industry, and economic growth initiatives.
How Treasury plans to raise additional revenue
The Treasury plans to sell over 35 state-owned firms to raise an additional KSh 149 billion.
Among the public companies targeted for sale are KICC, New KCC, Kenya Pipeline, and Kenya Ports Authority.
The state corporations are valued at over KSh 200 billion.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
