Breakdown of Proposed Ksh4.2 Trillion Budget Allocations for 2025/2026 Financial Year

The National Assembly's Budget and Appropriations Committee has revised the 2025/2026 Budget estimates, which are projected to hit Ksh4.2 trillion.

In the report tabled on Wednesday, June 4, the Executive was allocated Ksh2.497.55 trillion, Parliament was allocated Ksh42.5 billion, while the Judiciary was allocated Ksh26.7 billion.

"The proposed expenditure outlook for FY 2025/26 amounts to Ksh4.239 trillion, the largest portion of Ksh1.789 trillion is allocated to recurrent expenditures, covering essential government operations, salaries, and maintenance of public services," read the report in part. 

"Development expenditures, amounting to Ksh707.8 billion, are directed toward infrastructure projects, social programs, and economic growth initiatives."

Here is the detailed  breakdown of the allocations

‍Education Sector

The education sector will account for the largest share of the budget, at Ksh701.1 billion.

This will fund various programmes such as the school capitation for primary, Junior Secondary Schools, Senior Secondary schools, Technical and Vocational Education and Training, and University institutions; remuneration of teachers, instructors, and lecturers; and development of school and learning infrastructure, among other critical areas in the education sector.

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‍Energy, Infrastructure, and ICT Sector 

This is the sector with the second highest allocation, totaling Ksh500.7 billion.

Out of the Ksh500.7 billion, Ksh195 billion will go towards maintenance, rehabilitation, and construction of new roads.

Housing and urban development projects are proposed to get Ksh119 billion, which includes Ksh95 billion from the affordable housing fund that is used to undertake affordable housing projects.

The energy and petroleum sector will get Ksh92 billion, which will be used for electricity generation, distribution, and last-mile connectivity, and petroleum prices stabilization; the rail and air transport at Ksh46 billion, among others.

Public Administration and International Relations Sector 

The sector will receive Ksh321 billion. 

Out of this Ksh58 billion will go to the National Government Constituencies Development Fund (NG-CDF), as Ksh10.2 billion goes to the equalization fund.

The Kenya Revenue Authority will receive Ksh32 billion, with Ksh11.5 billion going towards financing locally led climate action (FLLCOA).

Ksh13.5 billion for the global fund will go towards health programmes on Malaria, TB, and HIV, as Ksh9.6 billion goes to the subscription to AU and other international organizations, among others.

Also Read: Treasury Announces Plan to Slash PAYE in 2026

‍Governance, Justice, Law and Order Sector

The sector is proposed to receive funding of Ksh276.65 billion. Key allocations for various sectors include;

• National Police Service - Ksh125 billion.
• Correctional Services - Ksh38 billion.
• Internal Security and National Administration -  Ksh35 billion.
• Immigration and Citizen Services - Ksh20.3 billion.
• IEBC - Ksh9.6 billion.
• Ministry of Defence  - Ksh200 billion.
• National Intelligence Service - Ksh51 billion.

‍Health Sector 

The Health sector has a total allocation of Ksh136.8 billion, which includes Ksh54 billion for National Referral & Specialized Services; Ksh16.8 billion for reproductive, maternal, newborn child, and adolescent health services; Ksh13 billion for the Primary Healthcare Fund.

Ksh10 billion will go to the Emergency, Chronic and Critical Illness Fund; Ksh5 billion to KEMSA, Ksh8.8 billion to KMTC, and Ksh4 billion towards Universal Health Care (UHC), among other allocations.

‍Agriculture and Rural Development Sector ‍

• Fertilizer subsidy programme - Ksh8 billion.
• National Agricultural Value Chain Development Project- Ksh10 billion.
• Food Systems Resilience Project - Ksh5.8 billion.
• Value Enhancement of Pastoral Economies - Ksh2.3 billion.
• Fisheries and Aquaculture Development - Ksh4.8 billion.
• Sugar Sector reforms - Ksh2 billion.
• Coffee Cherry Revolving Fund - Ksh2 billion.