Treasury Cabinet Secretary John Mbadi has unveiled the government’s 2025/2026 spending priorities, outlining a bold Ksh 3.32 trillion budget anchored on President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA).
The allocations, which touch on all sectors of the economy, emphasize equity, resilience, and service delivery to ordinary Kenyans.
Speaking during the national budget presentation on Thursday, Mbadi offered a sector-by-sector breakdown of the government’s thematic focus, signaling a commitment to inclusive, growth-driven investment.
“Our priority is to ensure that public resources directly support transformation at the grassroots. Every shilling must work for the people, in food production, health care, education, job creation, and national security,” said Mbadi.
Infrastructure and national development emerged as the biggest winners in the new fiscal plan.
A total of Ksh 658.4 billion has been allocated to critical infrastructure projects across the country, including roads, transport networks, and energy systems, all aimed at unlocking economic productivity and enhancing investor confidence.
National security was also heavily prioritized, receiving Ksh 464.9 billion to bolster law enforcement, internal safety, and emergency response capabilities.
Meanwhile, housing, urban development, and public works received Ksh 120.2 billion to accelerate affordable housing projects, modernize urban spaces, and boost job creation in the construction sector.
The budget places strong emphasis on social development.The health sector was allocated Ksh 133.4 billion to support the rollout of Universal Health Coverage (UHC), expansion of medical infrastructure, and recruitment of healthcare workers.
Education received Ksh 103.8 billion, targeting improved learning environments through classroom construction, teacher training, and educational material provision.
Additionally, Ksh 29.7 billion was set aside for social protection and affirmative action, focusing on support for women, youth, persons with disabilities, and marginalized communities.
“We are enhancing learning outcomes while protecting vulnerable households through comprehensive social safety nets,” added Mbadi.
To drive inclusive economic growth, the government allocated Ksh 47.6 billion to agriculture and food security. The funds will go toward fertilizer subsidies, irrigation, and mechanization to boost productivity and food sufficiency.
A further Ksh 41.3 billion was earmarked for equity, poverty reduction, and the empowerment of women and youth through financial inclusion programs and enterprise development.
Manufacturing and industrialization will receive Ksh 18.0 billion, with a focus on agro-processing and value addition.
A standout allocation of Ksh 405.1 billion went to tourism, sports, culture, and recreation, one of the largest single-sector allocations.
These funds aim to revitalize the tourism sector, promote Kenya’s cultural heritage, and expand sports infrastructure as part of a broader economic diversification strategy.
In support of Kenya’s digital economy, the ICT sector was allocated Ksh 12.7 billion to improve broadband connectivity, digital access, and government service delivery through technology.
Complementing this is an allocation of Ksh 105.6 billion for environmental protection, water, and natural resources.
These funds will go toward reforestation, water management, and climate resilience programs, essential for addressing Kenya’s environmental challenges.
The government has also allocated Ksh 47.7 billion to governance, rule of law, and justice.
The funds will support judicial operations, accountability institutions, and anti-corruption efforts across all arms of government.
In a show of continued support for devolution, Ksh 405.1 billion will be transferred to county governments. This equitable share is intended to enhance service delivery in areas such as healthcare, agriculture, local infrastructure, and early childhood education.
“County governments will receive over Ksh 405 billion to strengthen grassroots development and service delivery,” Mbadi noted.
The total revenue composition for the Ksh 3.321 trillion budget will be financed through a blend of tax revenue, domestic borrowing, and external funding.
Mbadi reassured Kenyans of prudent fiscal management, vowing to curb wasteful expenditure and enhance efficiency.
“This budget is about impact, making sure Kenyans feel the difference in their daily lives. It is a budget of hope, recovery, and renewal,” he concluded.
The proposed allocations are now set to be debated in Parliament amid high public interest, especially around how the spending plan addresses pressing challenges such as the rising cost of living, unemployment, and inequality
