National Treasury Cabinet Secretary John Mbadi is expected to present a Ksh 4.24 trillion budget before the National Assembly today, amid growing public demand for tax relief to counter the rising cost of living.
This will be Mbadi’s first budget presentation since taking over the Treasury docket, making him only the second person to serve in the role. The budget will outline key tax and expenditure plans for the 2025/26 financial year, which begins on July 1.
Of the total expenditure, Ksh 1.79 trillion has been allocated for recurrent spending, while Ksh 707.8 billion will go toward development initiatives including infrastructure projects, social programs, and economic growth efforts. The Budget and Appropriations Committee has proposed that Ksh 1.34 trillion be set aside for Consolidated Fund Services, with Ksh 1.1 trillion specifically allocated for interest payments on the country’s public debt, which now stands at Ksh 10.6 trillion. An additional Ksh 239.6 billion will cover pensions and salaries for constitutional commissions and independent offices.
Counties, which have pushed back against Treasury’s proposed equitable share, are set to receive Ksh 405.1 billion to support their operations and development plans for the upcoming fiscal year. Among the three arms of government, the Executive will take the largest share at Ksh 2.5 trillion roughly 59 percent of total expenditure. From this amount, Ksh 10.2 billion will go to the Equalization Fund, while the Office of the Auditor General will receive Ksh 8.68 billion. Parliament is allocated Ksh 42.5 billion, and the Judiciary will receive Ksh 26.7 billion.
The education sector will be the biggest beneficiary of national government spending, receiving Ksh 701.1 billion about 28.1 percent of the total budget. These funds will support primary, junior and senior secondary schools, Technical and Vocational Education and Training (TVET) institutions, universities, and the remuneration of teachers, lecturers, and instructors, along with school infrastructure development.
Energy, infrastructure, and ICT follow closely with a combined allocation of Ksh 500.7 billion. Within this, Ksh 195 billion is designated for road maintenance and construction, while Ksh 119 billion is earmarked for urban development, including Ksh 95 billion to support the Affordable Housing Fund.
To finance the 2025/26 budget, Treasury expects to raise Ksh 3.3 trillion from ordinary revenue and Appropriations-in-Aid. All eyes now turn to Mbadi’s presentation, where the nation will be watching closely for signals of economic relief and fiscal responsibility.
