Treasury Cabinet Secretary John Mbadi is set to present the 2025/2026 Budget Statement before Parliament on Thursday, June 12, outlining the government’s financial roadmap for the upcoming fiscal year.
In a notice confirming the session, Mbadi said the address will begin at 3pm, during which he will detail the government’s revenue targets, spending plans, economic outlook, and tax proposals.
The new budget totals Ksh4.23 trillion, slightly reduced from the initial Ksh4.5 trillion following Cabinet revisions. Despite the cut, it still reflects an increase from the current Ksh3.9 trillion budget.
Out of the total allocation, Ksh3.09 trillion has been set aside for recurrent expenditure, Ksh725.1 billion for development projects, Ksh436.7 billion for county transfers, and Ksh5 billion for the Contingency Fund.
CS Mbadi will also table key budget documents including the Budget Estimates Book, the Finance Bill 2025, the Appropriations Bill, the Budget Policy Statement, and the Medium-Term Debt Strategy. These documents offer detailed breakdowns of expenditure plans and guide the government’s fiscal and borrowing strategies.
This year’s budget gives a significant boost to key sectors, with the Executive receiving Ksh2.494 trillion—an increase of over Ksh522 billion. Parliament’s allocation has risen slightly, while the Judiciary’s budget has been reduced to Ksh25.749 billion from last year’s Ksh27.749 billion.
Education emerges as one of the biggest winners, with an allocation of Ksh850.677 billion—up from Ksh656.6 billion in the current financial year. The funds are expected to support infrastructure upgrades and curriculum reforms across learning institutions.
On the other hand, the Health sector faces a budget cut, with a proposed allocation of Ksh127 billion, down from Ksh147 billion. The reduction raises concerns over the sustainability of Universal Health Coverage and other ongoing health programmes.
The government has set an ambitious revenue target of Ksh2.835 trillion for the next financial year—an increase of over Ksh203 billion from the current year’s Ksh2.6314 trillion. The rise reflects intensified tax collection efforts, informed by the 2025 Budget Policy Statement which emphasised fiscal consolidation, economic resilience, and inclusive green growth.
The Medium-Term Revenue Strategy, which outlines reforms in the tax regime, will focus on expanding the tax base, enhancing compliance, embracing technology, and increasing non-tax revenue streams from government departments and agencies.
Lawmakers will have an opportunity to scrutinise and debate the proposed budget after the presentation. Committees such as the Budget and Appropriations Committee will play a critical role in reviewing the proposals and issuing recommendations.
Parliament is expected to approve the budget before the new financial year begins. The live broadcast of the Budget Reading will also offer Kenyans a chance to follow proceedings and share their views on the country’s fiscal direction.
