Kenya’s 2025/2026 fiscal year budget has sparked debate following significant funding reallocations across various sectors. The Liaison Committee’s recommendations, tabled in Parliament, outline increased spending in some areas while slashing funds in others, revealing the government’s shifting priorities.
Among the major beneficiaries of the budget review is Parliament, which saw its allocation increase by Sh7 billion, raising its ceiling from Sh42.88 billion to Sh49.48 billion. The Judiciary also received an additional Sh1 billion, moving its budget from Sh25.7 billion to Sh26.7 billion. The Office of the Deputy President secured Sh100 million more, bringing its allocation to Sh3.4 billion.
Some institutions retained their previous allocations. The Independent Electoral and Boundaries Commission (IEBC) maintained its Sh39 billion budget, while the Office of the President held on to its Sh4.7 billion allocation. The State Department for Higher Education also kept its Sh149.8 million funding.
Conversely, the Ministry of Health faced a substantial budget reduction of Sh73.4 billion, slashing its allocation from Sh172.6 billion to Sh99.19 billion. Ministries, departments, and state agencies (MDAs) collectively saw their budgets trimmed by Sh46.5 billion, decreasing from Sh2.5 trillion to Sh2.4477 trillion.
Other notable cuts included the Ministry of Defence, which lost Sh8 billion, and the National Police Service, whose budget was reduced by Sh1 billion to Sh117 billion. The State House’s allocation dropped by Sh100 million, while the Office of the Prime Cabinet Secretary saw a Sh4 million cut. The National Intelligence Service (NIS) budget was also trimmed by Sh200 million.
The budget for basic education was reduced by Sh22 million, and the Teachers Service Commission (TSC) saw a Sh40 million cut. Meanwhile, county governments retained a substantial share, with an equitable allocation of Sh405.07 billion and additional funding of Sh69.8 billion. The Equalization Fund arrears were set at Sh2.74 billion.
The committee recommended that by April 30, 2025, the National Treasury present a report on engagements with all MDAs with outstanding debts under the defunct National Health Insurance Fund (NHIF). This includes developing a structured repayment plan to settle the Sh12.064 billion owed.
Kenya’s revised budget for the 2025/2026 fiscal year reflects the government’s effort to balance national priorities while addressing economic challenges. As the implementation phase approaches, the impact of these changes on service delivery and development remains to be seen.
