The government is ramping up efforts to create employment opportunities for Kenyans through significant funding allocations to priority sectors including education, health, housing, and business in the 2025/2026 Financial Year.
Education Sector
In the education sector, the government has proposed a substantial allocation of Ksh701 billion. A portion of these funds will be directed towards the recruitment of new teachers across the country.
Education Principal Secretary Julius Bitok revealed that part of this amount—Ksh7.2 billion—will be used specifically for hiring intern teachers. According to Bitok, the government plans to recruit 24,000 teachers by December 2025.
This move is part of a broader strategy to strengthen the country’s education system by addressing the shortage of teachers in public schools.
Health Sector
The health sector is also set to benefit from increased government support, with a total allocation of Ksh138.1 billion.
According to Treasury Cabinet Secretary John Mbadi, the government intends to use part of this funding to hire additional healthcare personnel, including medical interns and specialized professionals.
“To strengthen the capacity of medical personnel, I have proposed an allocation of Ksh4.3 billion for medical interns, Ksh3.2 billion for Community Health Promoters, Ksh303 million for the training of health personnel, and Ksh8.9 billion for the Kenya Medical Training Centres,” CS Mbadi stated in his budget presentation.
This is aimed at improving service delivery and expanding access to quality healthcare, particularly in underserved regions.
Housing and Construction
In the housing sector, the government will intensify the construction of affordable housing units as part of the ongoing Affordable Housing Programme.
An allocation of Ksh120.2 billion has been set aside for this initiative in the 2025/26 fiscal year, with expectations that it will create thousands of jobs for Kenyans in the construction industry.
Of this amount, Ksh64.5 billion will go towards the direct construction of affordable housing units, Ksh16.5 billion has been earmarked for social and physical infrastructure, while Ksh10.5 billion is allocated for social housing units.
The government projects that these developments will not only provide decent and safe housing for citizens but also generate employment for masons, engineers, welders, plumbers, and other skilled and unskilled workers.
“In the FY 2025/26 budget, Ksh120.2 billion has been allocated for the housing programme,” reads the Mwananchi budget guide. “Through the Affordable Housing Programme, the government is creating jobs for the youth directly in the construction sector and indirectly through the production of building materials.”
In addition, Ksh21.7 billion has been allocated for the renovation and construction of stadiums and other sports facilities in preparation for the 2027 Africa Cup of Nations (AFCON). These projects are also expected to absorb a significant number of workers in the building and construction sector.
Business and ICT Opportunities
To spur job creation through entrepreneurship, the government has made several allocations aimed at supporting businesses and enhancing digital access for the youth.
The Financial Year 2025/26 budget includes Ksh300 million for the Financial Inclusion Fund, also known as the Hustler Fund, to improve credit access for households and micro, small, and medium enterprises (MSMEs).
An additional Ksh300 million has been set aside for the Youth Enterprise Development Fund, while Ksh600 million will support the Centre for Entrepreneurship Project.
Moreover, the Rural Kenya Financial Inclusion programme will receive Ksh1.3 billion, and Ksh200 million has been set aside for MSME agricultural credit facilities.
To expand opportunities in the digital economy, Ksh1.4 billion has been allocated for the digital superhighway, government shared services, and digital hubs. These initiatives are expected to provide more youth with access to digital jobs both within Kenya and abroad.
National Police Service
The National Police Service is also a major beneficiary in the proposed budget, with Ksh51.4 billion allocated for operations and capacity building.
Interior Cabinet Secretary Kipchumba Murkomen announced that a portion of these funds will go toward the recruitment of 10,000 new police officers by the end of 2025.
This move is part of a broader plan to enhance national security and improve the police-to-population ratio across the country.
The 2025/2026 budget clearly reflects the government’s commitment to boosting employment through targeted investments in sectors with the highest potential for job creation. From classrooms to hospitals, construction sites, and digital workspaces, the government aims to tackle unemployment and stimulate economic growth across all levels of society.
