Kenya Tables Ksh.4.2 Trillion Budget for 2025/26 Fiscal Year

• Jun 12, 2025

President William Ruto’s administration plans to spend more than Ksh.4.2 trillion in the upcoming 2025/26 financial year, according to the budget estimates presented in Parliament today by Treasury Cabinet Secretary (CS) John Mbadi. This marks one of the country’s largest budgets yet, highlighting the government’s ambitious economic and development agenda.

The 2025/26 budget will be funded through a mix of debt, ordinary revenue, grants, fees charged for government services, and borrowing. These are standard channels the government uses to meet its financial obligations when expenditure outweighs revenue collection.

CS Mbadi laid out the financial roadmap before Members of Parliament during the annual budget presentation at the National Assembly. He outlined how the government plans to use the funds and how it will raise the money to finance its activities in the coming fiscal year.

Although the official breakdown of the allocations and projected revenues was not immediately released to the public, the presentation confirms the government’s continued reliance on borrowing and taxes to bridge the budget deficit. This approach has been a common feature in Kenya’s recent budgets, as the country grapples with rising public debt and the need to fund key sectors such as education, healthcare, infrastructure, and security.

The government has in recent years been under pressure to balance its ambitious spending goals with the need for fiscal discipline. Analysts have warned that continued borrowing without strong economic growth could increase the country’s debt burden. However, the government maintains that its spending plans are necessary to support development and improve service delivery across the country.

With the budget now tabled in Parliament, the next steps include debate by lawmakers, possible amendments, and eventual approval before implementation begins in July, marking the start of the new financial year.

Today’s budget presentation signals a crucial phase in Kenya’s economic planning, with CS Mbadi taking on a central role in managing the country’s finances amid growing expectations for transparency, accountability, and impact from public spending.