Education Sector Gets Lion’s Share Of The KSh4.239 Trillion Budget As Treasury Cabinet Secretary Unveils 2025/2026 Spending Plan In Parliament
By MKT Reporters
The Cabinet Secretary for National Treasury and Economic Planning, John Mbadi yesterday delivered his first official Budget Day speech before the National Assembly.
In a session that lasted slightly over two hours, Mbadi outlined the Budget Policy Highlights and Revenue Raising Measures for the next Financial Year running from July 1, 2025 to June 30, 2026.
The Speaker of the National Assembly, Moses Masika Wetang’ula, adjourned the House sitting at around 5:20p.m., shortly after the Cabinet Secretary concluded his presentation which he had started at around 3pm.
The proposed national budget stands at KSh4.239 trillion and it is largely anchored on President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA) and the broader goals of Vision 2030.
The figures presented by the CS shows that the gross expenditure is structured into three key categories; KSh1.79 trillion for recurrent expenditure, KSh1.337 trillion for Consolidated Fund Services (CFS), and KSh707.8 billion for development expenditure.
In the budget, Education has been allocated the largest share of the national budget, receiving KSh702.7 billion, which represents approximately 16.6 per cent of the total budget.
A significant portion of this allocation; KSh387.2 billion, has been earmarked for the Teachers Service Commission, which includes KSh7.2 billion dedicated to the recruitment of intern teachers.
Free Day Secondary Education will receive KSh51.9 billion, while Junior Secondary School Capitation has been allocated KSh28.9 billion. The government will also spend KSh7 billion on Free Primary Education, KSh5.9 billion on national examinations, and KSh3 billion on the School Feeding Programme.
According to the CS, Infrastructural development in primary and secondary schools will receive KSh1.7 billion, with an additional KSh1.4 billion allocated to Technical and Vocational Education and Training (TVET) infrastructure. Higher Education support has also been prioritized, with KSh41.5 billion going to the Higher Education Loans Board (HELB), KSh16.9 billion for university scholarships, and KSh7.7 billion for TVET capitation and scholarships.
The infrastructure sector has a total allocation of KSh217.3 billion. This includes KSh115.6 billion for road maintenance, KSh70.8 billion for rehabilitation and KSh30.9 billion for road and bridge construction.
An additional KSh38.0 billion has been allocated to railway development, while urban and ferry transport projects, such as the Nairobi Bus Rapid Transit system and Kenya Ferry Ramp, will receive KSh1.2 billion.
Health is also another highest funded sector with an allocation of KSh138.1 billion. This includes; KSh42.4 billion for Referral hospitals and KSh17.3 billion from the Global Fund to combat HIV, Malaria and Tuberculosis. The government will also spend KSh13.1 billion on the Primary Healthcare Fund and KSh6.2 billion on coordinating Universal Health Coverage.
Other key allocations includes; KSh8.9 billion for Kenya Medical Training Centres, KSh8.0 billion for the Chronic and Critical Illness Fund, KSh4.6 billion for vaccines and immunization, KSh4.3 billion for medical interns, and KSh3.2 billion for Community Health Promoters. Vulnerable groups will receive medical cover worth KSh430 million.
Energy has been allocated KSh62.8 billion, with the bulk going to the National Grid System (KSh31.6 billion) and Rural Electrification (KSh16.3 billion). The Geothermal Development Programme will receive KSh11.5 billion, while KSh2.1 billion is set aside for alternative energy technologies. Nuclear Energy development has been allocated KSh743.8 million.
The ICT sector has been allocated KSh12.7 billion. Key initiatives include KSh3.7 billion for the Kenya Digital Economy Acceleration Project, KSh3.1 billion for Konza Technopolis and Data Centre and KSh2.3 billion for the Kenya Advanced Institute of Science and Technology.
Other allocations include KSh750 million for maintenance of the national fiber backbone, KSh700 million for the rollout of an e-Procurement system, KSh689 million for digital hubs and KSh382 million for the Digital Superhighway initiative.
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