National Treasury Cabinet Secretary John Mbadi is expected to table a Sh4.24 trillion budget before the National Assembly later today, amid growing calls for tax cuts to ease the high cost of living.
Mbadi, the second cabinet secretary to head the Treasury docket under the current administration, is set to outline key tax measures for the 2025/26 fiscal year, which begins on July 1, 2025.
In the proposed budget, recurrent expenditure is projected to consume Sh1.79 trillion, while development expenditure is set at Sh707.8 billion.
The development funds will cover infrastructure projects, social programs, and other economic growth initiatives.
According to recommendations by the Budget and Appropriations Committee, Sh1.34 trillion has been earmarked for Consolidated Fund Services (CFS), out of which Sh1.1 trillion will go toward interest payments on the country’s public debt, which currently stands at Sh10.6 trillion.
ALSO READ: Stable Shilling Slashes Banks’ Forex Income by Sh9 Billion
The Treasury is also expected to allocate Sh239.6 billion for pensions and salaries for constitutional commissions and independent offices.
Counties, which have rejected the Treasury’s proposed equitable share, are set to receive Sh405.1 billion to support their operational and development expenditures for the 2025/26 financial year.
Among the three arms of government, the Executive will receive the largest allocation Sh2.5 trillion equivalent to 59 percent of total government expenditure. From this amount, Sh10.2 billion will go to the Equalization Fund for counties, while the Office of the Auditor General will receive Sh8.68 billion.
Budget estimates tabled in the National Assembly indicate that Parliament will receive Sh42.5 billion, while the Judiciary has been allocated Sh26.7 billion.
The education sector will receive the largest share of the national government’s expenditure, amounting to Sh701.1 billion, or 28.1 percent . These funds will support capitation for primary, junior secondary, and senior secondary schools; Technical and Vocational Education and Training (TVET) institutions; universities; remuneration for teachers, instructors, and lecturers; and the development of school infrastructure.
The energy, infrastructure, and ICT sectors are set to receive the second-largest allocation at Sh500.7 billion. Of this, Ksh 195 billion has been earmarked for the maintenance, rehabilitation, and construction of roads.
An additional Sh119 billion is designated for urban development, with Sh95 billion set aside for the Affordable Housing Fund.
