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    Kenya Ups Special Projects Budget as Floods, Drought Compound Crises

    Brian
    By Brian Nzomo
    - March 09, 2026
    - March 09, 2026
    Kenya Business newsInfrastructurePublic PolicyMacroeconomics
    Kenya Ups Special Projects Budget as Floods, Drought Compound Crises

    Kenya is confronting a dual climate emergency as heavy rains have triggered widespread flooding across Nairobi, the Rift Valley, Western, Eastern, Nyanza, and Coastal regions, while prolonged drought continues to strain communities in arid and semi-arid lands (ASALs).

    • •The floods have killed 42 people countrywide as waters have inundated low-lying neighborhoods, swept away vehicles, and submerged informal settlements.
    • •Across the country, rivers have overflowed, roads are impassable, and thousands of residents have been displaced.
    • •The flooding compounds an already critical situation in drought-affected areas, where more than 3 million people face hunger, which has escalated the need for rapid, large-scale intervention.

    In response to these crises, the Treasury has proposed a KSh 13.5 billion supplementary budget for the State Department for Special Programmes for FY 2025/26, up from an original allocation of KSh 653.7 million.

    The draft, pending parliamentary approval, is a net increase of KSh 12.9 billion, nearly a twenty-fold rise, with almost the entire increase directed toward current expenditure.

    The Relief and Rehabilitation programme, operating under Special Initiatives, is the largest beneficiary, with KSh 12.6 billion allocated to provide emergency assistance during humanitarian disasters. This includes support for 3.4 million households with food aid and 200,000 households with non-food items, reflecting a nationwide effort to reach both urban and rural communities affected by floods and ongoing drought.

    Nearly all of this funding, KSh 11.99 billion, is earmarked for current transfers to government agencies, indicating that implementation will rely on other public and non-governmental actors rather than direct delivery by the state department itself. An additional KSh 600.2 million is allocated for use of goods and services, covering logistics, transport, and other operational costs essential for rapid disaster response.

    The Accelerated ASAL Development programme, which focuses on drought-prone regions, has received a proposed increase of KSh 270.5 million, bringing its total allocation to KSh 924.2 million. Within this, current expenditure rises to KSh 758.6 million, with KSh 165.6 million retained for capital grants.

    Key areas of expenditure include compensation to employees, which nearly doubles from KSh 21.97 million to KSh 42.1 million, and transfers to agencies, which increase by KSh 150.4 million to support community-level interventions in vulnerable areas. The programme aims to ensure 100% coverage of disaster operations, coordination of response activities, and post-disaster support for affected families and entities.

    The supplementary estimates highlight a government strategy centered on rapid response, high coverage, and reliance on partner agencies. Capital expenditure remains unchanged at KSh 165.6 million, signaling that the immediate priority is not long-term infrastructure but delivering resources and operational support where disasters are striking now.

    The Kenyan Wall Street

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