The budgets for the Health, Education, Security, Agriculture Rural and Urban Development, and the Energy Infrastructure and ICT sectors are to cumulatively increase by KSh 405 billion in the next three years.
- •In the 2025/26 KSh 4.336 trillion budget, the National Treasury has allocated the security docket KSh 257 billion and will increase it KSh 300 billion in 2026/27 and KSh 391 billion by 2027/8.
- •The education sector has been allocated KSh 723.9 billion in the 2025/26 Financial year to rise to KSh 847 bullion in the 2027/28 cycle from KSh 759.6 billion in 2026/27 calender year.
- •The 2025 Budget Policy Statement (BPS) projects economic growth to pick up to 5.3 percent in 2025 and retain the same momentum over the medium term.
“In view of the constrained fiscal environment, prioritization during resource allocation will be critical in ensuring low-priority expenditures are dropped or deferred to give way to high-priority service-delivery programmes,” notes the National Treasury in the BPS.
In justifying the security budget growth, the government notes that the the Sector will continue to address contemporary and emerging threats to national security such as terrorism, radicalization, human and drug trafficking, and money laundering.
In the FY 2025/26 and the Medium Term, the heath sector aims at expanding universal health coverage (UHC) and strengthen the health system’s resilience. This includes digital health investments in infrastructure to connect healthcare facilities with the National Optic Fibre Backbone Infrastructure (NOFBI), targeting expanded coverage to over 6,000 health facilities by 2028, and the implementation of the Electronic Community Health Information System (eCHIS).
“To implement these programmes, the health sector has been allocated KSh 204.5 billion, KSh 214.8 billion and KSh 231.0 billion in the FY 2025/26, 2026/27 and 2027/28 respectively,” Treasury added.
Energy, Infrastructure and ICT sector’s budget will grow from KSh 504.6 billion in 2025/26 to Ksh 597.3 billion in 2027/28. Agriculture Rural and Urban Development sector will have a budget of KSh 77.7 billion in 2025/26 period before moving to KSh 99.9 billion in 2026/27 then to KSh 105.7 billion in 2027/28.
The government projects a fiscal deficit of Ksh 831.0 billion (4.3 percent of GDP) in FY 2025/26 compared to the projected fiscal deficit of Ksh 862.7 billion (4.9 percent of GDP) in FY 2024/25. It expects ordinary revenue of KSh 2.835 trillion in the next financial year from KSh 2.58 trillion in 2024/25.
