State House has already spent more than 80% of its recurrent budget, far outpacing all other ministries and departments in the first three months of the 2025/26 fiscal year.
- •According to Treasury figures, the presidential abode was slated to receive KSh 7.68 billion for recurrent expenditure, and has already received KSh 6.2 billion, representing an 81% burn rate.
- •The total budget for the national government stands at KSh 4.02 trillion, with KSh 1.34 trillion already issued.
- •High early spending by these entities points to the likelihood of additional funding next year to support the government's obligations, defeating the promise for austerity.
The Office of the Deputy President follows with 63% of its KSh 2.97 billion recurrent allocation already issued.
Security and social programs are also likely to feature prominently in the supplementary budgets next year. The National Intelligence Service (NIS) has received nearly half of its KSh 51.4 billion allocation, while the State Department for Social Protection and Senior Citizens has seen 57% of its KSh 29 billion allocation disbursed. The State Department for Internal Security and National Administration has also spent 90% of its development allocation in the first quarter.
Education remains a striking feature of Kenya’s fiscal landscape. The Teachers Service Commission (TSC) has a recurrent allocation of KSh 385.5 billion, the single largest in the national budget, though only a fraction has been disbursed so far. Combined with the State Department for Basic Education, the education sector accounts for a significant portion of the country’s wage-heavy public sector.
Recurrent expenditure dominates early disbursements, while development spending, totaling KSh 407 billion, lags, particularly in sectors like roads, housing, and energy. This fiscal pattern highlights a government prioritization of salary obligations, executive operations, and security over high-capital infrastructure in the first quarter of the fiscal year.
Large infrastructure projects remain in early stages of execution and have received little portions of funding. The State Department of Roads, with a development allocation of KSh 76.2 billion, has received just 13% of its funds. Water and sanitation projects, energy, and crop development programs have also received less than 50% of their respective allocations. These rates suggest the frontloading of recurrent expenditure over developmental spending, with major capital projects yet to absorb the bulk of the budget.
