NAIROBI, Kenya – National Treasury and Economic Planning Cabinet Secretary John Mbadi is set to present his inaugural national budget on June 12, 2025 — a defining moment both for the country’s economic direction and for Mbadi’s own political trajectory.
The Treasury, in a public notice, confirmed that the highly anticipated budget statement will be delivered in Parliament from 3 p.m. on that Thursday.
Mbadi, who took office last year, steps into the spotlight at a time of intense public scrutiny.
He inherits a debt-laden economy and lingering tensions following last year’s nationwide protests against the Finance Bill.
The 2025/26 budget is widely seen as a litmus test for his leadership and a key opportunity to restore public confidence in the government’s fiscal path.
With total spending projected at Sh4.26 trillion, up from Sh3.98 trillion in the previous fiscal year, the budget leans heavily on tax reforms to drive revenue collection.
The Treasury expects to raise Sh3.39 trillion, including Sh2.84 trillion in ordinary revenue.
Among the top priorities are education and infrastructure, with the education sector allocated a record Sh701 billion — the largest share of any portfolio.
Yet, experts and education stakeholders warn this still falls short of the sector’s actual needs.
Breakdown of key education allocations includes:
- Sh377 billion for teacher salaries
- Sh55 billion for free day secondary school capitation
- Sh41 billion for HELB student loans
- Additional funds for university scholarships, junior and primary school support, school feeding, intern teachers, and TVET programs.
The government also plans to entrench zero-based budgeting (ZBB) — a system in which each ministry and department must justify every shilling they intend to spend, starting from zero, rather than building on previous budgets.
“This is a major shift in how we plan and justify public spending,” the Treasury said in an earlier statement, describing ZBB as part of a broader effort to rein in wastage and improve fiscal discipline.
Under the proposed budget:
- Sh3.1 trillion is earmarked for recurrent expenditure
- Sh725.1 billion for development
- Sh436.7 billion for county transfers
The National Government has been allocated Sh2.7 trillion, with the Executive taking the lion’s share.
Parliament and the Judiciary are set to receive Sh42 billion and Sh25.6 billion, respectively.
Meanwhile, county governments are facing a budget cut — receiving Sh405 billion, down from Sh410 billion last year.
In a statement issued earlier in the year, CS Mbadi invited Kenyans to submit their views on the budget estimates, emphasising the importance of public participation in shaping national priorities.
The call was made in line with Section 25 of the Public Finance Management Act, which mandates the Treasury to consult widely before submitting the Budget Policy Statement for Cabinet and parliamentary approval.
