NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has described the 2025/26 national budget as both realistic and responsive, saying it reflects a pragmatic approach to Kenya’s fiscal challenges while delivering tangible benefits to ordinary citizens.
Speaking ahead of Thursday’s budget presentation, Mbadi told Citizen TV that, for the first time, the National Treasury’s revenue projections are lower than those set by the Parliamentary Budget Office—an intentional move to avoid mid-year budget revisions and mounting deficits.
“The budget is not overambitious,” Mbadi said. “Our revenue projections are reasonable, and for the first time, the National Treasury has projected ordinary revenue below what the Parliamentary Budget Office has estimated.”
Kenya’s total budget for the 2025/26 fiscal year stands at Sh4.26 trillion, up from Sh3.98 trillion in the previous year.
The Treasury expects to raise Sh2.7 trillion from taxes, with an additional Sh560 billion from levies and service fees, and Sh46.9 billion in grants.
This leaves a funding gap of approximately Sh876 billion, which the government plans to bridge through borrowing.
Mbadi said the conservative revenue estimates reflect Treasury’s desire to uphold fiscal discipline in a tough economic climate.
“If revenue projections are unrealistic, it leads to budget revisions and increased deficits,” he warned.
Despite the constrained fiscal space, the CS said key sectors had received a fair share of allocations.
The health sector has seen a significant boost, with primary health care funding nearly doubling from Sh7 billion to Sh13 billion.
The budget also includes increased allocations for emergency, chronic, and clinical illness programmes.
In agriculture and food security, Mbadi said the government had ensured “reasonable allocations” to support farmers and enhance food production, especially as the country grapples with rising food prices.
Education funding remains largely in line with last year’s allocations but includes an additional Sh6 billion for higher education loans under the revamped Higher Education Financing model, aimed at reaching more students.
Mbadi also noted that social protection programmes had been strengthened, with additional funding for cash transfers to the elderly, orphans, and persons living with severe disabilities.
“This budget is responsive enough,” he said. “We’ve made every effort to direct funds to the areas that matter most to Kenyans.”
The CS maintained that the budget balances ambition with prudence and is designed to shield the economy from deeper fiscal strain while still delivering on essential services.
