Tag: National Budget 2025 news

Resetting the Economy: Kenya’s Budget Reboot for 2025/26

Posted on by Kibaki Muthamia

Kenya is pressing the reset button – not with more taxes or tougher times, but with a bold, people-first approach to budgeting.

The 2025/26 budget is shaping up as a moment of reckoning and renewal.

It’s not just about numbers – it’s about national priorities, fiscal discipline, and citizen welfare.

Finance CS John Mbadi during a past press conference. (Images: File)

Listening Over Legislating

Following the public outcry and eventual withdrawal of the Finance Bill 2024, the message from Kenyans was loud and clear: development must not come at the cost of daily survival.

The new direction? A government that listens.

Cabinet Secretary John Mbadi is leading a shift toward responsibility, affordability, and innovation – not pressure.

No major new taxes. No knee-jerk deductions. Just a smarter way of doing things.

What to Expect:

Tax Relief, Not Pressure: Households can breathe a little easier. The 2025/26 budget avoids introducing new taxes, easing pressure on incomes and consumption.

Efficiency is the New Currency: The plan is to operate within a zero-deficit budget – tightening belts in government, trimming fat, and restoring public confidence.

Innovation Over Imposition: Forget toll hikes and punitive tax measures. Instead, the Treasury is betting on tech to raise revenue the smart way.

Innovation at Work:

Smart Traffic Monitoring: Automated enforcement of road rules like overloading and speeding will enhance safety and bring in revenue without burdening compliant drivers.

Digital Governance: Expect deeper automation and tighter oversight. E-governance will plug revenue leaks and speed up service delivery.

An image of the previously decommissioned Kenyan currency (Image: Files)

Public Participation as Policy

For the first time in recent memory, public hearings and stakeholder consultations are central to the budget process.

This isn’t just budgeting – it’s co-creating Kenya’s future.

What is Ahead? 

This is more than a budget.

It’s a chance to rebuild trust, refocus national energy, and fuel economic growth without pain.

With BETA as the guiding framework and prudence at its heart, Kenya’s 2025/26 financial year may just become the blueprint for resilient, inclusive recovery.

Because the future isn’t far – and this budget might just be the bridge that gets us there.

Kenya’s 2025/26 Budget: Where’s the Ksh4 Trillion Going?

Posted on by Kibaki Muthamia

Kenya’s latest budget is out, and it’s packed with big plans for the economy, job creation, and essential services.

But let’s be real – budgets can feel like a maze of numbers.

So, here’s a simple breakdown of what you really need to know about the 2025/26 budget and how it affects you.

How Much Money Are We Talking About?

The government is working with a total budget of Ksh 4.26 trillion. Here’s how it stacks up:

Expected revenue is Ksh 3.39 trillion (this includes taxes and other government income) and projected spending is Ksh 4.26 trillion.

The budget deficit (the shortfall) is Ksh 831 billion, which will be covered through financing loans – both local and international.

In simple terms: the government is spending more than it’s collecting, but it’s trying to keep borrowing under control.

What Are the Big Priorities?

This budget isn’t just about numbers – it’s about where the money goes. The government has lined up five key areas for major investment under the Bottom-Up Economic Transformation Agenda (BETA):

✅ Agriculture – More food production, irrigation projects, and support for farmers.

✅ Small Businesses (MSMEs) – Boosting job creation through financial support and market access.

✅ Affordable Housing – Building more houses to close the housing gap.

✅ Healthcare – Strengthening Universal Health Coverage (UHC) and making healthcare more accessible.

✅ Digital Economy & Creative Industry –  Expanding internet access, supporting content creators, and digitalizing services.

Beyond these, other key focus areas include infrastructure, manufacturing, climate change, education, and youth empowerment.

Who’s Getting What?

The Ksh 4.26 trillion budget is spread across different sectors. Here’s a snapshot:

  • Ksh 3.1 trillion for running government operations (recurrent expenditure).
  • Ksh 725 billion for development projects (things like roads, hospitals, and water supply).
  • Ksh 436 billion will be sent to county governments to manage local projects.
Jua Kali artisans in the Affordable Housing program, a key factor in the 2025/26 budget estimate. (Image: Files)

A Closer Look at Some Key Sectors

Healthcare – More funding for hospitals, maternal and child healthcare, and rolling out Taifa Care, the new health insurance scheme.

Agriculture – Farmers will benefit from subsidized inputs, irrigation projects, and investment in key value chains like dairy and edible oils.

Security – More resources will go toward national security, fighting cybercrime, and strengthening law enforcement

Digital Economy – Expect more free public Wi-Fi, expansion of fibre networks, and opportunities for digital entrepreneurs.

Affordable Housing – New housing projects are in the pipeline, with a goal of making homeownership easier.

What’s The Big Picture?

This budget is all about balancing growth and financial discipline. The government wants to reduce debt, expand the tax base, and invest in key sectors that will drive economic recovery.

But the big question remains – will these plans translate into real change on the ground?

That’s what we’ll be watching in the months ahead. We shall offer more incisive breakdown of the FY 2025/26 in the coming weeks.