Kenya Launches KSh 4.2 Trillion Budget to Boost Infrastructure and Social Programs

 

The Government of Kenya has unveiled a KSh 4.2 trillion budget for the 2025/26 fiscal year, signaling its commitment to accelerating infrastructure development and expanding key social programs across the country. This ambitious financial plan is the largest in the nation's history and is aimed at aligning fiscal resources with national development priorities under the Bottom-Up Economic Transformation Agenda (BETA).

Unveiled by the National Treasury Cabinet Secretary during a presentation to Parliament, the budget outlines bold spending across several priority areas, including transport, housing, education, healthcare, and agriculture. At the heart of the plan is a renewed focus on improving public infrastructure and strengthening service delivery, especially in underserved regions.

Infrastructure Development Takes Center Stage

A significant portion of the budget—over KSh 800 billion—has been allocated to infrastructure projects, with a focus on upgrading roads, railways, energy distribution, and water systems. The government plans to complete ongoing flagship projects, including the expansion of major highways, the construction of affordable housing units under the Affordable Housing Programme, and the modernization of railway links to enhance trade and mobility.

Energy and ICT infrastructure are also receiving notable allocations. The budget includes funding for expanding access to electricity in rural areas and improving internet connectivity to support digital inclusion and economic competitiveness.

Social Services Get a Major Boost

In addition to infrastructure, the budget earmarks a substantial amount for social programs aimed at improving the quality of life for Kenyans. The education sector will receive KSh 650 billion, with resources directed toward the implementation of the Competency-Based Curriculum (CBC), construction of new schools, and recruitment of additional teachers.

Healthcare is another key beneficiary, with KSh 360 billion allocated to support the roll-out of Universal Health Coverage (UHC), enhancement of medical facilities, and the provision of essential drugs and equipment. The government also plans to expand NHIF coverage and streamline access to health services, particularly in rural and marginalized areas.

The agriculture sector, a backbone of Kenya's economy, will receive increased support to boost food security, irrigation projects, and access to affordable inputs for farmers.

Revenue and Deficit Management

To finance this record-breaking budget, the government expects to raise KSh 3.2 trillion through domestic revenue, including taxes and levies. The remaining deficit will be covered through both domestic and external borrowing. While concerns have been raised over Kenya's rising public debt, the Treasury maintains that the borrowing will be managed prudently and aligned with medium-term fiscal targets.

Aiming for Inclusive Growth

Speaking during the budget presentation, the Treasury Cabinet Secretary emphasized that the 2025/26 budget is designed to promote inclusive and sustainable economic growth. "Our goal is to ensure that no Kenyan is left behind," he said. "This budget prioritizes investments that create jobs, enhance service delivery, and build resilience across communities."

As the country prepares for implementation, stakeholders are closely watching how the funds will be deployed and monitored. Effective execution, transparency, and accountability will be crucial to translating this ambitious financial plan into tangible improvements in the lives of ordinary Kenyans.