MPs seek to tame Kenya’s debt appetite in Ksh 4.2T budget estimates

Wairimu Njenga
3 Min Read

Parliament is proposing major budgetary realignments targeting more social programmes.

In its revised 2025/26 fiscal year budget estimates, the Budget and Appropriations Committee has trimmed the national budget to Ksh 4.2 trillion, a slight drop from the previous year’s Ksh 4.3 trillion.

The estimates report, which was tabled in the National Assembly on Wednesday afternoon, now heads to the floor of the house next week, where members are expected to debate the proposed estimates.

The budget stresses on a shift aimed at reining in public debt and prioritising development beginning July 1, 2025.

Out of proposed amount, Ksh 1.8 trillion has been allocated to recurrent expenditure covering salaries, government operations, and ongoing programmes.

Development expenditure channelled towards infrastructure and long-term investments stands at KSh 707.8 billion.

The Budget and Appropriations Committee has outlined various measures aimed at fiscal consolidation, prudent spending, and targeted investments.

Overall government spending is capped at Ksh 2.53 trillion, with the Kenya Revenue Authority tasked with collecting Ksh 3.3 trillion in total revenue, including ordinary revenue and Appropriations-in-Aid.

Education takes the largest portion of the budget, receiving Ksh 701.1 billion, accounting for 28.1pc of the entire budget.

Energy, infrastructure, and ICT sectors have been allocated a combined total of Ksh 500.7 billion, the second highest share, while the health sector is expected to receive Ksh 136.8 billion.

The agriculture sector will get Ksh 78 billion, with Ksh 8 billion earmarked for the fertiliser subsidy program.

The Executive will control the bulk of the budget at Ksh 2.497 trillion.

Allocation to Parliament stands at Ksh 47.9 billion, while the Judiciary and the Judicial Service Commission will receive Ksh 27.7 billion.

On debt repayment, the parliamentary committee is proposing a total of 1.34 trillion to be used to repay debts.

Counties are set to receive an equitable share of KSh 405.1 billion if the proposals of the Budget Committee sail through.

The National Assembly is expected to debate the budget estimates ahead of the formal budget presentation on Thursday next week.

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