Treasury Cabinet Secretary John Mbadi today presented the 2025/2026 national budget before Parliament, outlining President William Ruto’s administration’s plan to spend over Ksh.4.2 trillion in the upcoming financial year, his first budget since assuming office.
In his address at Parliament Buildings in Nairobi, Mbadi detailed the government’s fiscal strategy to finance the ambitious expenditure plan through a mix of tax revenues, government levies, grants, and borrowing.
The government has set a tax collection target of Ksh.2.7 trillion, which represents 64 percent of the total funding requirement. In addition, Treasury projects Ksh.560 billion will be raised through Appropriations-in-Aid, revenues generated by ministries and government agencies, bringing total projected revenue to Ksh.3.3 trillion.
Despite these measures, the country faces a budget shortfall of approximately Ksh.876 billion. Mbadi said the government plans to bridge this gap primarily through borrowing: Ksh.592 billion will be raised from the domestic market, while Ksh.284 billion will come from external sources. Kenya also expects to receive grants amounting to Ksh.46.9 billion.
“This budget reflects our continued commitment to fiscal responsibility while prioritizing key sectors such as infrastructure, health, education, and job creation,” said Mbadi during the presentation.
The 2025/26 budget marks a critical phase for the Kenya Kwanza administration, as it seeks to balance growth-focused investments with mounting debt concerns and rising public expectations.
Written By Rodney Mbua
