The Lower Eastern Times Opening The Third Eye
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The Cabinet has approved a Sh4.26 trillion budget for the 2025/26 financial year.
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This budget, which will be presented to Parliament for further review, allocates Sh3.09 trillion for recurrent expenditures and Sh725.1 billion for development projects.
Within the development budget, Sh436.7 billion is designated for county government transfers, and an additional Sh5 billion is set aside for the contingency fund.
Overall, the spending represents 22.1% of Kenya’s Gross Domestic Product (GDP), with a focus on personnel salaries and ongoing government projects.
This proposed budget is introduced amid an economic environment still recovering from the effects of the controversial 2024 Finance Bill. The bill faced significant rejection after widespread public opposition and violent protests, which led to the loss of many lives, prompting the government to reassess its fiscal policies.
In addition to the main budget, the Cabinet has also approved the 2024/25 Supplementary Estimates, which authorize an extra Sh344.8 billion in spending. This supplementary fund is divided into Sh199.0 billion for recurrent costs and Sh145.8 billion for development initiatives.
State House stated that these funds will support various government projects, personnel salaries, revenue adjustments, and other pressing fiscal needs.
In 2024, President William Ruto refused to sign the Finance Bill, which sought to raise Sh344.3 billion through new taxes, following the widespread protests that accompanied it.
The revised budget and supplementary estimates are seen as crucial steps to stabilize the economy and address both recurrent and development priorities during this difficult fiscal period.
