- Treasury CS John Mbadi presented a Ksh.4.2 trillion budget for 2025/26.
- Government hopes to collect Ksh.2.7 trillion in taxes, and Ksh.560 billion from internal revenues.
- A budget deficit of Ksh.876 billion will be covered mainly through borrowing.
- Domestic and external lenders will contribute Ksh.592B and Ksh.284B respectively.
- Grants worth Ksh.46.9 billion are also expected to support the plan.
- Focus areas include roads, healthcare, jobs, and learning institutions.
Treasury Cabinet Secretary John Mbadi has officially presented the Kenya Kwanza government’s financial blueprint for the next year — a Ksh.4.2 trillion budget, the first under his leadership since taking over the docket.
The budget is a major step for President William Ruto’s administration as it seeks to fund its key promises while managing the country’s rising debt burden and public pressure.
Where the Money Will Come From
To fund the record budget, the government is counting on several streams. Mbadi told Parliament that KRA has been tasked with raising Ksh.2.7 trillion in tax revenue — the lion’s share of the expected income.
He further explained that ministries and state departments are projected to generate an extra Ksh.560 billion through their own services and charges, pushing the total revenue projection to Ksh.3.3 trillion.
Even with that revenue plan, there’s still a gaping hole of Ksh.876 billion. To cover it, the government intends to borrow from both local and international sources. Mbadi said Ksh.592 billion will be borrowed within Kenya, while Ksh.284 billion will be sourced from abroad.
Kenya also anticipates getting grants worth Ksh.46.9 billion to support the budget.
Mbadi said the 2025/26 budget remains grounded in fiscal discipline while focusing on important sectors like infrastructure development, education, public health, and employment opportunities.
“This budget reflects our continued commitment to fiscal responsibility while prioritizing key sectors such as infrastructure, health, education, and job creation,” he told lawmakers.
