National Treasury Cabinet Secretary, John Mbadi, on Thursday, June 11, 2026, delivered the Budget Statement for the FY 2026/27 before the National Assembly.
According to the CS, the proposed national budget for the Fiscal Year, which stands at 4.82trillion, captures the ideals of both President William Ruto and the Late Raila Omollo Odinga on their aspiration to transform the country’s economy from its current status to a more developed nation status.
Of the total budget, recurrent expenditures will amount to KSh 3.57 trillion, development expenditures, including allocations to domestic and foreign financed projects, Contingency Fund and Equalisation Fund amounting to KSh 750.0 billion, whereas the total allocation to County Governments is projected at KSh 502.0 billion, of which KSh 428.0 billion is equitable share and KSh 784.0 billion is additional allocations from the National Government’s share of revenue and loans (KSh 16.6 billion) and grants from Development Partners (KSh 57.4 billion).
How much has been allocated to Kenya’s education sector?
While outlining resource allocation in the Budget, the Education sector yet again got the lion’s share of the ministerial budget with Kshs 784.5 billion allocation.
“I propose KSh 784.5 billion for the Education Sector, including KSh 424.3 billion to the Teachers Service Commission, KSh 136.6 billion for Basic Education, KSh 163.9 billion for Higher Education, KSh 1.3 billion for Science Innovation & Research and KSh 58.5 billion for Technical Vocational Education and Training (TVET),” CS Mbadi told the House
The CS told the House that from January 2027, the 20,000 intern teachers will be converted into permanent and pensioned as he proposed an allocation of Ksh 4.9 billion towards the exercise.
Further, he stated that the newly recruited 24,000 intern teachers will be converted into permanent and pensionable in July 2027, proposing an allocation of KSh 8.2 billion to address staffing gaps and improve learning outcomes.
Breakdown of Health sector allocation in the 2026/27 budget
The Health Sector also got a KSh 177.2 billion allocation aimed at advancing Universal Health Care (UHC) and strengthening essential services. Key allocations include: KSh 8.6 billion salaries for UHC staff; KSh 19.1 billion for Primary Healthcare Fund to finance front-line services.
“Mr Speaker, to reduce the burden of communicable diseases and advance immunisation, I propose KSh 18.5 billion for the Global Fund; and KSh 6.4 billion for Vaccines and Immunization Programme. These investments will protect children and communities and reduce health-related economic shock,” the CS said.
The fertiliser subsidy program in the agriculture sector also got a major boost after getting Ksh 18.0 billion allocation out of the total allocation of Ksh 64 billion to the sector. Other key investments in the sector include: Ksh 2.0 billion for the Seed Subsidy Programme and KSh 1.0 billion for the Coffee Seedlings Programme to lower input costs for smallholders
The youths are also among the biggest winners in the 2026/27 FY budget allocation after getting KSh 12.5 billion for the National Youth Service, KSh 4.9 billion for the National Youth Opportunity Towards Advancement (NYOTA) project, KSh 1.6 billion for the Youth Employment Support Programme, and KSh 1.0 billion for Film Development Services.
In his speech, the CS told the House that the resultant fiscal deficit, including grants, is projected at KSh 1,146.2 billion and will be financed by net external borrowing of KSh 116.2 billion and net domestic borrowing of KSh 1,030.1 billion.
