The National Assembly has approved the Budget Policy Statement (BPS) for the 2025/2026 financial year, setting the National Government budget ceiling at Ksh 2.523 trillion.
The allocation includes Ksh 2.44 trillion for the Executive, Ksh 49.48 billion for Parliament, as well as Ksh 26.75 billion for the Judiciary.
How much will counties get in 2025?
Additionally, lawmakers endorsed Ksh 405.07 billion for county government equitable share and an allocation of Ksh 7.85 billion to the Equalization Fund.
Majority Leader Kimani Ichung’wah lauded the Budget Policy Statement for emphasizing fiscal consolidation, which will stabilize public debt and ensure funds are available for development programs.
“I’m happy that even this BPS has laid special emphasis on fiscal consolidation to reduce our public debt vulnerabilities while providing fiscal space to deliver on essential goods and services,” Ichung’wah also stated.
He further highlighted the economic recovery, stating, “This BPS has been prepared on the backdrop of an economy that is rising and recovering steadily. indeed, we can now proudly say, our economy has stabilized.”
In its report, the Liason Committee directed the State Department for Higher Education and Research to finalize the revision of the higher education funding model, and the State Department for TVET is to develop guidelines on the management of TVET instructors, both by June 30, 2025.
MP Eve Obara stressed the urgency of addressing challenges faced by students under the new funding model.
“I have noted that this matter has been raised and that the Department has been given a deadline of 30th June to sort it out,” she said.
MPs concerns about Equalization Fund
Meanwhile, several lawmakers raised concerns about equity in budget distribution, particularly regarding the Equalization Fund and resource allocation formulas.
The Equalization Fund, designed to address regional disparities, will receive Ksh 7.852 billion, consistent with the latest audited revenues, with an additional Ksh 2.747 billion allocated to clear arrears.
Westlands MP Timothy Toroitich criticized changes to the Equalization Fund formula, arguing, “A law that was meant to uplift historically marginalized areas has been altered to benefit regions that were not originally meant to receive these funds.”
Similarly, MP Robert Gichimu called for a population-based approach to resource allocation, saying, “We should not only look at geographical allocations but also the population aspect, as population puts pressure on resources.”
The 2025/26 Budget Policy Statement paves way for the Budget Estimates, set to be tabled in the May 2025 .
