Nairobi — Kenya’s Parliament is pushing back against the country’s growing appetite for debt, proposing a leaner KSh 4.2 trillion budget for the next financial year, a move designed to curb borrowing and re-centre spending on essential services.
The revised 2025/26 estimates, tabled in the National Assembly on Wednesday, mark a slight dip from last year’s KSh 4.3 trillion budget. Lawmakers say it’s a necessary adjustment to keep the country from sinking deeper into a debt hole.
“This budget reflects our desire to live within our means,” said a senior member of the Budget and Appropriations Committee, speaking on condition of anonymity ahead of next week’s debate. “We’re not just cutting for the sake of it this is about smarter spending.”
Of the total figure, KSh 1.8 trillion will go towards recurrent costs, including public salaries and day-to-day operations. Development spending covering roads, energy and long-term infrastructure is pegged at KSh 707.8 billion.
The Kenya Revenue Authority is under pressure to deliver, with Parliament banking on it to collect KSh 3.3 trillion in revenue, which includes ordinary taxes and ministerial income.
Education remains a top priority, with KSh 701.1 billion set aside roughly 28 percent of the entire budget. The energy, infrastructure and ICT sectors follow, receiving a combined KSh 500.7 billion, while health is allocated KSh 136.8 billion.
The agricultural sector, long seen as key to rural development, will receive KSh 78 billion, including KSh 8 billion for the fertiliser subsidy programme.
Despite these investments, debt looms large. Parliament proposes spending KSh 1.34 trillion on repayments alone more than twice the allocation to counties, which are set to receive KSh 405.1 billion if the proposals are adopted.
The Executive retains significant control over the purse, with KSh 2.497 trillion earmarked for its use. Parliament and the Judiciary are allocated KSh 47.9 billion and KSh 27.7 billion, respectively.
Observers say the modest budget cut signals a shift in political mood.
“There’s growing pressure to confront Kenya’s debt problem head-on,” said economic analyst Mumbi Wekesa. “But meaningful change depends on how these estimates are implemented and whether revenue targets are actually met.”
The budget estimates are due for debate in the National Assembly next week, ahead of Treasury’s formal budget statement on Thursday.
For now, all eyes are on Parliament where the country’s financial future hangs in the balance.
