NAIROBI — President William Ruto has signed the Appropriations Bill 2025 into law, approving KSh1.88 trillion for government spending in the new fiscal year starting July 1. The law authorizes the National Treasury to access funds from the Consolidated Fund and an additional KSh672 billion from internal revenue collected by government agencies.
The 2025/26 budget focuses on health, agriculture, infrastructure, education, and security. The Treasury allocated KSh1.13 trillion to recurrent spending and KSh744.5 billion to development projects.
The bill supports the Bottom-Up Economic Transformation Agenda, a policy designed to expand access to services and boost productivity at the grassroots level.
Key Allocations:
Agriculture and Food Security
KSh47.6 billion will go to agriculture. This includes KSh10.2 billion for value chain development and KSh8 billion for fertilizer subsidies. The government also set aside KSh4 billion to clear coffee farmers’ debts and KSh3.2 billion to improve pastoral farming. Sugar sector reforms will receive KSh1.5 billion.
Health Sector
KSh133.4 billion will fund the health docket. A portion will be directed to the Global Fund (KSh17.3 billion), while KSh13.1 billion is allocated to the Primary Healthcare Fund. Emergency and chronic care services will receive KSh8 billion, and KSh6.2 billion will go toward transferring confirmed health workers to county payrolls.
Vaccine programs will receive KSh4.6 billion. Doctor internships and maternal care services are funded at KSh4 billion and KSh3.8 billion, respectively. Cancer center construction and the doctors’ collective bargaining agreement will receive KSh1.3 billion and KSh1.75 billion.
Enterprise and MSME Support
The government has allocated KSh1.3 billion to the Rural Kenya Financial Inclusion Programme. KSh300 million each will go to the Hustler Fund and the Youth Enterprise Fund. Another KSh600 million is set for the Centre for Entrepreneurship and KSh200 million for MSME agricultural credit.
Industrialization and Value Chains
KSh18 billion will support agro-processing and manufacturing. The funds include KSh4.5 billion for County Integrated Agro-Industrial Parks and KSh1.1 billion for textile parks in Naivasha and Athi River. Export Processing Zone hubs will get KSh700 million, while KSh500 million is directed to MSME incubation under Kenya Industrial Estates.
Infrastructure and Security
The government has committed KSh217.3 billion for road construction and rehabilitation. KSh38.6 billion will fund transport infrastructure by rail, sea, and air. Power generation, grid expansion, and e-mobility will take KSh62.8 billion. A further KSh12.7 billion has been directed toward digital infrastructure and the creative economy.
Education
Education will receive the highest allocation at KSh658.4 billion. Teacher salaries and resource management account for KSh387.8 billion. Free education programs are funded at KSh58.9 billion, while KSh28.9 billion will go to junior secondary school capitation. HELB will disburse KSh41.5 billion in loans, and KSh17.3 billion has been earmarked for university scholarships. TVETs will receive KSh7.7 billion.
Other education-related funding includes KSh3 billion for school meals and KSh700 million for infrastructure.
The new spending plan reflects the government’s intention to drive growth through investment in services and production. Ministries are expected to begin implementation of the approved budgets on July 1.
