NAIROBI, Kenya, May 10 – Kenya has proposed a Sh4.82 trillion budget for the 2026/27 financial year, with education, healthcare, infrastructure and debt repayment taking the largest share of spending.
Budget estimates tabled before Parliament of Kenya show total government expenditure rising from Sh4.29 trillion in the current financial year to about Sh4.82 trillion next year.
Education received the biggest allocation at more than Sh700 billion, covering school capitation, teacher salaries, university funding, TVET institutions and education infrastructure projects.
Funding for technical training institutions and public universities was increased as the government seeks to support skills development and industrialisation.
The health sector has been allocated about Sh136.8 billion, with funding directed toward referral hospitals, primary healthcare and implementation of Universal Health Coverage.
Under the sector, Sh54 billion has been allocated to national referral and specialised services, Sh13 billion to the Primary Healthcare Fund and Sh10 billion to the Emergency, Chronic and Critical Illness Fund.
Affordable housing also received increased funding, with the government planning to expand housing construction and related infrastructure projects.
Infrastructure spending remained high, especially in roads, transport and energy projects, with the Energy, Infrastructure and ICT sector receiving more than Sh500 billion.
The budget also reflects continued pressure from debt repayment obligations as the government moves to manage domestic and external loans.
According to the estimates, the government expects to raise about Sh3.53 trillion in revenue against planned spending of roughly Sh4.7 trillion, leaving a deficit of more than Sh1.2 trillion.
The gap is expected to be financed through domestic and external borrowing as well as support from development partners.
The Executive has been allocated about Sh2.79 trillion, while Parliament will receive Sh50.7 billion and the Judiciary Sh30.4 billion.
County governments are set to receive more than Sh495 billion in equitable share and additional allocations.
