THE BUDGET WINNERS AND LOSERS: EDUCATION, HEALTH, AND SECURITY SECTORS RECEIVE MORE

TREASURY CS PRESENTS THE BUDGET 2025/26
SECURITY SECTOR BUDGET DROPS BY ONE PERCENT

Education, health, and security sectors have greatly benefited from this year’s financial budget. The budget, which was presented today by treasury cabinet secretary john mbadi in parliament, proposed a total allocation of approximately 702 million shillings to the education sector alone.

In the 2025/26 financial year, the education sector has received a significant allocation of 701 billion shillings, representing an increase of 116 billion shillings compared to last year’s budget estimates.

In the allocation, the teachers service commission (tsc) was allocated approximately ksh 387 billion, an increase of nearly 20% from its allocation in the previous year.

In the budget read by finance cabinet secretary john mbadi, the allocation for primary education increased from 124.5 billion shillings to 147.5 billion shillings. For technical and vocational education and training institutions (tvets), the allocation rose by 3.8%, from 21.5 billion shillings to 22.3 billion shillings.

Additionally, according to the budget, secondary schools were allocated 54.88 billion shillings, while the government set aside ksh 148.5 billion shillings for higher education and research, up ksh 126.4 billion shillings last year,an increase of 17.5%.

With the ministry of health continuing to face challenges especially after the united states withdrew its support in the sector, cs mbadi allocated health cs aden duale’s health 136.8 billion shilling. The funding expected to cover activities in all departments under the ministry, including the social health athority , reproductive health services, medical supplies, and medical research.

The security sector was also not left behind. The government increased its allocation to address internal security challenges, the fight against terrorism, and cybercrime. The defense forces, directorate of criminal investigations (dci), and intelligence services were allocated a total of ksh 338.2 billion shillings, with part of that amount directed toward the purchase of modern equipment, training, and incentives for security officers.

Either independent electoral and boundaries commission (iebc) suffered the most significant reduction cut by  17 billion, from ksh 21.68 billion last year to just ksh 4.68 billion shillings.

On the other hand, treasury cs john mbadi tabled the 2025/26 budget highlights before the national assembly, navigating a tightrope of public expectation and the contentious issues that led to the collapse of the 2024/25 finance bill.

Among the flashpoints in the failed bill was a proposed rise in taxation—an unpopular move amid soaring living costs. Cs Mbadi clarified that the treasury is not introducing new tax increases this time around. Instead, the strategy is to enhance tax administration through the kenya revenue authority (kra).

The tax agency is expected to raise at least ksh 2.7 trillion in revenue, now backed by expanded authority to analyse financial data in a bid to catch tax evaders. In a poignant moment during his presentation, cs mbadi called for a moment of silence, saying no kenyan should lose their life over a process meant to foster dialogue and consultation.

In his maiden budget proposal, mbadi is seeking approval for a borrowing ceiling of ksh 909 billion—comprising ksh 147 billion in external loans and ksh 762 billion from the domestic market. This plan, however, has drawn criticism, with some arguing that heavy domestic borrowing could squeeze out local enterprises from access to credit.