Key Allocations In 2025/26 Broad-Based Budget, Including Ksh702.7B For Education

On Thursday, June 12, Treasury Cabinet Secretary John Mbadi unveiled the Ksh4.29 trillion budget for 2025/26, with Ksh702.7 billion earmarked for the education sector. This represents roughly 28 per cent of the entire budget, highlighting education's key role in fueling economic development.

"The education sector plays a vital role in economic development by enhancing human capital, driving innovation, and improving productivity," he stated while presenting the budget estimates before the National Assembly.

"To this end, the government continues to invest in education to raise learning outcomes and ensure equal opportunity for all. I have proposed a total of Ksh702.7 billion to the education sector, which is almost 28 per cent of our entire budget."

Amid growing worries about delayed funding, increasing debt, and the long-term viability of free education, the government has vowed to maintain its support.

National Treasury Cabinet Secretary (CS) John Mbadi reading the Budget estimates in Parliament on June 12, 2025. /PARLIAMENT KENYA

The Teachers Service Commission (TSC) is set to receive the largest portion—Ksh387.2 billion—including Ksh7.2 billion for hiring intern teachers and Ksh980 million for capacity-building initiatives under the Competency-Based Curriculum (CBC).

“The allocation for TSC will include Ksh7.2 billion for the recruitment of intern teachers and Ksh980 million for the capacity building of teachers on the Competency-Based Curriculum,” he said.

The Treasury has also allocated Ksh7 billion for free primary education, Ksh28.9 billion for junior secondary school capitation, and Ksh51.9 billion for free day secondary education.

An additional Ksh5.9 billion will fund national exams, while the school feeding programme is set to receive Ksh3 billion. Another Ksh4 billion is earmarked for the TVET and entrepreneurship project.

To boost infrastructure and ensure safer learning spaces, Ksh1.7 billion has been set aside for primary and secondary school facilities, and Ksh1.4 billion will go toward building and equipping technical training institutes and vocational centres.

The Kenya Primary Education Equity in Learning Programme is getting Ksh13.3 billion, while the Kenya Secondary School Quality Improvement Project will receive Ksh2.3 billion.

The Treasury has allocated Ksh993 million to research, science, technology, and innovation. The Higher Education Loans Board (HELB) will receive Ksh41.5 billion—up from Ksh35 billion—alongside Ksh16.9 billion for university scholarships and Ksh7.7 billion for TVET student capitation and scholarships.

Here are some of the key allocations made in the 2025/2026 Budget.

Land Reforms

• Ksh3.8 billion – settlement of the landless.
• Ksh1.1 billion – processing and registration of title deeds.
• Ksh712 million – digitisation of land registries.
• Ksh200 million – geo-referencing of land parcels.
• Ksh220 million – construction of land registries.

Financial Inclusion

• Ksh300 million – to the Financial Inclusion Fund aka Hustler Fund.
• Ksh308 million – access to credit for households and MSMEs.
• Ksh550 million – Centre for Entrepreneurship Project.
• Ksh1.3 billion – Rural Kenya Financial Inclusion Facility.

Blue Economy

This sector will receive funding of Ksh8.2 billion. The other detailed breakdown includes;

• Ksh2.3 billion – aquaculture business development project.
• Ksh2.4 billion – Kenya Marine Fisheries and Socio-Economic Development project.
• Ksh500 million – Kabonyo Fisheries and Aquaculture Training Sector.

Agriculture

• Ksh8 billion – fertiliser subsidy programme.
• Ksh10.2 billion – National Agricultural Value Chain Development Project.
• Ksh800 million – small-scale irrigation and value addition project.
• Ksh1.2 billion – food security and crop diversification project.
• Ksh5.8 billion – food systems resilience project.

Housing, Urban Development and Public Works

The sector was allocated Ksh128.3 billion. The detailed breakdown includes; 

• Ksh13.4 billion – Kenya Urban Programme.
• Ksh64.5 billion – construction of Affordable Housing Units.
• Ksh10.5 billion – construction of Social Housing Units.
• Ksh16.5 billion – social and physical infrastructure.
• Ksh7.2 billion – Kenya Informal Settlement Improvement Project Phase II.
• Ksh3.5 billion – construction of housing units for the National Police and the Kenya Prisons.
• Ksh500 million – building a climate-resilient programme for the urban poor.
• Ksh184 million – construction of footbridges.
• Ksh454 million – construction of county HQs.

Digital Superhighway and Creative Economy

Ksh12.7 billion to fund initiatives in the ICT sector. This includes:

• Ksh2.3 billion – construction of the Kenya Advanced Institute of Science and Technology at Konza Technopolis.
• Ksh3.7 billion – Kenya Digital Economy Acceleration Project.
• Ksh333.2 million – government shared services.
• Ksh382 million – Digital Superhighway.
• Ksh689 million – establishment of digital hubs.
• Ksh750 million – maintenance and rehabilitation of national optic fibre backbone infrastructure.
• Ksh3.1 billion – Konza Data Centre and Smart City facilities.

Roads

Ksh217.3 billion has been earmarked for the development of roads across the country. The breakdown of the allocation is as follows.

• Ksh30 billion – construction of new roads and bridges.
• Ksh70.8 billion – rehabilitation of roads.
• Ksh115.6 billion – road maintenance.
• Ksh38 billion – expansion of railway transport and its infrastructure.
• Ksh450 million – Kenya Ferry Ramp in Mombasa.

Education

The sector has a total allocation of Ksh702.7 billion. The key allocations are:

• Ksh387 billion – Teachers Service Commission (TSC)
• Ksh7.2 billion – recruitment of intern teachers,
• Ksh980 million – capacity building of teachers on CBC
• Ksh7 billion – free primary education.
• Ksh28.9 billion – JSS capitation.
• Ksh51.9 billion – free day secondary education.
• Ksh5.9 billion – administering the national examination.
• Ksh3 billion – school feeding programme.
• Ksh4 billion – TVET project.
• Ksh1.7 billion – primary and secondary school infrastructure.
• Ksh1.4 billion – construction and equipping of TVETs.
• Ksh13.3 billion – Kenya Primary Education Equity in Learning Programme.
• Ksh2.3 billion – Kenya Secondary School Quality Improvement Project.
• Ksh993 million – research, science, technology, and innovation.
• Ksh41.5 billion – HELB.
• Ksh16.9 billion – scholarship for university students.
• Ksh7.7 billion – capitation for TVET students.

Chairperson of the National Assembly’s Budget and Appropriations Committee, Sam Atandi (Alego Usonga), and Chairperson of the Finance and National Planning Committee, Kuria Kimani (Molo), with Treasury Cabinet Secretary, John Mbadi, at Parliament Buildings on June 12, 2025. /PARLIAMENT KENYA