The National Assembly Liaison Committee has approved the Budget Policy Statement (BPS) for the financial year 2025/2026.
As per the committee’s report, the national government will be allowed to spend Ksh 2.52 trillion.
“That, the National Government budget ceiling be approved at Ksh2,523,474,081,480,” read part of the report from the National Assembly Liaison Committee.
The Executive will receive Ksh 2,447,236,081,480 (Ksh2.4 trillion), with Ksh 8,652,200,000 (8.65 billion) allocated to the Office of the Auditor General.
National Assembly Caps Govt Budget at Ksh 2.52 Trillion
At the same time, Parliament has been allocated Ksh 49,488,200,000 (Ksh49.49 billion), while the Judiciary will receive Ksh 26,749,800,000 (Ksh26.74 billion) in the financial year.
The committee also resolved that the allocation to the County Government Equitable Share be approved at Ksh 405,069,420,197.
Additionally, the allocation to the Equalization Fund was set at Ksh 7,852,814,725, based on the latest audited and approved revenues for FY 2020/21, which amounted to Ksh 1,570,562,945,014.
It was further approved that arrears to the Equalization Fund be set at Ksh 2,747,185,275.
Moreover, the committee approved an allocation of Ksh 69,802,409,623 for County Government Additional Allocations, which will serve as the basis for the County Government Additional Allocations Bill for FY 2025/2026.
The additional allocations to county governments comprise Unconditional Additional Allocations of Ksh 2,946,442,428.
Additionally, there are Conditional Additional Allocations from National Government Revenue, totaling Ksh 9,948,031,729, as well as Conditional Allocations from Loans & Grants from Development Partners amounting to Ksh 56,907,935,467.
Meanwhile, the committee recommended an allocation of Ksh3 billion for public participation initiatives to enhance citizen engagement in governance and decision-making processes.
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2025/2026 Budget
The cabinet in February this year approved the Ksh4.2 trillion budget for the Financial Year (FY) 2025/26.
The budget had allocated Ksh3.09 trillion for recurrent spending, Ksh74.8 billion for development, Ksh436.7 billion for county transfers, and Ksh5 billion for the Contingency Fund.
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Revenue and Expenditure Projections
In the Budget Policy Statement, the total revenue for FY 2025/26 including Appropriation-in-Aid (A-i-A), is projected to reach Ksh 3.386 trillion (17.6 percent of GDP), compared to the projected Ksh 3.065 trillion (17.6 percent of GDP) in FY 2024/25.
Ordinary revenue is projected at Ksh 2.835 trillion (14.7 percent of GDP), up from the projected Ksh 2.581 trillion (14.8 percent of GDP) in FY 2024/25.
The overall expenditures and net lending are projected at Ksh 4.263 trillion (22.1 percent of GDP) in FY 2025/26, up from the projected Ksh 3.978 trillion (22.8 percent of GDP) in FY 2024/25.
The FY 2025/26 projections include: recurrent expenditure of Ksh 3.096 trillion (16.1 percent of GDP); development expenditure of Ksh 725.1 billion (3.8 percent of GDP); transfers to county governments of Ksh 436.7 billion; and a contingency fund of Ksh 5.0 billion, respectively.
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