The National Assembly Budget and Appropriations Committee has tabled its report on the 2025/26 Budget Estimates, proposing a 2.75% increase.
The MPs have proposed an increase in the total budget to Ksh4.356 trillion, up from the National Treasury’s Ksh4.2 trillion estimate.
Further, the biggest proposed increase goes to Parliament, with the Committee recommending a 12.95% boost to bring its allocation to Ksh47.99 billion.
Additionally, the allocation for the Executive has been increased by 4.53%, reaching Ksh2.538 trillion, while the Judiciary would see a 4.19% increase if the proposal is implemented.
Consequently, the proposed adjustments would bring the budget to Ksh27.779 billion.
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Other Suggestions Made by the National Assembly
At the same time, the Committee has called for a 12.05% increase in the development spending budget, raising it to Ksh721.52 billion.
On the revenue front, the Committee has proposed a 0.35% upward revision to the 2025/26 total revenue target, now set at Ksh3.328 trillion.
However, the committee noted that in the first 10 months, with the total revenue collection missing its target by Ksh253.0 billion, it had achieved only 89.91% of the expected performance.
Also, ordinary Revenue fell short by Ksh195.3 billion, while the appropriations-in-Aid (AIA) missed its target by Ksh57.7 billion
Consequently, the Committee called for a reassessment of the framework used for collecting, managing, and utilising AIA.
Additionally, the Committee called on the government to evaluate its Office Rent Policy, noting concerns over the high cost of leasing office space, which is consuming a big part of public funds.
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MPs Worried About Budget Cuts
Earlier, the MPs warned that budget cuts could interfere with the implementation and completion of key government projects.
However, Treasury Cabinet Secretary (CS) John Mbadi indicated that the administration intended to borrow over Ksh57.4 billion from 13 foreign countries for the budget.
The funds would go toward energy, transport, health, water, education, and digital infrastructure projects.
The 2025/26 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.
Moreover, the total revenue for FY 2025/26, including Appropriation-in-Aid (A-i-A), is projected to reach Ksh3.386 trillion (17.6 percent of GDP), compared to the projected Ksh3.065 trillion (17.6 percent of GDP) in FY 2024/25.
Ordinary revenue is projected at Ksh2.835 trillion (14.7 percent of GDP), up from the projected Ksh2.581 trillion (14.8 percent of GDP) in FY 2024/25.
The overall expenditures and net lending are projected at Ksh4.263 trillion (22.1 percent of GDP) in FY 2025/26, up from the projected Ksh3.978 trillion (22.8 percent of GDP) in FY 2024/25.
The FY 2025/26 projections include: recurrent expenditure of Ksh3.096 trillion (16.1 percent of GDP); development expenditure of Ksh725.1 billion (3.8 percent of GDP); transfers to county governments of Ksh436.7 billion; and a contingency fund of Ksh5.0 billion, respectively.
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