Treasury Allocates KSh379.5 billion for Five Bottom-Up Key Clusters in Ruto’s 4th Budget

The National Treasury has proposed allocating KSh 379.5 billion in the 2026/27 financial year budget to key projects under the Bottom‑Up Economic Transformation Agenda (BETA).

According to the Budget Summary for the 2026/2027 Fiscal Year, the funding will be implemented through five value chain clusters, with spending spread across broader thematic areas in the government.

According to the National Treasury, the Bottom‑Up framework groups priority programs into the clusters of Finance and Production Economy, Infrastructure, Social Sectors, Land and Natural Resources, and Governance and Public Administration.

Treasury explains that the cluster approach is designed to align public expenditure with value chains that support livelihoods, service delivery, and inclusive economic growth at the grassroots.

How the KSh 379.5 Billion Bottom‑Up Allocation Will Be Spent

The infrastructure cluster has been earmarked to receive the largest share of funding at KSh 134.8 billion.

According to the proposed budget summary, this shows continued prioritization of roads, transport networks, energy systems, housing, urban development, and digital connectivity, which are critical to economic activity and access to services.

The Social Sectors cluster, on the other hand, has been allocated KSh 122.5 billion, which the Treasury said will support spending on social protection, sports, culture, and tourism.

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According to the budget document, these areas will receive among the largest allocations in the overall budget, especially education and health, reflecting the government’s focus on investing in people and improving skills, health, and livelihoods.

Infrastructure and Social Sectors Take the Largest Share

According to the National Treasury, the Finance and Production Economy cluster has been allocated KSh 57.8 billion to strengthen productive sectors and livelihoods.

Treasury said the funds will support value chains, including agriculture, manufacturing, and enterprise development, covering dairy, rice, cotton, leather, tea, edible oils, the blue economy, and building materials.

Meanwhile, the Governance and Public Administration cluster has received KSh 39.9 billion.

This allocation is intended to strengthen public institutions, justice systems, and national security, and is aligned with significant thematic spending on national security, governance, and justice.

Treasury further noted that the Land and Natural Resources cluster, allocated KSh 24.5 billion, will focus on the sustainable management of land, water, forestry, and mineral resources and is closely linked to thematic programs on environmental protection and climate resilience.

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Allocations to BETA Clusters (FY 2026/27)

According to the Treasury, this KSh 379.5 billion represents the direct allocation to Bottom‑Up Economic Transformation Agenda (BETA) priority clusters, implemented using a value‑chain approach across five clusters.

Allocations to Key Thematic Areas (FY 2026/27)

In addition, the National Treasury has highlighted key thematic areas with a total proposed allocation of KSh2.34 trillion in the 2026/2027 budget.

Education, which is listed among the key thematic areas, is earmarked to receive a total of KSh668.3 billion in the Financial Year, accounting for the largest share. Key areas within the education sector set to benefit include Free Secondary Day Education (Ksh54.6 billion) and capitation for Junior School learners, which has been allocated Ksh30.9 billion.

In addition, the Teachers Service Commission (TSC) has been allocated KSh400 billion for salaries, while KSh1.2 billion has been earmarked to support teachers’ capacity development.

The National Security sector is also poised to be among the biggest beneficiaries of the proposed budget, with a total allocation of KSh566.8 billion. Key among the departments allocated significant shares in the security sector is the Defence (Ksh250 billion), National Police Service (Ksh144.4 billion), and the National Intelligence Service (NIS) with a proposed allocation of KSh58.6 billion.

An additional KSh13 billion has also been proposed for the leasing of police motor vehicles.