MPs Approve KSh 364 Billion Top-Up, Raising 2025/26 Budget to Sh4.66 Trillion
News Updated: 03 April 2026 17:49 EAT
The parliament in session today
Kenyan lawmakers have approved a supplementary budget increase of KSh 363.9 billion for the 2025/26 financial year, raising the total national budget to about KSh 4.66 trillion. The decision, backed by the National Assembly, aims to cover emerging funding gaps that were not adequately accounted for in the original estimates.
The additional allocation was recommended by the Budget and Appropriations Committee (BAC) to address shortfalls in personnel emoluments across key sectors, including education, health, and national security. BAC Chairman Samuel Atandi stressed that the increase was necessary to ensure timely payment of salaries and benefits.
The Teachers’ Service Commission (TSC) budget received a significant boost to cover salary shortfalls and health insurance contributions, while the education sector as a whole received extra funding to settle arrears for university lecturers.
The health ministry’s allocation was raised to help cover wage gaps and support service delivery in public facilities. Security spending also saw a substantial increase, with the State Department for Internal Security receiving additional funds for personnel and operational costs.
Emergency spending was not overlooked, with the State Department for Special Programmes granted extra funding for drought and flood response, reflecting the government’s preparedness to tackle unforeseen crises.
Critics of the supplementary budget warn that the increase could widen Kenya’s fiscal deficit, which is now projected to rise due to higher spending pressures amid revenue shortfalls. BAC projections suggest the deficit may reach KSh 1.3 trillion, up from the previously approved KSh 923.2 billion.
To mitigate fiscal strain, MPs increased funding for the Kenya Revenue Authority (KRA) to strengthen revenue collection and broaden the tax base. Enhanced tax mobilisation is expected to partly offset the expanded expenditure.
The supplementary budget will be financed through a combination of domestic revenue and external loans, including funds from the World Bank, African Development Bank, and Samurai loan financing.
BAC officials noted that the increase highlights weaknesses in the original budgeting process and the need for stricter payroll management and adherence to expenditure ceilings.
The approval of the supplementary budget marks a significant adjustment to Kenya’s fiscal plans for 2025/26, ensuring that key sectors remain adequately funded while posing challenges for long-term fiscal sustainability.
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FELIX MAKONA
FACT FINDER AND DATA DRIVEN JOURNALIST. DATA MINING AT IT'S BEST. GET FACTS RANGING FROM MATTERS DISABILITY AND INCLUSION, POLITICS, ECONOMY, SPORTS AND GENERAL NEWS AROUND THE WORLD