2025-26 budget shrinks State Office funds in austerity push

Kenya’s budget for the 2025-26 financial year features widespread cuts across several ministries and state agencies as the government pursues fiscal consolidation strategies to manage mounting debt.

These reductions come as part of President William Ruto’s broader effort to reduce national expenditure and address the country's financial challenges.

The Executive Office of the President will see a reduction of Sh600 million, with the new allocation standing at Sh3.8 billion, compared to Sh4.5 billion in the previous fiscal year.

The Office of the Deputy President will experience a similar cut of Sh200 million, while the Prime Cabinet Secretary’s office, led by Musalia Mudavadi, faces a Sh24 million decrease.

Former leaders also feel the financial pinch, with the retirement perks of former President Uhuru Kenyatta being reduced by Sh95 million, from Sh371 million to Sh276 million.

Other former high-ranking officials, such as Raila Odinga, have also experienced cuts to their retirement allowances, with Odinga’s benefits falling by Sh24 million.

However, the most significant cuts affect essential public services, such as education and security.

The National Police Service and Basic Education will see reductions of Sh9 billion each, raising concerns about the ability of these sectors to maintain their current service levels.

The Treasury itself will receive Sh8 billion less, highlighting the extent of the government’s need to reduce spending.

Counties are allocated Sh405 billion, but they still face massive challenges with unpaid bills that exceed Sh700 billion.

Meanwhile, the State Department for Tourism will see a significant decrease in its budget, dropping by Sh2.45 billion, from Sh13.6 billion to Sh11.15 billion.

Social protection, a critical area given the economic challenges, is also experiencing deep cuts.

The State Department for Social Protection and Senior Citizens Affairs has had its budget reduced by Sh3.82 billion, from Sh33.35 billion to Sh29.53 billion.

Other departments facing budget cuts include Petroleum, Mining, and Investment Promotion.

These reductions contradict Kenya’s push to attract investment and stimulate economic growth.

The State Department for Children Welfare Services, despite receiving an allocation of Sh11.37 billion, may struggle to offset the losses in the social protection sector.

While some sectors are seeing cuts, others, such as the Teachers Service Commission and the Independent Electoral and Boundaries Commission, are beneficiaries of increased budgets.

The Teachers Service Commission has seen an increase of 6% in its budget, totaling Sh386 billion, to facilitate the hiring of over 20,000 teachers as part of Ruto's education agenda.