Military, police, education get boost in Sh4.2 trillion budget
The Defence Ministry’s recurrent budget also received a boost, with an additional Sh14.18 billion
Teachers, soldiers, police officers, and key new departments are among the top beneficiaries of the national budget for the financial year starting in July, as the government unveiled a Sh4.2 trillion plan that focuses on essential services and trims other areas.
In the budget estimates tabled in the National Assembly, the Treasury has increased recurrent funding for the Teachers Service Commission (TSC) by Sh21.66 billion, raising the agency’s allocation to Sh387.08 billion.
A substantial portion of the new funds will go into teacher resource management, with the budget for this item rising from Sh354.62 billion to Sh376.9 billion.
This points to a focus on recruitment and promotion of teachers across the country.
The Defence ministry’s recurrent budget also received a boost, with an additional Sh14.18 billion pushing its total allocation to Sh183.8 billion.
The Kenya Defence Forces (KDF) alone got Sh182.8 billion, representing an 8.4% rise.
The Kenya Shipyards, which had not been funded in the current financial year, will now receive Sh5.56 billion.
The Kenya Meat Commission, placed under KDF by the previous administration, has been allocated Sh2.98 billion after getting no funding in the current cycle.
In a show of support for emerging sectors, the newly established State Department of Aviation and Aerospace Development will receive Sh14.15 billion.
The State Department of Children Welfare Services will get Sh11.37 billion, showing the government’s push to fund new initiatives in social welfare and science.
The National Police Service has been given Sh8.9 billion more, bringing its total budget to Sh123.7 billion.
This increase appears to align with the government's efforts to strengthen national security as the country prepares for the 2027 General Election.
Overall, recurrent expenditure will rise by Sh6.4 billion to Sh1.72 trillion.
The government has managed to keep this increase low, despite the higher allocations to key sectors, by cutting back on non-essential spending such as travel and entertainment.
Total expenditure, including both recurrent and development spending, will reach Sh3.51 trillion.
County governments are set to receive Sh474.87 billion from the national government, pushing the total budget to Sh4.2 trillion.
The Treasury plans to finance the budget through improved tax collection rather than introducing new heavy taxes.
After facing strong opposition to last year’s Finance Bill, which triggered protests and led to its withdrawal, the government has focused on closing tax loopholes and targeting evaders.
The new Finance Bill proposes a vehicle tax of between Sh5,000 and Sh10,000 per vehicle, reintroduces VAT on bread, and removes income tax exemptions on income registered under trust schemes.
Due to setbacks in revenue collection plans, the Treasury has had to lower its expectations on tax income and increase its reliance on domestic borrowing.
The 2025 Budget Policy Statement shows domestic borrowing targets have risen from Sh413.1 billion to Sh593.7 billion.
The shift is influenced by favourable interest rates in the local market, allowing the government to borrow at a lower cost.