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Sh44.6bn Nairobi budget targets health, roads and learners without raising taxes

Sh44.6bn Nairobi budget targets health, roads and learners without raising taxes
Finance and Planning Executive Charles Kerich (on podium) presenting the Nairobi County budget. PHOTO/Nairobi County Assembly
In Summary

The new budget reflects an increase of Sh1 billion from the previous year, with Sh31.2 billion allocated to recurrent expenses and Sh13.4 billion to development.

Nairobi County’s Sh44.6 billion budget for the 2025/2026 financial year has been passed by the County Assembly, with a strong focus on healthcare, infrastructure, education, and grassroots development.

The new budget reflects an increase of Sh1 billion from the previous year, with Sh31.2 billion allocated to recurrent expenses and Sh13.4 billion to development.

Finance and Planning Executive Charles Kerich, while addressing the Assembly during a special sitting, outlined the county’s spending priorities and confirmed that no new taxes will be introduced.

He said the decision was made to protect Nairobi residents from the current harsh economic conditions.

“Due to financial constraints, taxes will not be increased in order to protect our people during these tough economic times,” Kerich said.

To boost healthcare, Sh849 million has been allocated for building, rehabilitating, and equipping health facilities. Another Sh400 million will go toward providing hospitals with non-pharmaceutical supplies.

“Infrastructure development is a key priority, with upgrades and expansions planned for key hospitals including Pumwani Maternity and Mama Lucy Kibaki Hospital. We will prioritise equipping hospitals with advanced diagnostic and treatment tools, as well as modernizing the health data system,” said Kerich.

The county will also continue investing in education through the school feeding programme, which received Sh700 million.

Although this is Sh100 million less than last year’s Sh800 million, the allocation will support the continuation of the programme and help keep children in school.

Last year’s funding was used to build over 10 modern kitchens to facilitate the programme.

Bursary allocations stand at Sh857 million, with each ward set to receive Sh7 million. The balance will support learners under the Executive Scholarship Programme.

For ward-level projects, the county has allocated Sh2.15 billion. Kerich noted that 145 ward projects were completed last year and the new funds will help push forward more community-based initiatives.

Road development will also benefit, with Sh2.8 billion allocated for road construction and rehabilitation across the city.

An additional Sh1 billion has been set aside for sports facilities, including the upgrade and construction of stadiums and complexes.

Kerich said the budget is designed to accelerate development while improving service delivery, and that it complies with all legal and financial management standards.

The county recorded Sh13.4 billion in Own-Source Revenue last year, up from Sh10 billion.

Kerich told the Assembly that his department is broadening the tax base to raise funds without raising tax rates.

He also said the county will clean up its revenue database to establish the accurate amount of outstanding funds and improve collections through stronger recovery strategies.

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