The government has reaffirmed its commitment to land reforms by allocating Sh3.8 billion to settle landless Kenyans in the 2025/26 national budget.

The funds aim to address historical inequalities, improve access to land, and promote sustainable management of land resources.

Presenting the budget in the National Assembly on Thursday, National Treasury Cabinet Secretary John Mbadi also proposed Sh1.1 billion for processing and registering title deeds, along with Sh712 million for digitising land registries.

Additional allocations include Sh200 million for georeferencing land parcels and Sh220 million for constructing land registries to protect land ownership rights.

Mbadi said Sh900 million will be spent on both digitising and building land registries.

Earlier, Mbadi highlighted a positive economic shift as Kenya’s inflation rate fell to a two-year low of 3.8% in May 2025, down from 9.6% in October 2022.

He attributed this improvement to targeted government policies and sound fiscal and monetary management.

“In response to the decline in inflation, the Central Bank of Kenya has gradually eased monetary policy, lowering the bank rate from 13% in August 2024 to 9.75% in June 2025,” Mbadi said.

This easing has led to a drop in interest rates, with the 91-day Treasury bill rate falling from an average of 15.9% in 2024 to 8.3% in May 2025.

The 2025/26 budget aims to balance economic recovery, development spending, and fiscal consolidation under the Kenya Kwanza administration’s economic plan.

This is the second budget under President Ruto and the first presented by Mbadi since he took over as Treasury Cabinet Secretary earlier this year.