The National Treasury has slashed the 2025/2026 budget by Ksh23.972 billion with cuts in various state agencies and departments.
The Hustler Budget was set at Ksh4.263 trillion to Ksh4.24 trillion as President William Ruto’s government turns to austerity measures.
The government estimates it will require about Ksh1.9 trillion in public debt to help finance the budget.
Treasury Cabinet Secretary John Mbadi has indicated the government will spend Ksh4.67 billion on salaries and allowances in the public service, with Ksh235 billion expected to be directed towards pension and gratuity payments.
According to our review of the budget released on Monday, May 5, Treasury is among the ministries that have received the largest cuts. The country’s money bags have chopped Ksh6.97 billion from its budget in this financial year.
While police and correctional services will receive increases, the government has proposed a Ksh4.2 billion cut to the National Intelligence Service (NIS). This is from Ksh55.65 billion to Ksh51.45 billion.
Our analysis shows the Executive Office of the President will receive a Ksh3.4 billion cut from Ksh4.491 billion in the 2024/2025 financial year to Ksh3.88 billion this year.
The State Department for Immigration and Citizen Services will have a drop of Ksh1.2 billion to receive Ksh11.77 billion, down from Ksh13 billion.
Among the winners in the new budget are the Ministry of Defence, National Police Service, State Departments of Basic Education and Higher Learning, as well as the Medical Services.
With the 2027 general elections around the corner, the Independent Electoral and Boundaries Commission has received an increase of Ksh5.75 billion to Ksh9.6 billion, up from Ksh3.85 billion in the current financial year.
The reduction of the budget followed a decision by Cabinet last week to cap the fiscal deficit at no more than 4.5 per cent of GDP for the 2025/26 financial year, down from 5.3 per cent in 2023/24 and 5.1 per cent in 2024/25.
President Ruto is under pressure from multilateral lenders like the International Monetary Fund (IMF) and the World Bank to tighten the country’s fiscal discipline.
The budget estimates will now go to Parliament for debate and approval before the budget reading mid-next month, ahead of the new fiscal year's start on July 1.
