The National Treasury and Economic Planning Cabinet Secretary, John Mbadi, presented the 2025/2026 Budget before the National Assembly on Thursday, June 12.
The budget, which was Mbadi’s first as CS, was set at Ksh4.23 trillion. He outlined the government’s revenue and expenditure plans for the upcoming financial year.
In the build-up to the Budget presentation, Mbadi had repeatedly expressed his enthusiasm for handling the challenge of balancing Kenya’s high debt, increased expenditure, and demands for resources while meeting Kenyans' expectations of not being overtaxed.
Key themes that the Treasury associated with the new Budget included stimulating sustainable economic recovery, improving livelihoods, creating jobs, and supporting business and industrial property.
In the new budget, the government has allocated Ksh3.09 trillion for recurrent expenditure, Ksh725.1 billion for development projects, Ksh436.7 billion in county transfers, and a Ksh5 billion provision for the Contingency Fund.
At Kenyans.co.ke, we are at hand to provide you with a live blog. Keep refreshing this page for updates.
Follow regular updates below:
6:04pm: Protestors advance towards Central Police Station, the alleged scene where Albert Ojwang died, via Moi Avenue. Footage shows them chanting "Central!" as they aim to storm the station.
5:45pm: The United States issues a statement over the protests warning against going to the CBD as the protests escalated to violence.
5:36pm: A woman is allegedly shot during protests at the CBD. She has been rushed to hospital with reports suggesting she is losing blood quickly.
5:22pm: Mbadi finishes reading the 2025/2026 Budget. Speaker Moses Wetang'ula acknowledges Mbadi's presentation and brings the proceedings to an end.
5:16pm: Mbadi notes the Finance Bill 2025 introduces several key amendments aimed at enhancing tax regulation and compliance. Notably, it proposes the reintroduction of a 100 per cent diminution allowance under the Income Tax Act.
Additionally, it seeks to empower multinational companies to enter into advance pricing agreements with the Kenya Revenue Authority (KRA), with the aim of reducing disputes and fostering smoother operations.
Mbadi further adds that the Bill suggests a significant reduction in the Digital Asset Tax from three per cent to 1.5 per cent, making it more favourable for digital businesses. It also clarifies the responsibility for the Fringe Benefit Tax, stipulating that it is payable by employers rather than employees.
5:07pm: Parliament to receive Ksh48 billion, while Judiciary will receive Ksh27 billion.
4:56pm: The National Assembly holds a moment of silence in honour of Gen Zs who died in last year's anti-Finance Bill protests.
4:55pm: The Defence Ministry has been allocated Ksh202.3 billion. National Police Service (NPS) receives Ksh125.7 billion, National Intelligence Service (NIS) Ksh51.4 billion and the Ministry of Interior has been allocated Ksh32.5 billion. The Kenya Prisons Service receives Ksh38.1 billion.
4:52pm: To boost manufacturing for job creation, the National Treasury proposes an allocation of Ksh18 billion under various ministries.
4:50pm: To improve educational outcomes and to ensure equitable access to education, the National Treasury proposes KES 702.7 Billion to the education sector. This is an equivalent of 28 per cent of the total budget.
4:45pm: The ICT Ministry has been allocated Ksh12.7 billion. Funds are set to go towards digital acceleration programme, construction of an ultra-modern technology facility at Konza technopolis, government shared services, digital hubs and the digital superhighway.
Ksh217.3 billion has been allocated for the construction, maintenance and improvement of roads across the country.
4:40pm: Mbadi proposes Ksh128.3 billion to the housing sector. Also, Mbadi proposes Ksh138 billion for the Health sector. This is up from the previous allocation of Ksh123 billion in the current financial year. The figure is to spread out across various health programs such as the Universal Health Coverage (UHC), primary healthcare and care for the orphaned, elderly and disabled.
4:35pm: Mbadi begins listing proposed allocations for various sectors of Kenya's economy. Agriculture sector is to get Ksh47.6 billion. Blue economy and fisheries have been allocated Ksh8.2 billion.
4:20pm: Mbadi reveals projected revenue collections to be three trillion shillings. Made up of ordinary revenues (Ksh2.754 trillion), appropriations-in-aid (Ksh567 billion) and grants (Ksh46.9 billion). Projected expenditure is Ksh4.291 trillion . Out of this recurrent expenditure is Ksh3.134 trillion while development expenditure is Ksh693.2 billion.
Also, revenue allocation to counties is Ksh474 billion. Fiscal deficit is Ksh923 billion. Government aims to curb deficit through internal borrowing (Ksh635 billion) and external borrowing (Ksh287 billion).
4:07pm: Mbadi assures of government commitment to ensure free basic education across the country. Also reveals plans to introduce a merit-based system in payment of exams fees such that students from well-off families might be required to pay. Reforms protect students from low-income families. However, Mbadi still assures government will cater for this year's examinations.
3:55pm: To curb the huge public wage bill, Mbadi reveals a raft of measures such as implementing unified human resource management to ensure the public wage bill is managed. Deadline for government institutions to implement this is July 2025.
Also, Salaries and Remuneration Commission (SRC) to reduce allowances of public and state officials.
3:45pm: The CS lists policy interventions the government will undertake to reduce cost of living, create jobs, expand the tax base, enhancing food security, increase foreign exchange reserves and promote inclusive growth.
Mbadi notes that through strategic investment based on a value-chain approach, government will boost economic investment, strengthen macro-economic stability, promote human capital investment and ensure shareable revenues to all parts of the country.
3:38pm: Mbadi provides the economic context associated with the 2025/2026 Budget. Notes the local economy has been resilient. Cites reduced inflation with the current rate being 3.8 per cent, as a key factor.
This is compared to 9.6 per cent in 2022. Adds gradual reduction of the CBK lending rate as another contributor, as it facilitates easier access to cheap loans for Kenyans. Adds greater forex reserves, strong shilling as key factors for forecasted increased growth rate.
3:26pm: Mbadi speaks on how Treasury came up with the new Budget. Reveals shift to zero-based budgeting and aligning budgetary allocations with current trends as the two-pronged approach employed by the Treasury. Adds adoption of technology, intensified engagements with the public and incorporation of the youth as key to building 'strong' Budget.
3:16pm: CS Mbadi lists successes of Ruto's Bottom-up Economic Transformation Agenda (BETA) such as Affordable Housing units, fertiliser subsidies to farmers, the Universal Health Coverage (UHC) program where over 23 million Kenyans have registered under the Social Health Authority and the introduction of digital transformation hubs.
3:13pm: CS Mbadi begins his address in the National Assembly. Thanks President Ruto for naming him as Treasury CS and bestowing such a responsibility to him.
3:07pm: Treasury CS John Mbadi enters the National Assembly chambers to a raucous welcome by Members of Parliament (MPs) ahead of his Budget reading.
3:02pm: Protests in the Nairobi CBD escalate as protestors overwhelm police in major CBD roads. Roads affected include those leading to Treasury building, Harambee Avenue. Two vehicles on fire at Aga Khan Walk behind Kenya Cinema.
2:49pm: National Assembly commences sittings ahead of CS Mbadi's Budget reading.
2:39pm: Mbadi, PS Kiptoo, CBK Governor Kamau Thugge greet Parliament officials amongst them Budget and Appropriations Committee chair Samuel Atandi as he prepares to address Parliament. Meanwhile, protests in the CBD continue, with protestors vandalising recently installed waste bins by Nairobi Governor Johnson Sakaja.
2:15pm: Interior Principal Secretary Raymond Omollo acknowledges the protests in CBD, notes that it is their right. Protests in Homa Bay, where Albert Ojwang hails from, have been reported.
1:55pm: Protestors currently outside Central Bank of Kenya (CBK) as protests over Albert Ojwang's murder gather steam.
1:42pm: Mbadi arrives in Parliament with the Budget briefcase. Protests continue in the CBD. Heavy police presence is seen as the authorities aim to quell the protests.
1:36pm: CS Mbadi begins walking to Parliament. A procession from Treasury buildings in Harambee Avenue led by a band leads the CS and his team to Parliament Road.
1:30pm: Mbadi takes his first picture with the famous Budget briefcase even as protests in the CBD intensify. Police throwing tear gas to disperse the growing number of Kenyans.
1:20pm: Protests continue, with protestors engaging in calls for Deputy Inspector General (DIG) Eliud Lagat to resign. Police remain vigilant, using teargas as the clock ticks towards Mbadi’s Budget Reading.
12:29pm: Protesters in the CBD grow, march along City Hall, Jevanjee Gardens, Parliament Buildings and Harambee Avenue over Albert Ojwang's death. Police respond by lobbing tear gas to disperse crowds. Protestors are seen waving placards bearing messages directed at authorities, blowing whistles, and carrying twigs.
11:36am: A section of Kenyans assemble in the CBD to demand justice for Albert Ojwang, with concerns mounting over the protests disrupting the Budget reading process.
9:10am: Mbadi arrives at the National Treasury offices at Harambee Avenue in the Nairobi Central Business District (CBD) for a meeting with Treasury officials ahead of the Budget reading.
8:29am: Expressing his confidence in the upcoming Budget, Mbadi notes that despite it being the largest in Kenyan history, the 2025/2026 Budget is not overambitious. He asserts that resources were allocated to critical areas for the ordinary Kenyan, such as education, health, agriculture, and employment opportunities.
7:53am: CS Mbadi looks back at last year’s Budget presentation that was rocked by the anti-Finance Bill protests. He notes that during the development of the new Budget, the government was keen on the input of the public, including Gen Zs, the business community, and from people at the grassroots.
7:50am: Treasury CS Mbadi prepares to depart his Karen residence ahead of his trip to Parliament to read the Budget. He terms the day as his “date with Kenyans” expressing hope and optimism for a fruitful day.
