The National Treasury has trimmed Kenya’s 2025/2026 budget by Ksh23.972 billion, signaling a shift towards austerity as the government aims to rein in public spending. The Hustler Budget, initially set at Ksh4.263 trillion, now stands at Ksh4.24 trillion.
According to budget estimates released on Monday, May 5, the government projects a public debt requirement of Ksh1.9 trillion to bridge the financing gap.
Treasury Cabinet Secretary John Mbadi said the government plans to spend Ksh4.67 billion on public service salaries and allowances, while Ksh235 billion has been allocated for pensions and gratuities.
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Among the hardest hit by the budget cuts is the Treasury itself, losing Ksh6.97 billion. The Executive Office of the President is also set to receive Ksh3.4 billion less, dropping from Ksh4.491 billion to Ksh3.88 billion.
Additionally, the National Intelligence Service (NIS) will see its budget reduced by Ksh4.2 billion, from Ksh55.65 billion to Ksh51.45 billion.
The State Department for Immigration and Citizen Services will receive Ksh11.77 billion, a decrease of Ksh1.2 billion from the previous allocation.
Despite the overall reductions, key sectors have received increases. The Ministry of Defence, National Police Service, and State Departments for Basic Education and Higher Learning are among the winners in the new budget. The Medical Services department has also secured more funding.
With the 2027 general elections approaching, the Independent Electoral and Boundaries Commission (IEBC) has received a significant boost—its allocation rising from Ksh3.85 billion to Ksh9.6 billion, an increase of Ksh5.75 billion.
The Cabinet last week resolved to cap the fiscal deficit at 4.5% of GDP for the 2025/26 financial year, down from 5.3% in 2023/24 and 5.1% in 2024/25.
This move comes amid mounting pressure from international lenders such as the International Monetary Fund (IMF) and the World Bank for Kenya to tighten its fiscal belt.
The revised estimates will be tabled in Parliament for debate and approval before the national budget is read in mid-June, ahead of the new fiscal year beginning July 1.