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The National Assembly on Thursday passed the Finance Bill 2025 and now awaits presidential assent.
The Finance Bill 2025 is set to help the government collect additional revenue to fund its Sh4.2 trillion 2025/26 budget with major investments directed towards infrastructure, education, healthcare, housing and MSME support.
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National Assembly chambers
Education Investment
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Education receives the largest allocation in the budget, approximately Sh701.1 billion.
A total of Sh387.2 billion has been set aside for the Teachers Service Commission, with Sh7.2 billion earmarked specifically for hiring intern teachers.
The Free Day Secondary Education programme will receive Sh51.9 billion, while Sh28.9 billion has been allocated to Junior Secondary Capitation.
The government has further committed Sh7 billion to Free Primary Education, Sh5.9 billion for national examinations, and Sh3 billion to support the School Feeding Programme.
Education Cabinet Secretary Julius Ogamba
For infrastructure development, primary and secondary schools will get Sh1.7 billion, while Technical and Vocational Education and Training (TVET) institutions will benefit from Sh1.4 billion for infrastructure improvements.
Additionally, Sh41.5 billion has been allocated to the Higher Education Loans Board (HELB), Sh16.9 billion for university scholarships, and Sh7.7 billion for TVET capitation and scholarships.
The government anticipates that the additional funding will ease the burden on parents while creating more job opportunities for teachers and promoting skills development in vocational training.
Infrastructure and Transport
The 2025/26 budget allocates over Sh318 billion to infrastructure projects, including road construction, rural electrification, last-mile connectivity, and digital infrastructure.
These investments are vital for enhancing access between rural and urban areas, fostering regional integration, and supporting industrial corridors.
The government anticipates that better roads, reliable electricity, and internet connectivity will reduce travel costs, improve security, and unlock economic opportunities, especially in rural areas.
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President William Ruto during the launch of the construction of a 65-Kilometre road network in Ongata Rongai
Security and Defence
According to the budget estimates, the Defence Ministry is set to receive Sh202.3 billion, while the National Police Service has been allocated Sh125.7 billion.
The National Intelligence Service will get Sh51.4 billion, with Sh32.5 billion earmarked for Internal Security and National Administration. The Prisons Services will receive Sh38.1 billion.
An additional Sh10 billion has been proposed for leasing police motor vehicles, alongside Sh3.6 billion for the Police Modernisation Programme.
To boost efforts in combating crime and improving the administration of justice, Sh1.2 billion has been set aside for the construction and modernisation of national forensic facilities.
Police recruits pass out parade in Kiganjo
Healthcare and Universal Health Coverage
The healthcare sector has been allocated Sh138.1 billion aimed at advancing Universal Health Coverage (UHC).
The funding will support county health services, the National Hospital Insurance Fund (NHIF) transition to the Social Health Insurance Fund (SHIF), cancer centers, disease surveillance, and medical supplies.
By focusing on preventive healthcare measures and reducing out-of-pocket expenses, the government plans to improve healthcare accessibility, particularly in rural areas, while creating job opportunities in the sector.
Housing and Urban Development
The housing sector will receive Sh120.2 billion, with a focus on scaling up the Affordable Housing Programme (AHP), urban renewal, and slum upgrading.
The government’s objective is to create job opportunities in the construction sector, improve urban living conditions, and provide low-cost housing for low-income earners, particularly youth and informal workers.
Investments in urban infrastructure and safety will enhance the quality of life for many Kenyans, making cities safer and more sustainable.
President William Ruto inspecting an affordable housing project
Agriculture and Food Security
The agriculture sector has been allocated Sh54.6 billion in the new budget. The funds will go towards fertiliser subsidies, irrigation projects, agro-processing, and food resilience programmes.
The allocation is aimed at addressing food insecurity, supporting smallholder farmers, creating jobs within agro-value chains, enhancing food production, and reducing the cost of farming inputs.
The government’s investment in the sector is also expected to contribute to rural development and promote sustainable employment.
A Safety Net for Vulnerable Groups
Social protection programs have been allocated Sh41.3 billion, which will be directed towards cash transfers for the elderly, orphans, persons with disabilities (PWDs), youth empowerment, and women’s enterprise funds.
This funding aims to provide financial security for vulnerable groups, promote resilience, and foster inclusive economic growth.
By supporting entrepreneurship and promoting dignity for the elderly and disabled, the government seeks to reduce poverty and inequality.
William Ruto launches ICT hub
Strengthening Kenya’s Technological Capacity
A significant portion of the budget, Sh141 billion, will be directed towards boosting Kenya’s digital economy.
This includes investments in internet connectivity, e-government platforms, Konza Technopolis, and digital public services.
The government's focus on digital inclusion is designed to enhance access to online government services, stimulate digital job creation, and promote entrepreneurship, particularly among the youth.
The government plans to position Kenya as a technology-driven economy, fostering innovation and economic growth.