By Andola Andalo Vyshelle
Kenya has unveiled its largest national budget in history, totaling KSh 4.8 trillion for the 2026/27 financial year, with major allocations directed toward education, health, and security.
Treasury Cabinet Secretary John Mbadi presented the budget, emphasizing its focus on improving public services and strengthening national development.
However, the plan has also raised concerns over a projected KSh 1 trillion deficit and the country’s continued reliance on borrowing.
Education: Largest Share of the Budget
Education received the highest allocation at KSh 765 billion. The funds will support the recruitment of 24,000 teachers, expansion of school infrastructure, and provision of learning materials. The government said the investment aims to strengthen the sector and better prepare young people for future opportunities.
Health: Expanding Universal Coverage
The health sector was allocated KSh 177.2 billion, with a focus on strengthening the Universal Health Coverage (UHC) programme under Taifa Care. The funds will be used to upgrade referral hospitals, hire medical interns, and expand access to affordable healthcare services.
Security: Strengthening National Stability
Security was allocated KSh 567.3 billion, with funds earmarked for modernizing defence equipment and supporting grassroots governance structures, including stipends for village elders. The government said the investment is key to maintaining peace and national stability.
Infrastructure: Expanding Connectivity
Infrastructure development received KSh 444 billion, targeting roads, transport systems, and energy expansion projects. Rural electrification is expected to benefit underserved communities, improving access to power for households and businesses.
Debt Concerns Raise Fiscal Questions
Despite the ambitious spending plan, the budget carries a KSh 1 trillion deficit. The government plans to bridge the gap through KSh 1.2 trillion in domestic and external borrowing.
Economists have raised concerns over Kenya’s rising debt levels, warning that continued borrowing could strain future public finances and place a heavier repayment burden on coming generations.