Kenya Cabinet Approves KSh 4.2 Trillion Budget for 2025/26

Kenya's Cabinet, led by President William Ruto, has approved a KSh 4.2 trillion budget for the 2025/26 fiscal year, which will now be submitted to Parliament for approval. This budget includes KSh 3.09 trillion for recurrent spending, KSh 725.1 billion for development, KSh 436.7 billion for county transfers, and KSh 5 billion for the Contingency Fund. The budget reflects a total expenditure of 22.1% of Kenya's GDP and aims to address key economic priorities such as reducing living costs and fostering job creation. Additionally, the Cabinet approved an extra KSh 344.8 billion for the 2024/25 budget to support ongoing projects. The government is optimistic about economic growth, projecting a rate of 5.3% for 2025 and 2026, an increase from last year's estimate. These fiscal strategies are part of the Bottom-Up Economic Transformation Agenda aimed at ensuring sustainable growth and fiscal stability.