Kenya: Education, State Ministries and Infrastructure Take Lion's Share in Mbadi Budget

NAIROBI,Kenya, June 11-Education, national government ministries and infrastructure projects emerged as the biggest winners in Treasury Cabinet Secretary John Mbadi's 2026/27 budget as the government channelled the largest share of public spending towards human capital development, public service delivery and economic growth.

The spending plan projects total expenditure of Sh4.82 trillion against revenues of Sh3.63 trillion, leaving a fiscal deficit of Sh1.15 trillion, or 5.5 percent of GDP, which will be financed through a combination of domestic and foreign borrowing.

At the center of the budget is the education sector, which secured Sh784.5 billion, representing 26.8 percent of all ministerial allocations and cementing its position as the government's single largest spending priority.

The allocation underscores the administration's continued emphasis on education as a key pillar of economic transformation, with the Teachers Service Commission (TSC) accounting for the largest share at Sh424.3 billion.

Keep up with the latest headlines on WhatsApp | LinkedIn

Higher Education was allocated KSh163.9 billion, Basic Education Sh136.6 billion, while Technical and Vocational Education and Training (TVET) programmes received Sh58.5 billion. Science, Innovation and Research was allocated Sh1.3 billion.

Additional allocations within the sector include Sh56.3 billion for the Higher Education Loans Board (HELB), Sh54.6 billion for Free Day Secondary Education, Sh30.9 billion for university scholarships and KSh30.7 billion for Junior Secondary School capitation.

"Kenya's future depends on developing strong human capital," said Mbadi in his budget statement.

"To this end, we will continue to strengthen quality learning, training and research, promote equity and inclusivity, scale up investment in education and fortify education-to-industry linkages."

Beyond education, National Government Ministerial Allocations emerged as the second-largest beneficiary, receiving Sh531.3 billion, equivalent to 18.2 percent of total allocations.

The funding will support the operations of ministries, departments and agencies tasked with implementing government programmes across sectors.

Infrastructure maintained its place among the government's top priorities after the Energy, Infrastructure and ICT sector received Sh373.7 billion.

Roads absorbed the bulk of the allocation at Sh220.4 billion, reflecting the government's continued push to improve connectivity and support economic activity.

Rail transport projects were allocated Sh38.4 billion while the energy sector received Sh30.9 billion, including Sh20.2 billion for rural electrification and Sh7.5 billion for expansion of the national grid.

Public Administration and International Relations followed closely with an allocation of Sh363.9 billion, highlighting the government's commitment to sustaining public administration functions and Kenya's diplomatic engagements.

National Security ranked fifth among the largest allocations, receiving Sh316.2 billion, or 10.8 percent of total allocations.

The funding comes amid continued investments in security modernization, intelligence gathering and law enforcement capabilities.

Within the broader security architecture, allocations include Sh252.1 billion for Defence, Sh144.7 billion for the National Police Service, Sh64.1 billion for the National Intelligence Service and KSh42.6 billion for the Kenya Prisons Service.

The Governance, Justice, Law and Order sector was allocated Sh177.2 billion to support Parliament, the Judiciary, constitutional commissions and oversight institutions.

Parliament will receive Sh50.9 billion while the Judiciary was allocated Sh30.4 billion.

Health received Sh121.2 billion as the government continues implementing Universal Health Coverage reforms and financing primary healthcare services, referral hospitals and the Social Health Authority framework.

Environment Protection, Water and Natural Resources was allocated Sh111.7 billion, reflecting increased attention to water access, environmental conservation and climate resilience initiatives.

Agriculture, Rural and Urban Development, a sector critical to food security and livelihoods, received Sh94.3 billion to support ongoing reforms, irrigation projects and agricultural productivity programmes.

At the bottom of the allocation table was Social Protection, Culture and Recreation, which received Sh49.8 billion, equivalent to 1.7 percent of total allocations.

Despite being the smallest allocation among the major sectors, the funding will support cash transfers for vulnerable households, elderly persons, persons living with severe disabilities and orphans.

The allocation pattern reveals a government prioritizing education, public administration, infrastructure and security at a time when fiscal pressures remain elevated.

Together, the five largest sectors account for more than 80 percent of total ministerial allocations, illustrating where the administration is placing its biggest bets as it seeks to accelerate growth, create jobs and maintain stability while navigating a challenging fiscal environment.

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.