Budget rises by Ksh393 billion as Ruto Assents to Supplementary Appropriations Bill

File image of President Ruto

President William Ruto has signed into law the Supplementary Appropriations Bill for the 2025/2026 financial year, increasing the national budget by Ksh393 billion. The bill was passed by the National Assembly with amendments on Thursday, April 2.

The revised budget raises total government expenditure from Ksh4.301 trillion to Ksh4.695 trillion, representing a nine point one percent increase.

Current expenditure rises by Ksh229.4 billion, while capital expenditure grows by Ksh134.46 billion.

In addition, the government approved Ksh41.3 billion in expenditures under Article 223 of the Constitution to support security operations, emergency relief in Arid and Semi-Arid Lands (ASAL), and key infrastructure projects.

The security sector is the largest beneficiary, receiving Ksh60 billion in additional funding.

The State Department for Internal Security and National Administration has been allocated Ksh11.9 billion, including Ksh3.9 billion for security operations, Ksh2 billion for the National Integrated Security Command and Control System (NISCCS), Ksh2 billion to compensate victims of demonstrations, and Ksh4 billion for police modernization.

The Independent Electoral and Boundaries Commission (IEBC) will receive Ksh2.9 billion to settle pending legal bills.

The education sector received substantial top-ups, including Ksh24.2 billion for the Teachers Service Commission to cover salary shortfalls and health insurance contributions, plus Ksh3 billion for pending medical cover bills.

The Higher Education Loans Board has been allocated Ksh4.1 billion, bringing its total allocation to Ksh45.6 billion.

Universities receive Ksh3.88 billion to clear salary arrears from the 2017–2021 Collective Bargaining Agreement, alongside Ksh6 billion directed to specific institutions including Moi University and Kabarnet University.

Additional allocations include Ksh1.5 billion to the University Funding Board and Ksh2.6 billion for the Kenya-China TVET Project Phase III.

In the health sector, Ksh4.7 billion has been allocated through the State Department for Medical Services, alongside Ksh775 million for Public Health and Professional Standards.

Ksh4 billion will settle pending bills of the defunct National Hospital Insurance Fund. Other allocations include Ksh675 million for upgrading Level 4 hospitals, Ksh5.4 billion for the doctors’ internship programme (raising the total to Ksh9.8 billion), Ksh2.5 billion for Moi Teaching and Referral Hospital, and Ksh2.6 billion for vaccine programmes.

Infrastructure development continues to receive attention, with Ksh4.5 billion allocated to Horn of Africa Gateway projects and Ksh25 billion to the Affordable Housing Programme under the BETA agenda.

Agriculture has been allocated over Ksh17 billion, including Ksh10 billion for the fertilizer subsidy programme. Other allocations include Ksh1 billion each for tea reforms and agricultural credit, Ksh2 billion for sugar reforms, and Ksh1.5 billion for food security and crop diversification.

The Blue Economy and Fisheries Department receives Ksh350 million to host an Oceanic Conference promoting marine conservation.

In environmental conservation, the Forestry Department is allocated Ksh2 billion for tree growing and rangeland restoration, and Ksh500 million under the Watershed Improvement Project (KEWASIP).

To finance the expanded budget, the government plans to enhance non-tax revenue through privatization and securitization initiatives. The Kenya Revenue Authority has received an additional Ksh17.6 billion to strengthen tax collection and reduce reliance on public borrowing.

This comes weeks after Ruto signed three bills aimed at improving civil registration, streamlining crop regulation, and professionalizing social work.

The Births and Registration (Amendment) Bill (2024), sponsored by Gilgil MP Martha Wangari, will expand registration services by establishing at least one office in each sub-county.

The Pyrethrum Repeal Bill (2024), sponsored by National Assembly Majority Leader Kimani Ichung’wah, harmonizes management of strategic crops under a single legislative framework.

The Social Work Professionals Bill (2023), sponsored by Kaiti MP Joshua Kimilu, establishes the Institute of Social Work Professionals and the Social Work Professionals Board to regulate the sector and ensure professional standards.