Treasury Cabinet Secretary John Mbadi is today expected to present the 2025/2026 budget at Parliament buildings in Nairobi.

President William Ruto’s government is set to spend over Ksh.4.2 trillion in the 2025/26 financial year, which the exchequer aims to finance through debt, ordinary revenue, grants, fees charged for government service, and borrowing.

Mbadi is expected to pronounce the revenue-raising measures, with a target of tax collection now set at Ksh.2.7 trillion, 64 percent of the funding required.

Treasury hopes to collect Ksh.560 billion in government levies and fees in the form of Appropriations-in-Aid.

This pushes the total revenue to Ksh.3.3 trillion, leaving a budget gap of nearly Ksh.900 billion.

At the same time, Kenya expects grants of Ksh.46.9 billion, leaving a Ksh.876 billion budget deficit to be financed through borrowing.

The government intends to borrow more than two-thirds of it locally—at Ksh.592 billion—and the other Ksh.284 billion externally.

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It will be Mbadi’s first budget as the second finance minister under the Kenya Kwanza administration.

At the same time, Mbadi will be highlighting the revenue-raising measures, with a target of tax collection set at Ksh.2.7 trillion.

Meanwhile, the Treasury plans to collect Ksh.560 billion in government levies and fees.

According to the budget document, Kenya is expecting grants of Ksh.46.9 billion, leaving some significant deficit that can be financed through borrowing both locally and internationally.

Education sector is the biggest winner in terms of allocation in the national government budget, receiving Ksh701.1 billion, representing 28.1 percent.

National security has been allocated Ksh251 billion.

The agriculture sector will receive Ksh78 billion, which includes Ksh8.2 billion for fertilizer subsidies and Ksh10.2 billion to support value chain development.