MPs budget races to Sh50bn mark as MDAs sustain cuts

LAWMAKERS have emerged as the biggest winners in next year's budget after approving a staggering Sh48 billion allocation for Parliament—a Sh5 billion increase from the current year, even as ordinary citizens face higher taxes and cuts to essential services.

The budget includes Sh28.6 billion for the National Assembly, Sh8.2 billion for the Senate, Sh9.4 billion for Parliamentary Joint Services, and Sh2.8 billion for the Parliamentary Service Commission.

This revelation, buried in the Budget and Appropriations Committee (BAC) report, exposes the uncomfortable reality of Kenya's 2025/26 budget: sacrifice appears to be a demand made only of citizens, not their leaders.

The parliamentary windfall comes at a time when National Treasury officials are pleading empty coffers to justify brutal cuts across essential services.

The CS John Mbadi-led National Treasury says it is unable to fund critical interventions, including the recruitment of police constables, police insurance, and the integration of village elders in the state payroll.

Students who are expected to join various universities in September have not been provided with Sh17 billion for Helb loans.

TSC has also missed out on the Sh7.3 billion it expected to spend on converting 20,000 interns to permanent and pensionable terms of service, with the health budget not funded to the tune of Sh70 billion.

A Sh876 billion budget deficit and austerity measures have squeezed several critical sectors like health and education in the spending plan approved by the Budget and Appropriations Committee (BAC) chaired by Alego Usonga MP Samuel Atandi.

Out of the Sh4.23 trillion budget, the committee approved Sh27.8 billion for the judiciary and Sh8.7 billion for the office of the Auditor General, and Sh9.6 billion for Equalisation Fund.

BAC justified the allocation, saying they were aligned with the ceilings set in the 2025 Budget Policy Statement. The BPS, however, set a ceiling for Parliament at Sh42.5 billion, which Treasury also stated in the estimates.

“Parliamentary Service Commission and the judiciary submitted an allocation of Sh49.49 billion and Sh27.7 billion respectively,” BAC said in the report tabled in Parliament yesterday.

Lawmakers have argued that the increase was necessary for a stronger oversight of government, improving services at constitutency offices and modernising Parliament operations.

Regardless, the Education accounts for the largest share of the budget at Sh701 billion including capitation for schools, TSC, and learning infrastructure.

BAC has in the adjustments provided Sh6 billion for the administration and invigilation of national examinations – KCPE and KCSE.

Energy, Infrastructure, and ICT sector got the second highest allocation of Sh500 billion being for roads (Sh195 billion), Sh119 billion for Housing, and Sh92 billion for energy and petroleum sector.

The rail and air transport has been provided Sh46 billion. Besides the money for operations, MPs would also have Sh58 billion in allocations to the NG-CDF.

Kenya Revenue Authority has been allocated Sh32 billion while Sh16.6 billion has been set aside for global fund on Malaria, TB, and HIV, and Sh3.3 billion for community health promoters.

Kenya is poised to spend Sh9.6 billion on subscriptions to the African Union and other international organisations.

The national security sector is also among the big beneficiaries with Sh264 billion, of which the Defence ministry would get Sh213 billion and Sh51 billion to the NIS.

Among the increments – totaling Sh13 billion for Defence, is Sh2 billion for military recruitments and Sh5 billion to boost KDF operations in Somalia.

The MPs have provided Sh136 billion to the health sector which include Sh5 billion to Kenya Medical Supplies Authority, Sh8.8 billion to KMTC, and Sh4 billion towards UHC.

In what would rescue farmers who faced uncertainty amid budget cuts, MPs have provided Sh8 billion to the fertiliser subsidy programme.

Farmers are tipped to reap from Sh2 billion for sugar sector reforms and Sh2 billion for the coffee sector.

While the total budget is projected at Sh4.23 trillion, the final estimates have been reduced by Sh58 billion.

“This downward revision signals a cautious approach to fiscal planning, aimed at aligning spending commitments with available resources,” the Atandi-led committee said.

Development expenditure has reduced by Sh32 billion, a situation feared as posing danger to health, infrastructure, education and other capital intensive projects.

Despite the call for austerity measures, the national government’s recurrent expenditure is set to increase by Sh59 billion.

Whereas development budget is set to increase by Sh91 billion compared with the current year’s, MPs are pessimistic.

“Historically, development allocations tend to be front-loaded in the original estimates but are frequently revised downwards in supplementary budgets,” MPs said.

“The projected increase should be interpreted cautiously as it may not translate into actual spending unless structural bottlenecks in development execution are addressed.”

MPs have also raised concerns about increased spending from the consolidated fund services, with interest payments alone taking up Sh1.1 trillion.

This is even as the committee further warned that revenue shortfalls threaten fiscal sustainability and effective budget execution.

MPs further raised concerns that several MDAs were still in wasteful spending, singling out substantial costs in office rent.

“There is need for the government to reassess its office rent policy and explore options of housing these agencies within existing government institutions.”

Various ministries, state departments, and agencies have also sustained cuts or increments (case by case basis) after deliberations with various House committees.

Among the winners is the Office of the President, which is set for Sh30 million raise, bringing the new allocation to Sh5.37 billion.

Deputy President Kithure Kindiki’s office has been allocated Sh3.07 billion while Prime Cabinet Secretary Musalia Mudavadi’s has been provided with Sh866 million.

State House budget has been retained at Sh8.6 billion as was in the estimates, at a time when the National Treasury is shedding Sh7 billion.

Treasury had been allocated Sh118 billion before MPs reduced the amount to Sh111 billion.

Roads budget is up by Sh4 billion to Sh199 billion, so is Housing which is tipped for Sh119 billion.

Agriculture has been allocated Sh49 billion, Sh9.3 billion to polls agency IEBC, Sh387 billion to Teachers Service Commission, and Sh38.1 billion to the Correctional Services department (Prisons).

EACC is tipped for Sh80 million more for refurbishment of the headquarters and Sh50 million for hiring more staff and boost operations.

Judges who were eyeing a pay rise may also smile all the way to the bank with the proposed increment of Sh700 million for the emoluments.

Projects worth Sh233 billion are unfunded including Sh1 billion for OAG to cater to expanded audit, and Sh1 billion for recruitment of additional judges.

“This reduction is expected to impact key initiatives including recruitment of additional magistrates which is crucial of addressing case backlogs.”

To fund the deficit, the government plans to borrow Sh592 billion locally and Sh284 billion from foreign lenders.

As the strain persists, county governments must make do with a flat Sh405 billion equitable share despite inflation and growing service demands.

Social protection programs saw no meaningful increases despite soaring living costs. And the environment sector's ambitious 15 billion trees target remains underfunded.

INSTANT ANALYSIS

As Kenya’s Sh4.23 trillion budget heads to implementation, MPs must reconcile their Sh48 billion allocation with the sacrifices demanded of ordinary Kenyans. With health collapsing, counties underfunded, and education in crisis, the question lingers: Is this fiscal prudence—or privilege?