Treasury increases spending by Sh316.87bn in first supplementary budget

Treasury has increased the budget by Sh316.87 billion in its supplementary estimates for the 2025-26 financial year, raising total planned expenditure to Sh4.618 trillion.

According to the new estimates, recurrent expenditure accounts for the largest share of the adjustment. Salaries and day-to-day operational costs have risen by Sh201.3 billion.

Development spending receives a boost of Sh86.3 billion, while allocations under the Consolidated Fund Services increase by Sh29.27 billion.

“The National Treasury has received additional expenditure requests to cater for emerging priorities and shortfalls under critical expenditures. Included in the Supplementary Estimates is additional expenditure to cater for salary shortfalls for Ministries Departments and Agencies (MDAs),” said National Treasury CS John Mbadi.

The Treasury itself receives the largest share of the additional funding, with Sh26.1 billion.

Major security and infrastructure agencies also benefit, with the Ministry of Defence allocated Sh24.1 billion and the State Department for Roads Sh23.2 billion.

Other significant increases go to the State Department for Agriculture (Sh22.4 billion), the Teachers Service Commission (Sh21.2 billion), the State Department for Transport (Sh20.9 billion), and the State Department for Higher Education (Sh16.69 billion).

Health and emergency response functions are boosted, with Sh16.26 billion for the State Department for Medical Services and Sh12.87 billion for the State Department for Special Programmes.

Security agencies, including the National Intelligence Service, the Ministry of Interior and National Administration, and the National Police Service, also feature prominently in the increases.

Despite the overall budget expansion, several departments face reductions. The Ministry of ICT and Digital Economy takes the largest cut at Sh3.97 billion, followed by the State Department for Energy at Sh3.56 billion.

Other cuts target devolution, housing, youth affairs, children’s services, gender programmes, the state law office, and the Kenya National Commission on Human Rights.

The supplementary estimates now head to Parliament for debate, where lawmakers are expected to scrutinize the spending.