Cabinet approves Sh4.2 trillion budget for 2025-26

Cabinet has approved a Sh4.2 trillion budget for the 2025/26 financial year, allocating Sh3.09 trillion to recurrent expenses, Sh725.1 billion to development, and Sh5 billion to the contingency fund.

The budget also proposes a shareable revenue of Sh2.8 trillion, with counties set to receive Sh405.1 billion as their equitable share and an additional Sh10.6 billion for the Equalisation Fund.

The government has projected economic growth at 5.3 per cent in 2025 and 2026, following a 5.6 per cent expansion in 2023, up from 4.9 per cent in 2022.

="https://www.standardmedia.co.ke/opinion/article/2001511489/why-2025-budget-must-fix-tax-chaos-county-funding-gaps-and-rising-debt">Cabinet has also approved Sh344.8 billion in additional spending under the 2024/25 Supplementary Budget II, with Sh199 billion directed to recurrent needs and Sh145.8 billion to development projects.<

To boost revenue collection, the government plans to implement tax reforms under the Medium-Term Revenue Strategy.

At the same time, the government will scale up public-private partnerships to support service delivery and infrastructure projects in 2025/26.

Cabinet has also approved an agreement between Kenya and Singapore to eliminate double taxation and prevent fiscal evasion, a move seeking to strengthen trade and investment ties between the two countries.

Major upgrades at Jomo Kenyatta International Airport have also been approved, including the installation of E-Gates, additional immigration booths, and enhanced security measures to ease passenger flow