President William Ruto has officially signed the Supplementary Appropriations Bill into law, authorizing a Ksh 393.2 billion increase in government spending for the 2025/26 fiscal year. This 9.1% budgetary hike raises the total national budget to Ksh 4.695 trillion, up from the original estimate of Ksh 4.301 trillion.
The additional funding is split between recurrent expenditure (Ksh 229.4 billion) and development projects (Ksh 134.5 billion), with a primary focus on national security, social justice, and the “Bottom-up Economic Transformation Agenda” (BETA).
Key Funding Allocations at a Glance
| Sector / Initiative | Additional Allocation | Primary Purpose |
|---|---|---|
| Security Docket | Ksh 60 Billion | Largest share; includes Ksh 3.9B for active security operations. |
| Education (TSC) | Ksh 45.3 Billion | Addressing teacher salary shortfalls and health insurance. |
| Affordable Housing | Ksh 25 Billion | Accelerating the delivery of state-developed housing units. |
| Agriculture | Ksh 17 Billion | Enhancing productivity; includes Ksh 10B for fertilizer subsidies. |
| Health (NHIF) | Ksh 5.5 Billion | Settling pending bills from the defunct health fund. |
| IEBC | Ksh 2.9 Billion | Clearing unpaid legal bills to restore commission stability. |
| Protest Victims | Ksh 2 Billion | Compensation for victims of the 2024 Anti-Finance Bill protests. |
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Compensation for 2024 Protest Victims
In a significant move toward national reconciliation, the National Assembly approved Ksh 2 billion specifically for the compensation of victims affected by the 2024 Anti-Finance Bill demonstrations. This allocation follows sustained calls from human rights organizations and the public to address the injuries and loss of life recorded during the historic protests.
Strengthening the “BETA” Pillars
The Supplementary Budget doubles down on President Ruto’s core economic priorities:
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- Food Security: The Fertilizer Subsidy Programme receives a massive injection, bringing its total annual allocation to Ksh 18 billion. This is intended to lower production costs for farmers ahead of the planting season.
- Housing: An additional Ksh 25 billion has been funneled into the Affordable Housing Programme to meet aggressive delivery targets for units currently under construction across various counties.
- Environment: The Forestry Department secured Ksh 2 billion to sustain the government’s ambitious national tree-growing campaign.
Restoring Electoral and Health Confidence
The IEBC received Ksh 2.9 billion to settle outstanding legal fees, a move seen as a mechanical necessity to clear the commission’s balance sheet before the 2027 General Election cycle begins in earnest.
In the health sector, Ksh 4 billion of the new Ksh 5.5 billion allocation is earmarked strictly for settling pending bills left behind by the defunct National Health Insurance Fund (NHIF), ensuring that healthcare providers continue to offer services under the new Social Health Authority (SHA) framework without the burden of old debts.
The signing of this Bill provides the Treasury with the legal mandate to release these funds immediately, addressing urgent shortfalls in the civil service and jump-starting infrastructure projects that had stalled due to liquidity constraints earlier in the fiscal year.
