MDAs request additional kshs. 944.2 billion as Budget Committee concludes estimates review

MDAs request additional kshs. 944.2 billion as Budget Committee concludes estimates review

Thursday, May 29, 2025

The Principal Secretary for the National Treasury, Dr. Chris Kiptoo, has informed the Budget and Appropriations Committee that Ministries, Departments, and Agencies (MDAs) have submitted additional funding requests totaling Kshs. 944.2 billion for the Financial Year 2025/26.

Dr. Kiptoo highlighted that out of the total additional requests, critical expenditure obligations amounting to Kshs. 218 billion could not be accommodated within the current budget due to fiscal constraints.

"These expenditures were not accommodated in the FY 2025/26 Budget due to the constrained fiscal framework and will be reviewed for possible funding in the course of implementation should the fiscal situation improve," said Dr. Kiptoo.

The PS made these remarks while appearing before the Budget and Appropriations Committee to discuss revenue and expenditure priorities, as the Committee concluded its review of the Budget Estimates.

Among the key unfunded allocations is Kshs. 39.577 billion requested by the State Department for Education. This includes:

• Kshs. 21.923 billion for Free Day Secondary Education,

• Kshs. 2.6 billion for the School Feeding Programme,

• Kshs. 4 billion for Free Day Junior School, and

• Kshs. 11 billion for School Examination and Invigilation.

The State Department for Medical Services also saw a shortfall of Kshs. 21 billion, comprised of:

• Kshs. 10 billion for the Primary Healthcare Fund, and

• Kshs. 11 billion for the Emergency, Chronic, and Critical Illness Fund.

In the State Department for Public Health and Professional Standards, Kshs. 3.995 billion requested for stipends payable to Human Resource for Health (HRH) Interns was not included in the Budget.

The State Department for Agriculture faced a funding gap of Kshs. 25.234 billion. This includes:

• Kshs. 5.534 billion for sugar sector reforms,

• Kshs. 1.5 billion for MSMEs Agricultural Credit via the Agricultural Finance Corporation (AFC),

• Kshs. 10 billion for the Fertilizer Subsidy Programme,

• Kshs. 2 billion for the Strategic Food Reserve,

• Kshs. 1.7 billion for food subsidies, and

• Kshs. 4.5 billion for tea sector reforms.

Additionally, as the Independent Electoral and Boundaries Commission (IEBC) prepares for the next General Elections, a total of Kshs. 9.2 billion in funding requests remains pending, subject to future review.

Dr. Kiptoo also briefed the Committee on the projected fiscal deficit for FY 2025/26, which stands at Kshs. 876.1 billion. This will be financed through:

• Kshs. 591.9 billion in Net Domestic Financing, and

• Kshs. 284.2 billion in Net Foreign Financing.

The Net Foreign Financing includes:

• Kshs. 211.4 billion in project loans,

• Kshs. 221.2 billion in commercial financing,

• Kshs. 191.8 billion in program loans, comprising Kshs. 170.5 billion from the World Bank's Development Policy Operation (DPO) and Kshs. 21.3 billion from the African Development Bank (ADB),

• Kshs. 340.2 billion in external debt repayments.

With consultations now complete, the Budget and Appropriations Committee is in the final stages of considering all stakeholder submissions and departmental proposals. The Committee is set to table its final report in the National Assembly next week.