President William Ruto today, Tuesday, February 11, chaired a special Cabinet meeting at State House, Nairobi, where the Cabinet approved the KSh 4.2 trillion budget for the 2025/26 financial year.
The approved 2025 Budget Policy Statement (BPS) will now be forwarded to Parliament for deliberation.
In the KSh 4.2 trillion budget, KSh 3.09 trillion has been set aside for recurrent expenditure, KSh 725.1 billion for development, KSh 436.7 billion in county transfers, and KSh 5 billion for the Contingency Fund.
The BPS, the Cabinet said, outlines the government’s economic priorities, focusing on sustaining growth, ensuring fiscal stability and promoting inclusive green development.
The Cabinet outlined six key priorities, that is reducing the cost of living, eradicating hunger, creating jobs, expanding the tax base, improving foreign exchange balances, and fostering inclusive growth which will maintain economic momentum.
"These will be achieved through strategic investments in key economic sectors, strengthening production and market access, and attracting local and foreign investments," said the Cabinet.
