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Key state programme unfunded in Sh4.23 trillion budget

Initiatives affected include health, education, agriculture, national government operations, foreign affairs, police and defence

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by ELIUD KIBII

News06 June 2025 - 05:57
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In Summary


  • While the education sector accounts for the largest share of the budget at Sh7001 billion, scholarship funds to the tune of Sh17 billion for 208,000 students expected to join various universities was not allocated.
  • The Education committee noted there were substantial deficits within the Department of Higher Education, particularly in student-centred areas such as loans and sponsorship under the new funding model.

Treasury CS John Mbadi when he met with the board of the Nairobi International Financial Centre Authority /HANDOUT

Critical government programmes remain unfunded in the Sh4.23 trillion budget for the financial year starting July 1. 

This has left crucial sectors underfunded, risking service delivery in education, security, health and agriculture, even as the government struggles with fiscal constraints.

While the education sector accounts for the largest share of the budget at Sh701 billion – representing 28.1 per cent – scholarship funds to the tune of Sh17 billion for 208,000 students expected to join various universities were not allocated. 

The Education committee noted there were substantial deficits within the Department of Higher Education, particularly in student-centred areas such as loans and sponsorship under the new funding model.

“If unaddressed, these financial gaps could significantly affect university operations, potentially limiting institutional resources, academic programmes and overall efficiency,” the report said. 

The shortfall could affect student welfare, restrict access to financial aid, reduce opportunities for scholarships and increase financial strain on students.

While the National Police Service has been allocated Sh125 billion, it was underfunded to the tune of Sh22.1 billion. 

The additional budget included Sh3.5 billion to recruit 10,000 officers, Sh767.4 million for pending bills, Sh9.8 billion for police insurance and Sh8.1 billion for security operations.

And while Sh35 billion was allocated for Internal Security and National Administration, it did not cover Sh1 billion needed for operationalisation of Administration Units, Sh2.5 billion to integrate village elders and Sh2 billion needed to buy motorbikes for National Government Administrative Officers.

Defence got Sh200 billion, but additional funding for recruitment was not given.

The Foreign Affairs and Defence Committee noted that in 1992-1997 and 1998-2000, the Kenya Defence Forces did not recruit, resulting in significant deficiencies in the military. 

The military was also not given Sh1 billion for the maintenance of major assets and equipment. MPs in March raised concerns about the state of military equipment used by Kenyan soldiers, particularly those battling Al Shabaab in Somalia. 

A report in Parliament said the equipment serviceability state of Kenya’s military is way below the UN Statement of Unit Requirement.

Observations by the Departmental Committee on Defence, Intelligence and Foreign Relations, captured in the report, said the Defence ministry needs Sh5 billion to upgrade the equipment, whose state was attributed to “extended deployment in Somalia against a proportionate budget over time”.

The health sector has a total of Sh136.8 billion, including Sh54 billion for national Referral and Specialised Services. 

However, there is an underfunding of Sh2.5 billion for the modernisation of hospitals to improve patients’ experience. 

Some Sh944 million to cater for unpaid salaries and Moi Teaching and Referral Hospital pension, as well as Sh1.88 billion salary shortfalls at Kenyatta University Teaching, Referral and Research Hospital, were not covered.

The Agriculture and Rural Development sector has been allocated Sh78 billion to support food security and lower the cost of living. 

This includes Sh8 billion for the fertiliser subsidy programme, Sh10 billion for the national Agricultural Value Chain Development project, Sh2 billion for sugar sector reforms and Sh2 billion for the coffee cherry fund. 

The fertiliser subsidy programme has been underfunded by Sh10 billion, which the Agriculture committee says could impact agricultural productivity and overall economic stability.

At the State Department of Foreign Affairs, additional funding of Sh500 million for multiple accreditation was not granted, as well as Sh68 million to cover shortfalls in missions, Sh350 million to refurbish government-owned properties and Sh350 million for the operationalisation of the Foreign Service Academy. 

The sister state department of Diaspora affairs was not funded Sh163 million for emergency response and evacuation of Kenyans abroad in case of distress.

The Budget committee noted that the government continues to face the complex challenge of balancing fiscal consolidation efforts with the need to implement supportive policies across critical sectors of the economy. 

This funding gap threatens important services in education, health, agriculture and election preparations, as MPs seek ways to fill the shortfall or face public dissatisfaction.


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