National Treasury Cabinet Secretary John Mbadi/FILETreasury Cabinet Secretary John Mbadi has proposed an allocation of Sh217.3 billion for road development in the 2025/26 financial year, as part of a broader investment in the country’s transport infrastructure.
While presenting the budget in Parliament, Mbadi stressed the government’s commitment to expanding the transportation network, covering roads, rail, and air, to cut travel time, reduce logistics costs, and improve access to markets.
The allocation includes Sh115.6 billion for maintenance of roads, Sh70.8 billion for rehabilitation of roads and Sh30.9 billion for construction of roads and bridges.
This is an increase from last year's allocation of Sh193.4 billion where Sh86.2 billion was for construction of roads and bridges, while Sh37.7 billion was meant for rehabilitation of roads and Sh69.5 billion for road maintenance.
In a bid to improve rail transport and construction of ports, Mbadi proposed the following allocations.
Sh37.1 billion for rail transport and infrastructure, Sh600 million for Kenya Ferry Ramp in Mombasa and acquisition of ferries for Lake Victoria and Sh300 million for Nairobi Bus Rapid Transport Project.
Airstrips construction and expansion has been allocated Sh300 million and Sh300 million for promotion of e-mobility project.
In the 2024/25 year, the sector had been allocated Sh25.2 billion.
This included Sh2.4 billion for infrastructure development at Dongo Kundu Special Economic Zone, Sh1 billion for Nairobi Bus Rapid Transport Project, Sh316 million for promotion of e-mobility Project, and Sh239.4 million for the Development of Nairobi Railway City.
In the financial year 2024-25, Ndung’u proposed additional Sh200 million for acquisition of ferries for Lake Victoria to facilitate movement of goods and people in the inland waters.
In terms of reliable energy supply, the government plans to enhance renewables, oil field development, wider LPG use, and accelerate the shift to electric mobility to cut emissions and improve transport.
To achieve this, it has allocated Sh62.8 billion.
Sh31.6 billion, Mbadi said, will towards the national grid system, Sh16.3 billion rural electrification and Sh11.5 billion for geothermal generation.
Alternative energy technologies gets Sh2.1 billion while development of nuclear energy has been allocated Sh0.7 billion.
The government has already boosted energy access and clean power generation, added 774,000 electricity connections, and expanded infrastructure.
In the last financial year, the sector had been Sh64 billion meaning a slight reduction of Sh1.2 billion. In the last 2024/25 budget, the sector got Sh69.7 billion.
This included Sh27.8 billion for the national grid system Sh24.0 billion for rural electrification Sh14.0 billion for development of geothermal energy, Sh2.2 billion for alternative energy technologies, and Sh920 million for development of nuclear energy.
