Treasury Cabinet Secretary John Mbadi at the floor of the house reading budget statement for the year 2026-2027 at Parliament Building in Nairobi on June 11, 2026./DOUGLAS OKIDDY
Treasury Cabinet Secretary John Mbadi has proposed an allocation of Sh220.4 billion for road development in the 2026/27 financial year, as part of the government's efforts to improve connectivity, lower transport costs and support economic growth.
While presenting the budget in Parliament on Thursday, Mbadi said infrastructure remains the backbone of economic transformation, providing the connectivity, energy and systems needed to support productive activities and improve livelihoods.
The allocation includes Sh118.1 billion for road maintenance, Sh58 billion for rehabilitation of roads and Sh44.3 billion for the construction of roads and bridges across the country.
This represents an increase from the Sh217.3 billion allocated to the roads sector in the 2025/26 financial year, when Sh115.6 billion was set aside for road maintenance, Sh70.8 billion for rehabilitation of roads and Sh30.9 billion for construction of roads and bridges.
"Infrastructure is the backbone of economic transformation. It provides the connectivity, energy and systems needed to power productive activities and sustain human wellbeing," Mbadi said.
He said infrastructure investments help reduce transaction costs, open markets and deliver long-term economic benefits.
To expand railway transport and strengthen national connectivity, Mbadi proposed Sh38.4 billion for railway projects.
The budget also proposes Sh400 million for the Kenya Ferry programme in Likoni, Sh1 billion for the development of public ferry landing ramps in Lake Victoria, including Mbita and Sena Island in Suba North and Suba West constituencies, and Sh150 million for acquisition of a public ferry for Lake Victoria.
In addition, Sh582 million has been allocated to the Nairobi Transport Project, which the government says will help reduce congestion and improve commuter mobility in the capital.
The energy sector has also received significant funding under the budget, with the Treasury proposing Sh32.7 billion to support electricity access and energy infrastructure development.
Of the allocation, Sh22 billion will go towards rural electrification programmes, Sh7.5 billion for the national grid system and Sh3.2 billion for alternative energy technologies.
Mbadi said the investments are intended to expand electricity connectivity, lower energy costs and promote sustainable economic growth.
The allocation marks a reduction from the Sh62.8 billion allocated to the energy sector in the 2025/26 financial year.
In the previous budget, the government allocated Sh31.6 billion to the national grid system, Sh16.3 billion for rural electrification, Sh11.5 billion for geothermal generation, Sh2.1 billion for alternative energy technologies and Sh700 million for nuclear energy development.
Mbadi told Parliament that some of the planned energy projects will be financed through the National Infrastructure Fund as the government seeks additional resources to support critical infrastructure development.
The allocations come as the government continues to invest in transport and energy infrastructure as key drivers of economic growth, regional integration and improved access to services.
