Inside CS Mbadi’s Sh4.2 Trillion Budget: Defence Wins Big as Education Takes the Hit

Treasury Cabinet Secretary prioritizes security spending while cutting school funding in government’s largest-ever budget

Treasury Cabinet Secretary John Mbadi presented Kenya’s largest-ever budget of Sh4.24 trillion for the 2025/26 financial year on Thursday afternoon, marking a significant 6% increase from the previous year’s allocation.

The budget, which takes effect on July 1, reveals a government prioritizing security over social services, with the Ministry of Defence emerging as the biggest winner while education funding faces substantial cuts.

Defence Ministry Scores Big

The Ministry of Defence secured the lion’s share of budget increases, receiving Sh201 billion in core allocation plus additional funding streams that cement its position as the government’s top priority.

The ministry gained Sh2 billion for military recruitment, Sh5 billion for operations in Somalia, and a further Sh6 billion for general security operations—representing one of the most significant defense budget expansions in recent years.

This military spending boost comes at a time when Kenya continues to face security challenges both domestically and in the region, particularly through its peacekeeping commitments in Somalia under the African Union Transition Mission (ATMIS).

Education Funding Slashed

In stark contrast to defence gains, Kenya’s education sector suffered a devastating Sh5.9 billion cut in capitation allocations across all school levels. Primary schools lost Sh900 million, junior schools Sh2 billion, and senior secondary schools bore the brunt with a Sh3 billion reduction.

The school feeding programme, a critical intervention for millions of vulnerable children, saw its budget slashed by Sh600 million from the planned Sh3.6 billion allocation.

The Treasury justified these cuts as necessary to fund national examination administration and invigilation—services that had surprisingly not been allocated funds in the original budget estimates.

An additional Sh250 million was cut from ICT integration in secondary schools, further hampering the government’s digitization agenda.

Healthcare and Social Services Under Pressure

The budget also reveals concerning cuts to healthcare initiatives.

Universal Health Coverage (UHC) programmes faced significant reductions: Sh2.5 billion was cut from Strategic Response to Public Initiatives, Sh2 billion from the Emergency, Chronic and Critical Illness Fund, and Sh100 million from Primary Health Care. The Health Insurance Subsidy Programme for Orphans and Vulnerable Children lost Sh100 million.

These cuts come at a time when Kenyans are grappling with high healthcare costs and limited access to quality medical services, raising questions about the government’s commitment to its universal healthcare promises.

Infrastructure and Development Take a Hit

The government’s Sh700 billion development budget was reduced by Sh3.5 billion, affecting critical infrastructure projects.

Rural electrification schemes lost Sh520 million, while the tree-growing campaign and rangeland restoration project—key to environmental conservation efforts—was cut by Sh650 million.

University funding also faced the axe, with government-sponsored students in private universities losing Sh1.3 billion in support.

The University of Eldoret’s engineering complex construction and the Open University each lost Sh250 million.

Some Bright Spots

Despite the widespread cuts, certain sectors received modest boosts. Rural electrification for constituencies gained Sh950 million for transformer installations, while street lighting received Sh180 million.

The Directorate of Criminal Investigations (DCI) secured an additional Sh400 million, and police operations under the Inspector General’s office received Sh800 million, including Sh150 million for VHF radio communication equipment.

Agriculture showed mixed fortunes, with the State Department for Crops receiving Sh430 million for the Agriculture and Food Authority to support seeds and seedlings for priority value chains, plus Sh350 million for food security and crop diversification.

CS Mbadi’s budget comes amid challenging economic conditions, with Kenyans facing a persistent cost-of-living crisis and growing public debt concerns. The budget aims to reduce the fiscal deficit from 5% to 4.5% of GDP while supporting the government’s Bottom-Up Economic Transformation Agenda (BETA).

The Treasury Secretary has emphasized plans to expand the tax base and improve collection efficiency rather than imposing additional taxes on already-burdened citizens.

However, the budget’s heavy emphasis on security spending at the expense of social services may raise questions about the government’s priorities during these tough economic times.

This budget represents the first major fiscal policy document from the Ruto-Raila coalition government, following ODM leader Raila Odinga’s entry into the broad-based government.

The allocations reflect the administration’s security-first approach but may face criticism from education and healthcare advocates who argue that social services should take precedence during an economic crisis.

As Parliament scrutinizes the budget estimates, key questions remain about whether this spending pattern truly serves the Bottom-Up Economic Transformation Agenda’s promise to prioritize ordinary Kenyans’ welfare.

The substantial cuts to education and healthcare, sectors that directly impact the most vulnerable populations, suggest a budget that may struggle to deliver on promises of economic recovery and cost-of-living relief.

The coming months will test whether CS Mbadi’s Sh4.24 trillion gamble on security over social services pays dividends for Kenya’s economic recovery or further strains household budgets across the nation.