National Government Budget Implementation Review Report For First Nine Months Fy 2025 26

The first nine months National Government Budget Implementation Review Report covers 1st July
2025 to 31st March 2026 and is the third quarterly report for FY 2025/26. The report has been prepared in compliance with Article 228(6) of the Constitution and Section 9 of the Controller of Budget Act, Cap 429, which requires the Controller of Budget to submit quarterly budget implementation
reports to Parliament for the National and County governments.
The FY 2025/26 budget is the third under the Kenya Kwanza Administration. It is anchored in the fourth
Medium-Term Plan (MTP) (2023-2027) of the Kenya Vision 2030 and is being implemented under the
Bottom-up Economic Transformation Agenda (BETA) framework. Under this framework, the government
aims to achieve an economic turnaround and inclusive growth by increasing investments in at least five
sectors that significantly affect the economy and household welfare. These sectors include Agricultural
Transformation, Micro, Small, and Medium Enterprises (MSME), Housing and Settlement, Healthcare,
Digital Superhighway, and Creative Industry. The agenda also focuses on increasing employment, promoting equitable income distribution and social security, while expanding the tax base and boosting
foreign exchange earnings.
The National Government’s original gross budget for FY 2025/26 amounts to Kshs. 4.69 trillion, compared
to Kshs.4.37 trillion in the FY 2024/25 after Supplementary III Estimates. This comprises Kshs.744.84
billion for ministerial development expenditure, which was 16 per cent of the original gross national
budget and 29 per cent of the original gross ministerial budget of Kshs.2.55 trillion. Recurrent vote allocation amounts to Kshs.3.95 trillion, comprising the ministerial recurrent allocation of Kshs.1.80 trillion
(38 per cent of the original gross national budget) and Consolidated Fund Services (CFS) at Kshs. 2.14
trillion (46 per cent of the original gross national budget), with CFS recording the highest proportion of
the gross budget. The Education Sector received the highest budget allocation of Kshs.703.07 billion,
followed by Energy, Infrastructure and Information Communication Technology Kshs.534.63 billion, reflecting their key role in the economy.
To finance the budget, the government, through the National Treasury, targeted funds from various revenue sources, including Tax and Non-Tax Revenue, Borrowing (both external and domestic), grants, other
domestic financing, and ministerial Appropriations-in-Aid (A-IA). During the reporting period, receipts
into the Consolidated Fund amounted to Kshs. 3.21 trillion, representing 72 per cent of the original net
estimates of Kshs.4.43 trillion, compared to the Kshs.2.75 trillion (62 per cent) received in the same
period in FY 2024/25. The Tax revenue stream contributed the highest proportion of receipts, recording
54 per cent (Kshs.1.72 trillion), while proceeds from Domestic borrowing recorded the highest performance at 88 per cent (Kshs.965.87 billion).
The total exchequer issues from the Consolidated Fund to Ministries, Departments and Agencies, Consolidated Fund Services, and the County Governments amounted to Kshs.3.21 trillion, representing 72
per cent of the original net estimates of Kshs.4.43 trillion, compared to 59 per cent (Kshs.2.64 trillion)
recorded in a similar period in FY 2024/25. The exchequer issues comprised ministerial development
expenditure, Kshs.262.63 billion, representing 65 per cent of the annual net estimates, ministerial recurrent expenditure, Kshs.1.17 trillion, representing 80 per cent of the net annual estimates, Consolidated Fund Services, Kshs.1.50 trillion, representing 70 per cent of the annual net estimates and to

These are the Controller of Budget report’s own words, reproduced from its “Executive Summary” on page 23 of the document above. We have not summarised, paraphrased or interpreted it, and we add no finding of our own.