On April 29, 2025, the Draft Finance Bill, 2025, was tabled before the National Assembly. The Speaker, Moses Wetang’ula, referred the Bill to the Finance and National Planning Committee for review and further action in accordance with the National Assembly’s Standing Orders. Consequently, the government also released a programme-based budget that outlines its key priorities and initiatives during the fiscal year 2025/26 and the medium term across the respective state departments. It provides a concise overview of significant regulatory, policy, and oversight activities that may impact various sectors and stakeholders operating within Kenya.

The government is prioritising the implementation of the Bottom-Up Economic Transformation Agenda (BETA) plan. At the core of economic management, the National Treasury is prioritising macroeconomic stability. Its objectives include maintaining inflation at 5% (±2.5%), preserving foreign reserves sufficient for 6.1 months of import cover, and reducing the fiscal deficit to 2.8% of GDP. The Treasury also plans to raise revenue collection from 14.0% of GDP in FY 2023/24 to 17.5% in the medium term. Other priorities include issuing sovereign and green bonds, mobilising external resources to cover 55% of the fiscal gap, and implementing structural reforms such as operationalising the Treasury Single Account (TSA) and transitioning to complete accrual accounting for public entities.

The  Office of the Deputy President, in particular, is taking a keen interest in facilitating government strategic initiatives in the agriculture sector along the BETA value chains, including coffee and tea, among others. This is to address the sharp decline in tea and coffee exports as seen in the latest Kenya National Bureau of Statistics (KNBS) Economic Indicators Report for December 2024. These two commodities are among Kenya’s top foreign exchange earners, contributing significantly to the country’s revenue. The decline in their export volumes also marks a decrease in earnings, which in turn affects overall economic stability.

The Department of Basic Education will focus on implementing the Competency-Based Curriculum and assessment reforms, integrating marginalised populations, integrating ICT into teaching and learning, and ensuring sustainable education funding, among other initiatives. This is especially true in primary and secondary education. However, recent developments cast a shadow of doubt on how the government plans to bolster the education sector. The latest crisis development plaguing the sector is a Ksh 62 billion budget shortfall.

This will see thousands of candidates face an uncertain future after the Treasury eliminated the entire budget for examination registration and invigilation. Consequently, parents would be forced to pay to have learners sit national examinations. While this may be manageable for pupils attending private schools, it casts a shadow of uncertainty for those relying on the free education programme. 

Kenya’s healthcare system is facing a crisis, marked by shortages of essential medicines and supplies, as well as delayed payments to hospitals. The crisis is attributed to funding gaps, delayed government reimbursements, and the government’s failure to meet its co-financing obligations for essential programs. These systemic issues led to hundreds of medical, dental, and pharmacy interns descending on the Ministry of Health headquarters in 2024, demanding the immediate posting of interns and the resignation of the then Health Cabinet Secretary, Susan Nakhumicha.

In the Sectoral Highlights released by the government, the State Department for Medical Services will prioritise universal, seamless health insurance through the integration of funds, including the Emergency, Chronic and Critical Illness Fund and the Social Health Insurance Fund (SHIF). Another objective is the implementation of strategic HR management, focusing on the recruitment and retention of healthcare personnel. In its objectives, the state department will prioritise health financing, focusing on improved resource allocation and the retention of facility-collected funds for operational enhancements. We hope that this will turn around the staffing and financial crisis plaguing the sector.

As the country awaits the next steps on the Finance Bill, 2025, all eyes are on the government. This is especially in light of last year’s nationwide protests that tragically resulted in the loss of many lives. While the administration continues to emphasise the need to “live within our means,” its inflated allocation to salaries and recurrent expenditure at the cost of development raises eyebrows.

The rising strain on essential sectors, such as health and education, coupled with limited opportunities for many Kenyans, underscores a pressing need for the government to realign its budgetary priorities. Beyond rhetoric, what the country urgently needs is a people-centred approach that truly delivers on the promise of economic transformation.