Hard truths. Bold Insights. Real talk.
According to the budget papers presented to the National Assembly, the money was disbursed through the State Department for Co-operative Development and Management on January 2 as capital grants.
State House leads in additional allocations, receiving Sh8.4 billion after its recurrent budget was exhausted by the seventh month of the financial year.
Currently, Kenya dedicates Sh12 out of every Sh25 collected from the Road Maintenance Levy Fund (RMLF) to settle pending obligations in the roads sector. Plans are also underway to allocate 90 percent of the Railway Development Levy to extend the SGR from Naivasha.
Appearing before the committee on March 2, 2026, Mbadi explained that the next phase of transformation will focus on scaling up investments in people, shifting the economy from a net importer to a net exporter,
Treasury Cabinet Secretary John Mbadi announced that the draft regulations, alongside the explanatory memorandum and regulatory impact statement, have been published on the Treasury’s website to allow members of the public to review and give feedback.
At present, counties cannot obtain loans directly unless the National Treasury guarantees the borrowing. The Public Finance Management Act requires the national government to oversee and guarantee borrowing for state bodies, including counties, to safeguard public finances.
Governors argue that the additional funding is essential to meet growing devolved responsibilities, accommodate Universal Health Coverage workers, implement salary reviews for county staff, and support the transfer of functions from the national government.
In the new proposals, RBA seeks to restore a system where public agencies must show proof of full compliance before they can access statutory disbursements.
According to the latest Treasury figures, by the end of January 2026, State House had spent Sh10.4 billion, surpassing its full-year recurrent budget of Sh7.7 billion by Sh2.7 billion. This overspend represents a 35 percent breach of the annual ceiling, with five months remaining before the financial year ends on June 30.
Senate Clerk Jeremiah Nyegenye said submissions can be hand-delivered to his office or sent via email to the Senate Finance Committee. “Your taxes, your voice.
The National Treasury’s final Budget Policy Statement for 2026, presented in the National Assembly, shows that the government will borrow Sh1.170 trillion for the year starting in July.
At the centre of the agenda are documents from the National Treasury, including the 2026 Budget Policy Statement, the Debt Management Strategy and Sessional Paper No. 3 of 2025, which proposes the sale of part of the government’s stake in Safaricom.