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On 12 June 2025, The National Treasury CS, Hon. John Mbadi, presented Kenya’s 2025/26 national budget to Parliament—his first since assuming office. The Ksh 4.2 trillion budget, the largest in the country’s history, outlines the government’s fiscal priorities amid rising debt, economic pressures, and public demand for relief.

In line with our commitment to keeping you informed, we have summarized the key highlights of the Budget Statement, including fiscal priorities, proposed tax amendments, sector allocations, and insights into the broader economic outlook.

We hope this brief offers clarity on the shifting policy landscape and the opportunities ahead for individuals and businesses alike.

Here are the key takeaways:

Tax Reforms: The Finance Bill 2025 proposes full tax exemption on all gratuity payments, both public and private, and introduces mortgage interest relief for individuals constructing their own homes.
Revenue Targets: The government aims to raise Ksh 2.7 trillion through taxes, with the remainder funded via levies, grants, and borrowing—Ksh 592 billion domestically and Ksh 284 billion externally.
Sector Allocations: Education receives the largest share at Ksh 701 billion, followed by infrastructure and ICT at Ksh 500.7 billion. Health, agriculture, and youth employment also feature prominently.
Support for Businesses: Accelerated tax relief is proposed for operational tools and industrial items, and incentives are being introduced for companies hiring youth.
Public Sentiment: While the budget includes relief measures, concerns remain over the rising cost of living and the country’s growing debt burden.

To access our analysis, click on the button below.

We will continue monitoring the Finance Bill’s progress and its implications for your business and personal finances. Should you have any questions or need tailored advice, feel free to reach out.

Thank you for your continued partnership. We look forward to supporting you through this fiscal year and beyond.

Analysis of The Kenya 2025/2026 Budget

Analysis of The Kenya 2025/2026 Budget

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