Kenya’s 2024/25 Budget: Sectoral Allocations and Policy Priorities


 

The FY 2024/25 Appropriation Bill reflects Kenya’s ongoing efforts to align fiscal policy with the regime’s Bottom-Up Economic Transformation Agenda (BETA) and the Fourth Medium-Term Plan (MTP IV) of Vision 2030. The distribution of resources demonstrates a deliberate prioritization of education, healthcare, infrastructure, social welfare, and, importantly, devolution as the key ambitions of Kenya Vision 2030.

                     Below is a sectoral breakdown of the allocations:

1. Education – Ksh 718.8 Billion 

As the largest beneficiary of the budget, the education sector underscores the government’s recognition of human capital development as a driver of long-term growth. Funds will go toward:

·      Expansion of the Competency-Based Curriculum (CBC), hiring more teachers, and building more class rooms. 

·        Recruitment and training of teachers.

·        Infrastructure upgrades in schools and universities.

·        Increased funding for Technical and Vocational Education and Training (TVET).

·        Enhancement of bursary and scholarship programs.

 

In addition, Ksh 18 billion has been allocated to the Teachers Service Commission (TSC) to address insurance shortfalls, promotions, and staff emoluments.

2. Environment, Water, and Natural Resources – Ksh 134.2 Billion

 This allocation supports Kenya’s climate and sustainability agenda, with funding directed to:

·       Expansion of the national tree-planting initiative (target: 15 billion trees by 2032).

·       Climate resilience programs to mitigate droughts and floods.

·       Investment in clean energy and waste recycling projects.

·       Conservation of wildlife and marine ecosystems.

·       Strengthening carbon trading as a revenue stream.

 3. Health – Ksh 204.9 Billion

The health sector budget reflects a continued commitment to universal health coverage (UHC) through:

·       Expansion of Taifa Care and the Social Health Authority (formerly NHIF).

·       Upgrading county healthcare facilities.

·       Strengthening maternal and child health services.

·       Investment in digital health infrastructure.

·       Support for local pharmaceutical and vaccine production.

 

Moreover, allocations include Ksh 1.5 billion for recapitalizing KEMSA and KSh 3 billion for the Primary Healthcare Fund.

4. Infrastructure, Transport, and Energy – KSh 554.8 Billion

This sector remains central to economic transformation, with investments in:

·       1,098 km of new roads and 62 bridges.

·       Completion of Phase 1 of the Nairobi Railway City project.

·       Expansion of the electricity grid (target: 1.44 million new connections).

·       Development of renewable energy projects (solar and wind).

·       Rollout of 38,871 km of high-speed fibre optic cable.

 5. National Security – Ksh 249.3 billion

 Priorities include:

·       Strengthening the National Police Service. 

·       Enhancing the capacity of the National Intelligence Service. 

·       Improvements in the Prisons Department.

·       Leasing of police vehicles and investment in forensic labs.

 6. Affordable Housing and Urban Development – KSh 90 Billion

 Aimed at addressing Kenya’s housing deficit, this allocation will fund:

·       Construction of 217,654 affordable housing units. 

·       Slum upgrading in major cities. 

·       Development of modern market infrastructure. 

·       Expansion of mortgage access to low-income households. 

·       Waste management and sanitation improvements in informal settlements. 

7. Digital Economy and ICT – KSh 140.8 Billion

 Reflecting the growing role of technology in governance and business, funds will support:

·       Public Wi-Fi expansion in both rural and urban areas. 

·       Digitization of government services.

·       Development of fintech, e-commerce, and startups. 

·       Cybersecurity investments.

·       ICT training and incubation programs for youth.

 

     8. Social Protection and Welfare – KSh 78.7 Billion

 This allocation strengthens Kenya’s social safety nets by funding:

  • Cash transfers to the elderly and vulnerable. 
  • Youth and women empowerment programs. 
  • Disability inclusion projects 
  • Investments in sports, arts, and culture. 
  • Support for orphans and vulnerable children.

9. Agriculture, Rural, and Urban Development – Ksh 86.1 Billion

 Agriculture remains central to food security and rural development, with investments in:

·       Fertilizer subsidies.

·       Irrigation projects and livestock restocking.

·       Establishment of agro-industrial parks.

·       Broader food security initiatives.

10. County Governments – KSh 442.7 Billion 

Counties will receive funding aimed at:

·       Local development projects.

·       Enhancing health, agriculture, and infrastructure services.

·       Supporting county-level industrialization.

·       Disaster preparedness and response.

 

Kenya’s 2024/25 budget underscores a clear policy direction: strengthening universal healthcare, dignifying housing, and responding to the increasing need for investment in education. By channeling resources into both growth-oriented and welfare-driven sectors, the government seeks to balance economic expansion with social inclusivity. In my view, as the Medium-Term Plan progresses and Vision 2030 approaches its final phase in less than five years, there is a critical need to curb public debt, bridge fiscal deficits, and align Kenya’s technological ambitions with global trends


Location: Nairobi, Kenya

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