Higher Spending, Bigger Deficit As Kenya Expands 2025/26 Budget

By Robai Ludenyi

Kenya’s supplementary budget for the 2025/26 financial year has pushed government spending higher by Sh262.9 billion, signaling tougher days ahead for taxpayers and raising fresh questions about borrowing. The additional spending, introduced through a supplementary budget by the National Treasury, increases the total government expenditure at a time when the country is already struggling with a high public debt burden.

The extra Sh262.9 billion will mainly go toward recurrent expenditure. This includes salaries, debt repayments, and other daily government operations. Recurrent spending takes the largest share of the budget, leaving less money available for development projects such as roads, hospitals, schools, and water systems. For many Kenyans, this means the government is spending more on running itself than on projects that directly improve people’s lives.

With this increase, the fiscal deficit is expected to widen further. A fiscal deficit happens when the government spends more money than it collects in revenue. To fill this gap, the government will need to borrow more, either locally or from foreign lenders. More borrowing means higher debt repayment costs in the future, which could put additional pressure on taxpayers.

The supplementary budget will be reviewed and approved by the Parliament of Kenya before full implementation. Lawmakers are expected to scrutinize the proposed allocations, especially at a time when Kenyans are already feeling the weight of high taxes and the rising cost of living.

This budget adjustment comes amid ongoing efforts by the government to stabilize the economy, manage inflation, and maintain essential public services. However, critics argue that increasing recurrent expenditure without strong revenue growth may strain the country’s finances further.

For common mwanainchi across Kenya, the big concern is will this higher spending improve services, or will it lead to more taxes and debt? As the government moves forward with the revised budget, many will be watching closely to see how the additional billions are used and whether they bring real relief to the economy or add more pressure to it.

Read Also: State House Overshoots Full-Year Recurrent Budget in Just Seven Months