Budget 2026: Teachers, village elders, police win big as Mbadi reads allocations
By Aloys Michael, June 11, 2026Thousands of teachers, police recruits and village elders are set to benefit from the government’s 2026/27 budget after Treasury Cabinet Secretary John Mbadi unveiled major allocations targeting employment and public service delivery.
The Ksh4.8 trillion spending plan places significant emphasis on job creation and strengthening essential services, with education, security and grassroots administration emerging among the biggest winners.
Teachers received a major boost after the government allocated funds to absorb 20,000 intern teachers into permanent and pensionable employment.
The move is expected to ease uncertainty for many Junior Secondary School teachers who have been serving on temporary contracts.
To support the transition, Ksh4.9 billion has been set aside. The budget also provides resources for the promotion of at least 30,000 teachers and the implementation of the second phase of the 2025-2029 Collective Bargaining Agreement.
Lawmakers said the funding is intended to improve staffing levels in schools while enhancing job security for teachers across the country.
The security sector is another key beneficiary after Parliament approved additional funding to support the recruitment of 10,000 police officers. The planned hiring is expected to strengthen security operations and address personnel shortages within the National Police Service.
Village elders, who have for years pushed for formal government recognition, also secured a significant victory. Under the new budget, they will begin receiving monthly stipends of Ksh3,000.
MPs backing the allocation argued that village elders play a crucial role in community administration and conflict resolution and deserve government support for their services.
Beyond the three groups, the budget contains several measures aimed at boosting employment opportunities and supporting vulnerable households.
Young people seeking jobs abroad are expected to benefit from a newly established Labour Migration and Export Programme. The initiative has been allocated about Ksh68.9 million to facilitate labour mobility, negotiate employment agreements with foreign countries and safeguard the welfare of Kenyan workers overseas, including seafarers.
The government also retained funding for the NYOTA programme, allocating Ksh4.7 billion to support youth employment and economic empowerment initiatives. However, stakeholders who appeared before Parliament noted that many young people, especially in rural areas, still face challenges accessing the programme.
Farmers were not left behind. The allocation for fertiliser subsidies was increased to Ksh18 billion in a move aimed at reducing production costs and boosting food production. Additional funding includes Ksh2.4 billion for reforms in the sugar sector and Ksh2 billion for seed subsidies.
Education emerged as the highest-funded sector overall after receiving Ksh781.4 billion, underscoring the government’s focus on learning institutions and teacher welfare.
Social protection programmes also received substantial allocations. Elderly citizens will benefit from Ksh25 billion, while Ksh9 billion has been earmarked for orphans and Ksh1.5 billion for persons living with severe disabilities.
The budget further sets aside resources to support preparations for the 2027 General Election. Increased funding will go towards voter registration, technology upgrades and election management activities.
Despite the spending commitments, concerns remain over the country’s debt levels. The Treasury estimates a fiscal deficit of Ksh1.1 trillion, which will largely be financed through domestic borrowing.
During recent parliamentary debates, Kiharu MP Ndindi Nyoro cautioned that the country’s debt burden continued to grow, raising questions about the sustainability of public finances.
Even so, the Treasury maintains that fiscal reforms are beginning to bear fruit, projecting a primary budget surplus equivalent to 0.7 per cent of GDP as it seeks to keep the country’s finances on a stable path.