The government is expected to ramp up its spending on social and economic inclusion.

Some Sh70.7 billion will be spent in the 024/25 fiscal year, up from Sh66.8 billion in the previous year, according to the 2025 Economic Survey report released by KNBS yesterday.

The increase reflects the government’s financial commitment to improving economic growth through empowerment while simultaneously reducing poverty.

In FY2024/2025, the value of loans disbursed to women will increase to Sh459 million, up from Sh426.2 million in the previous year.

Youth and people with disabilities will also benefit from increased loan disbursements, rising from Sh103.5 million to Sh324 million and from Sh12.3 million to Sh17 million, respectively, in 2024/2025.

More beneficiaries

The report further projects that the total number of groups accessing funding will increase from 5,155 to 6,000 during the same period.

Similarly, the number of female beneficiaries is expected to increase from 42,673 to 48,630, and males from 31,498 to 47,370.

However, despite this commitment, the report reveals a contrasting trend, with the government slashing grants to key empowerment initiatives, including the Uwezo Fund, National Government Affirmative Action Fund (NGAAF), and Women Enterprise Fund.

Total grants to the Uwezo Fund – an initiative providing youth and women access to grants and loans – decreased from Sh239.7 million in 2023/24 to Sh140.7 million in 2024/25.

The Women Enterprise Fund suffered a major blow after the government failed to release grants to the initiative, forcing it to rely on a revolving kitty.

“This resulted in a decline in the value of loans disbursed from Sh941.9 million in 2023/24 to Sh111.8 million in 2024/25,” the report says.

Grant reduction

Meanwhile, total grants to the Youth Enterprise Development Fund (YEDF) will experience a significant reduction of nearly 75 per cent.

Grants to the YEDF “is expected to decline to Sh125 million in 2024/25 from Sh500.1 million in 2023/24”, the report says.

NGAAF, a government initiative that helps people with disabilities by promoting inclusivity and accessibility, will also suffer a major blow as the government plans to slash 50 per cent of its total disbursement to the initiative.

The grants are “expected to decline from Sh1.2 billion in 2023/24 to Sh0.6 billion in 2024/25”, the report says.

While increasing loans to women and youth is a positive step for empowerment and poverty reduction, the significant reduction in total disbursements and grants could undermine access to capital, largely impacting vulnerable groups.

Furthermore, the scaling back of grants and disbursements could increase economic inequality, particularly gender and regional disparities.