The National Assembly has approved the 2026 budget policy, setting broad spending limits and priorities for the 2026/2027 financial year.

Legislators approved the policy on Tuesday,March 10, 2026, during a parliamentary sitting

The approval of the policy statement means the National Assembly has agreed on how much the national government can spend and which sectors will receive priority funding before the detailed budget estimates are prepared.

According to the financial resolutions adopted by the House, the total national government budget ceiling has been set at Ksh2.878 trillion.

Out of this amount, the Executive will receive Ksh2.797 trillion, while Parliament has been allocated Ksh50.78 billion and the Judiciary Ksh30.44 billion.

These ceilings guide how ministries, departments and agencies will prepare their budgets in the coming financial year.

Counties are set to receive Ksh420 billion as the equitable share to county governments, ensuring funds flow to the devolved units for services such as health, agriculture and local infrastructure.

Equalisation fund

In addition, Ksh75.69 billion has been approved as additional allocations to counties, while the Equalisation Fund will receive Ksh9.6 billion to support historically marginalized areas with basic services like water, roads and electricity.

The approved framework also sets the fiscal direction of the country. Parliament resolved that the budget deficit will be maintained at 5.3 percent of the Gross Domestic Product (GDP), a move aimed at controlling borrowing while still financing development programmes.

Security remains one of the largest priorities. The National Police Service has been allocated Ksh143.19 billion, while the Ministry of Defence will receive Ksh241.36 billion, reflecting continued investment in national security and stability.

Education also takes a substantial share of public spending. The Teachers Service Commission has been allocated Ksh422.95 billion, largely to pay teachers’ salaries and manage teacher recruitment. Meanwhile, the State Department for Basic Education will receive Ksh134.78 billion, supporting primary and secondary education programmes.

Higher education remains another major investment area, with Ksh160.09 billion allocated to the State Department for Higher Education and Research, including funding for universities and research programmes.

Housing fund

In infrastructure development, the State Department for Roads has been allocated Ksh232.11 billion, while the Housing and Urban Development department will receive Ksh139.33 billion, largely supporting housing programmes and urban development projects.

For health services, Ksh134.3 billion has been allocated to the State Department for Medical Services and Ksh33.1 billion for Public Health and Professional Standards, funding hospitals, specialised care and preventive health services.

Beyond financial allocations, the National Assembly also adopted several policy resolutions which guide how government will manage public finances. Among them is a directive for the National Treasury to rationalize and merge non-viable state corporations by October 2026 to improve efficiency and reduce wastage of public resources.

Lawmakers also directed the Treasury to publish detailed exchequer releases for government programmes, a move intended to strengthen transparency and allow Parliament to track how public funds are spent.

Following approval, the Budget Policy Statement and accompanying resolutions will provide the fiscal foundation for the 2026/2027 national budget and guide the preparation of detailed spending plans to be presented to Parliament in the coming months.