First key thing is the adjustments on the expenditure side:
· The projected expenditure for 2025/26 has been slashed by some Kes 66.2 billion to Kes 4.263 trillion
· Interesting thing to note is that even with this slash in aggregate expenditure, projection for 2025/26 recurrent spending has been increased by Kes 19.4 billion to Kes 3.096 trillion
· Projection for 2025/26 development spending has been reduced by a tidy Kes 79.6 billion to just Kes 725.1 billion
· Transfer to counties has been cut by Kes 6.0 billion to Kes 436.7 billion
· The expenditure cut in the 2025/26 numbers are a lot leaner than what National Treasury CS, John Mbadi, told us would be undertaken just a fortnight ago (i.e, Mbadi told us to anticipate a Kes 153.0 billion cut, what we have is a Kes 66.2 billion cut)
Second thing that stands out is the adjustments on the revenue side:
· The projection for 2025/26 aggregate revenue has been cut by Kes 130.8 billion to Kes 3.386 trillion
· The tabled document shows that 2025/26 Ordinary Revenue projection has been cut by Kes 183.8 billion to Kes 2.835 trillion
· Interesting to note that the tabled document shows that the projection for 2025/26 Appropriation-in-Aid has been revised upward by Kes 52.9 billion to Kes 550.7 billion
· This tells us that the Ordinary Revenue forecast for 2025/26 has been revised downward by a slightly larger margin than what CS Mbadi indicated a fortnight ago (i.e, Mbadi indicated there was a Kes 180.8 billion cut, what we are seeing is a Kes 183.8 billion cut)
Third thing to take note of is adjustments to the deficit & borrowing side:
· 2025/26's projected deficit has been widened by Kes 71.6 billion to Kes 831.0 billion
· Domestic borrowing target for 2025/26 has been revised upward by a whole Kes 138.4 billion to Kes 684.2 billion (are we still hoping yields in the fixed income market will continue trending downward?)
· External borrowing target for 2025/26 has been revised downward by Kes 66.9 billion to Kes 146.8 billion. Isn't this an interesting development?
Fourth thing to take note of is the adjustments in budgets across the arms of government:
· The Executive budget for 2025/26 has been cut by Kes 187.63 billion to Kes 2.494 trillion
· The Judiciary's budget for 2025/26 has been increased by Kes 120.0 million to Kes 25.749 billion
· Parliament's budget for 2025/26 remains unchanged from the Draft document
Fifth thing to take note of is adjustments at the sector level by way of budget cuts (tabled BPS version versus draft BPS version)
· Environment takes the largest cut at 22.7% (Kes 30.4 billion cut) to Kes 103.76 billion
· Agriculture takes the second largest cut at 9.81% (Kes 8.45 billion cut) to Kes 77.67 billion
· National Security takes the third largest cut at 7.88% (Kes 22.0 billion cut) to Kes 257.02 billion
· Health is set for a marginal cut at 0.24% (Kes 500.0 million cut) to Kes 204.49 billion
Sixth thing to take note of is adjustments at the sector level by way of but increase:
· Energy, Infrastructure & ICT is set for the largest increase at 13.58% (Kes 60.32 billion increase) to Kes 504.6 billion
· Education is set for a modest increase at 0.71% (Kes 5.13 billion increase) to Kes 723.89 billion
· Social protection is set for a modest increase at 0.16% (Kes 122.0 million increase) to Kes 78.79 billion
Ends!
The 2025 Budget Policy Statement has been tabled in the National Assembly.
If you want to know what was in the draft document that came from the National Treasury, see the quoted 🧵 below.
Now what are we seeing in the new document tabled in the National Assembly?
A 🧵First key thing is the adjustments on the expenditure side:
· The projected expenditure for 2025/26 has been slashed by some Kes 66.2 billion to Kes 4.263 trillion
· Interesting thing to note is that even with this slash in aggregate expenditure, projection for 2025/26 recurrent spending has been increased by Kes 19.4 billion to Kes 3.096 trillion
· Projection for 2025/26 development spending has been reduced by a tidy Kes 79.6 billion to just Kes 725.1 billion
· Transfer to counties has been cut by Kes 6.0 billion to Kes 436.7 billion
· The expenditure cut in the 2025/26 numbers are a lot leaner than what National Treasury CS, John Mbadi, told us would be undertaken just a fortnight ago (i.e, Mbadi told us to anticipate a Kes 153.0 billion cut, what we have is a Kes 66.2 billion cut)Second thing that stands out is the adjustments on the revenue side:
· The projection for 2025/26 aggregate revenue has been cut by Kes 130.8 billion to Kes 3.386 trillion
· The tabled document shows that 2025/26 Ordinary Revenue projection has been cut by Kes 183.8 billion to Kes 2.835 trillion
· Interesting to note that the tabled document shows that the projection for 2025/26 Appropriation-in-Aid has been revised upward by Kes 52.9 billion to Kes 550.7 billion
· This tells us that the Ordinary Revenue forecast for 2025/26 has been revised downward by a slightly larger margin than what CS Mbadi indicated a fortnight ago (i.e, Mbadi indicated there was a Kes 180.8 billion cut, what we are seeing is a Kes 183.8 billion cut)Third thing to take note of is adjustments to the deficit & borrowing side:
· 2025/26's projected deficit has been widened by Kes 71.6 billion to Kes 831.0 billion
· Domestic borrowing target for 2025/26 has been revised upward by a whole Kes 138.4 billion to Kes 684.2 billion (are we still hoping yields in the fixed income market will continue trending downward?)
· External borrowing target for 2025/26 has been revised downward by Kes 66.9 billion to Kes 146.8 billion. Isn't this an interesting development?Fourth thing to take note of is the adjustments in budgets across the arms of government:
· The Executive budget for 2025/26 has been cut by Kes 187.63 billion to Kes 2.494 trillion
· The Judiciary's budget for 2025/26 has been increased by Kes 120.0 million to Kes 25.749 billion
· Parliament's budget for 2025/26 remains unchanged from the Draft documentFifth thing to take note of is adjustments at the sector level by way of budget cuts (tabled BPS version versus draft BPS version)
· Environment takes the largest cut at 22.7% (Kes 30.4 billion cut) to Kes 103.76 billion
· Agriculture takes the second largest cut at 9.81% (Kes 8.45 billion cut) to Kes 77.67 billion
· National Security takes the third largest cut at 7.88% (Kes 22.0 billion cut) to Kes 257.02 billion
· Health is set for a marginal cut at 0.24% (Kes 500.0 million cut) to Kes 204.49 billionSixth thing to take note of is adjustments at the sector level by way of but increase:
· Energy, Infrastructure & ICT is set for the largest increase at 13.58% (Kes 60.32 billion increase) to Kes 504.6 billion
· Education is set for a modest increase at 0.71% (Kes 5.13 billion increase) to Kes 723.89 billion
· Social protection is set for a modest increase at 0.16% (Kes 122.0 million increase) to Kes 78.79 billion
Ends!
yes
The 2025 Budget Policy Statement has been tabled in the National Assembly.
If you want to know what was in the draft document that came from the National Treasury, see the quoted 🧵 below.
Now what are we seeing in the new document tabled in the National Assembly?
A 🧵 ... First key thing is the adjustments on the expenditure side:
· The projected expenditure for 2025/26 has been slashed by some Kes 66.2 billion to Kes 4.263 trillion
· Interesting thing to note is that even with this slash in aggregate expenditure, projection for 2025/26 recurrent spending has been increased by Kes 19.4 billion to Kes 3.096 trillion
· Projection for 2025/26 development spending has been reduced by a tidy Kes 79.6 billion to just Kes 725.1 billion
· Transfer to counties has been cut by Kes 6.0 billion to Kes 436.7 billion
· The expenditure cut in the 2025/26 numbers are a lot leaner than what National Treasury CS, John Mbadi, told us would be undertaken just a fortnight ago (i.e, Mbadi told us to anticipate a Kes 153.0 billion cut, what we have is a Kes 66.2 billion cut) ... Second thing that stands out is the adjustments on the revenue side:
· The projection for 2025/26 aggregate revenue has been cut by Kes 130.8 billion to Kes 3.386 trillion
· The tabled document shows that 2025/26 Ordinary Revenue projection has been cut by Kes 183.8 billion to Kes 2.835 trillion
· Interesting to note that the tabled document shows that the projection for 2025/26 Appropriation-in-Aid has been revised upward by Kes 52.9 billion to Kes 550.7 billion
· This tells us that the Ordinary Revenue forecast for 2025/26 has been revised downward by a slightly larger margin than what CS Mbadi indicated a fortnight ago (i.e, Mbadi indicated there was a Kes 180.8 billion cut, what we are seeing is a Kes 183.8 billion cut) ... Third thing to take note of is adjustments to the deficit & borrowing side:
· 2025/26's projected deficit has been widened by Kes 71.6 billion to Kes 831.0 billion
· Domestic borrowing target for 2025/26 has been revised upward by a whole Kes 138.4 billion to Kes 684.2 billion (are we still hoping yields in the fixed income market will continue trending downward?)
· External borrowing target for 2025/26 has been revised downward by Kes 66.9 billion to Kes 146.8 billion. Isn't this an interesting development? ... Fourth thing to take note of is the adjustments in budgets across the arms of government:
· The Executive budget for 2025/26 has been cut by Kes 187.63 billion to Kes 2.494 trillion
· The Judiciary's budget for 2025/26 has been increased by Kes 120.0 million to Kes 25.749 billion
· Parliament's budget for 2025/26 remains unchanged from the Draft document ... Fifth thing to take note of is adjustments at the sector level by way of budget cuts (tabled BPS version versus draft BPS version)
· Environment takes the largest cut at 22.7% (Kes 30.4 billion cut) to Kes 103.76 billion
· Agriculture takes the second largest cut at 9.81% (Kes 8.45 billion cut) to Kes 77.67 billion
· National Security takes the third largest cut at 7.88% (Kes 22.0 billion cut) to Kes 257.02 billion
· Health is set for a marginal cut at 0.24% (Kes 500.0 million cut) to Kes 204.49 billion ... Sixth thing to take note of is adjustments at the sector level by way of but increase:
· Energy, Infrastructure & ICT is set for the largest increase at 13.58% (Kes 60.32 billion increase) to Kes 504.6 billion
· Education is set for a modest increase at 0.71% (Kes 5.13 billion increase) to Kes 723.89 billion
· Social protection is set for a modest increase at 0.16% (Kes 122.0 million increase) to Kes 78.79 billion
Ends!
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