President William Ruto on Wednesday chaired a Cabinet meeting at State House, Nairobi, where ministers endorsed the 2026/27 national budget estimates totalling KSh4.7 trillion, setting the stage for the next financial year’s spending priorities.
According to a statement from State House, the approved budget includes KSh495.7 billion in transfers to county governments, reaffirming the administration’s commitment to devolution and the equitable distribution of resources across the country.
The Cabinet also addressed the worsening drought situation affecting parts of Kenya, authorising the immediate release of KSh4.1 billion to scale up emergency response interventions in the hardest-hit regions. The funds are expected to support food relief, water provision, livestock protection, and other mitigation measures aimed at cushioning vulnerable communities.
In a move aimed at strengthening public sector accountability, the Cabinet approved sweeping payroll reforms designed to address long-standing integrity concerns. The reforms seek to streamline salary administration and ensure that statutory deductions are uniformly deducted at source, closing loopholes that have persisted under previous administrations.
Additionally, ministers approved a series of Bills intended to align Kenya’s legal framework with the Competency-Based Education and Training (CBET) system. The proposed laws will guide assessment standards, funding mechanisms, tertiary placement processes, and both pre-service and in-service teacher training, as the country continues to implement sweeping education reforms.
The decisions signal a focus on fiscal planning, drought resilience, governance reforms, and education transformation as the government prepares for the 2026/27 financial year.
