Education gets largest share as Treasury allocates Sh784.5 billion in 2026/27 budget
Mbadi noted that the allocation also marks a notable rise from the Sh526 billion allocated before President William Ruto’s administration took office.
Students returning to schools after holidays. Elimu Bora is urging the government to reinstate Edu-Afya student health insurance, arguing that coverage gaps since its discontinuation have delayed emergency care and contributed to.
The Treasury has allocated Sh784.5 billion to the education sector in the 2026/27 budget, the largest share of the government’s Sh4.8 trillion budget.
Appearing before Parliament on Thursday, Treasury Cabinet Secretary John Mbadi said the funding will support learning, training, research, teacher recruitment and infrastructure expansion as the government seeks to strengthen human capital and improve education outcomes across all levels.
He said the allocation accounts for a larger share of the ministerial budget compared to previous years, rising from 24.5 per cent to 26.5 per cent. According to Mbadi, this growth demonstrates increased prioritisation of the sector, dismissing earlier claims that the sector was being underfunded.
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He noted that the allocation also marks a notable rise from the Sh526 billion allocated before President William Ruto’s administration took office, reflecting an increase of about 49 per cent.
“It is not correct that this government, this administration, is defunding education. In fact, we are funding it more,” Mbadi said.
The Teachers Service Commission (TSC) has received the largest share of the proposed budget, taking up Sh424 billion for payment of teachers and staffing needs across the country. Mbadi said the allocation has risen from about Sh290 billion in 2022 to Sh424 billion.
Sh4.9 billion has been set aside to convert 20,000 intern teachers into permanent and pensionable terms from January 2027. Another 24,000 intern teachers will be absorbed in July 2027 under a Sh8.2 billion allocation aimed at addressing staffing gaps and improving learning outcomes.
“This government, by the time we reach next year, will have employed 116,000, if you put it in terms of averages, over 20,000 teachers per year. There is no other government that has ever employed more than 10,000 teachers per year. This government is employing on average 20,000 teachers per year,” Mbadi said.
Basic education has been allocated Sh136.6 billion, up from Sh107 billion in 2022, while higher education has been allocated Sh163.9 billion, compared to Sh105 billion in 2022.
Sh7 billion has been set aside for free primary education, Sh54.6 billion for free day secondary education, and Sh30.7 billion for junior secondary capitation. This brings total capitation support to Sh85.3 billion, up from Sh62.4 billion in 2022.
The science, innovation and research sector has been allocated Sh1.3 billion, while the technical and vocational education and training has been allocated Sh58.5 billion.
Mbadi also proposed Sh9.9 billion for the national examinations administration and Sh1.5 billion to clear arrears owed to teachers who marked examinations. School feeding has been allocated Sh1.53 billion, which he said has grown from Sh2.2 billion in 2022 to Sh3 billion.
Infrastructure and quality improvement programmes have also been funded, including Sh4.1 billion for primary and secondary school infrastructure, Sh2.1 billion for the construction and equipping of diversion centres, Sh7.1 billion for the Kenya Primary Education Equity and Learning Programme, and Sh4.7 billion for the Kenya Secondary Education Quality Improvement Programme.
Higher education has also received significant support, with Sh56.3 billion allocated to the Higher Education Loans Board (HELB) for student loans, up from Sh15.39 billion in 2022. An additional Sh30.9 billion has been set aside for university scholarships, Sh9.2 billion for TVET scholarships, Sh6.7 billion for CBA arrears in universities, and Sh5.9 billion for ongoing university projects.
Mbadi said Kenya’s development depends on strong human capital, noting that the government will continue investing in education quality, equity and skills development.
“Kenya’s future depends on developing strong human capital, and to this end, we will continue to strengthen quality learning, training, and research, promote equity and inclusivity, scale up investment in education, fortify the system against emerging technological and labour market shifts, as well as fortify education to industry linkages, thus ensuring skills match demand,” he said.