Govt raises road budget to Sh217 billion as power sector sees cuts
Treasury Cabinet Secretary John Mbadi on Thursday announced Sh217.3 billion for road development and maintenance, up from Sh193.4 billion last year. He told Parliament that the plan aims to improve connectivity across Kenya and reduce logistics costs.
The government has ramped up its push for better roads, rail, and energy systems, proposing a combined investment of nearly Sh318 billion in the 2025/26 budget to unlock trade, cut transport costs, and boost power access across the country.
Treasury Cabinet Secretary John Mbadi on Thursday announced Sh217.3 billion for road development and maintenance, up from Sh193.4 billion last year. He told Parliament that the plan aims to improve connectivity across Kenya and reduce logistics costs.
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The allocation includes Sh115.6 billion for road maintenance, Sh70.8 billion for rehabilitation, and Sh30.9 billion for the construction of roads and bridges.
“This investment is meant to cut travel time, ease movement of goods and people, and expand access to markets,” Mbadi said.
In the previous financial year, the road sector had received Sh86.2 billion for construction, Sh69.5 billion for maintenance, and Sh37.7 billion for rehabilitation.
For rail, ports, and public transport infrastructure, Mbadi allocated Sh37.1 billion to rail transport, Sh600 million for the Kenya Ferry ramp in Mombasa and ferries for Lake Victoria.
He also set aside Sh300 million for airstrip construction and expansion, and another Sh300 million for the promotion of electric mobility.
Last year, the sector received Sh25.2 billion. This included Sh2.4 billion for Dongo Kundu Special Economic Zone infrastructure, Sh1 billion for the BRT project, Sh316 million for e-mobility promotion, and Sh239.4 million for the Nairobi Railway City project.
An extra Sh200 million had also been allocated for Lake Victoria ferries.
On energy, Mbadi proposed Sh62.8 billion, slightly down from Sh64 billion last year. The allocation includes Sh31.6 billion for national grid expansion, Sh16.3 billion for rural electrification, and Sh11.5 billion for geothermal power development.
Alternative energy sources were allocated Sh2.1 billion, while nuclear energy development will receive Sh700 million.
In the previous financial year, the government had allocated Sh27.8 billion for the grid, Sh24 billion for rural electrification, Sh14 billion for geothermal, Sh2.2 billion for alternative energy, and Sh920 million for nuclear energy development.
“The government has already made progress by adding 774,000 electricity connections and expanding power infrastructure across the country,” Mbadi said.
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