Sh12.7bn allocated to digital superhighway as Treasury trims ICT budget in 2025/26

The National Treasury has earmarked Sh12.7 billion for Kenya’s digital transformation under the digital superhighway initiative in the 2025/26 financial year.

This represents a 22 per cent reduction from the Sh16.3 billion allocated in the previous fiscal year, reflecting a shift in spending priorities as the government pursues broader fiscal consolidation.

Treasury Cabinet Secretary John Mbadi made the announcement on Thursday while delivering the national budget estimates in Parliament.

He affirmed the government’s continued commitment to digital infrastructure and innovation, despite the trimmed allocation.

The digital superhighway, a flagship pillar under the Bottom-Up Economic Transformation Agenda (BETA), aims to foster inclusive economic growth by expanding digital access, promoting e-government services, and driving youth employment across all counties.

Since the programme’s launch in 2024, 285 out of 1,450 targeted ICT hubs, one in each ward, have been completed.

These hubs are designed to offer public internet, digital literacy training, and access to online government services, and the government targets full rollout by 2028.

The 2025/26 budget allocates Sh3.1 billion to the Konza Data Centre and Smart City project—down from Sh5.2 billion in 2024/25—marking the third consecutive year the strategic innovation hub has received government funding.

Digital enterprise

In contrast to the general cuts, the government has increased funding for the Kenya Digital Economy Acceleration project to Sh3.7 billion, up from Sh2.8 billion in the FY 2024/2025.

Reflecting growing investment in digital enterprise, innovation, and smart technologies.

The national e-procurement platform (e-GP) is scheduled to go fully live in July 2025 and has been allocated Sh 700 million to support system-wide adoption and operational readiness across ministries and public agencies.

Also in the ICT budget, the government has allocated Sh 2.3 billion for the continued construction of the Kenya Advanced Institute of Science and Technology (KAIST) in Konza, and Sh 333 million for government shared services, significantly down from Sh 1.1 billion last year.

Maintenance and rehabilitation of the last-mile county connectivity network has been allocated Sh 750 million, compared to Sh 2.8 billion in FY 2024/25, amid a tightening fiscal framework.

Despite the leaner ICT budget, CS Mbadi reiterated that strategic digital programmes will maintain momentum through targeted investments, public-private partnerships, and efficient project execution.

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• National Treasury
• Bottom-Up Economic Transformation Agenda
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• ICT
• digital superhighway
• Sh12.7bn allocated to digital superhighway as Treasury trims ICT budget in 2025/26
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The total national budget for the 2025/2026 fiscal year, running from July 1, 2025, to June 30, 2026, stands at Sh4.23 trillion, an increase from Sh3.99 trillion.