Treasury flags 2025 budget as HELB, police medical cover miss out on funding

The National Treasury has flagged critical areas that remain unbudgeted for in this year’s budget, citing financial constraints and revenue projections that continue to fall below target.

Treasury Principal Secretary Dr. Chris Kiptoo says these areas are essential and is urging the National Assembly’s Budget Committee to revisit the votes before submitting its report next week.

The 2025–2026 budget estimates is currently before the National Assembly’s Budget Committee. Kiptoo, in his presentation on Thursday, highlighted unfunded areas, including police medical cover worth Ksh.17.6 billion and police group life cover amounting to Ksh.6 billion — both missing from the current budget estimates.

HELB scholarships require Ksh.34 billion for university education, along with Ksh.11.3 billion for TVET scholarships — both missing from the budget estimates.

Although the Education Committee claims to have reinstated exam funding, Treasury presentations show that Ksh.11 billion is still needed for exams and invigilation costs. Free day secondary school, free day junior school, and the school feeding programme are also affected.

The health sector needs at least Ksh.20 billion more for the Primary Healthcare Fund and the Chronic and Critical Illness Fund.

This year’s budget estimates have not factored in the fertiliser subsidy programme, which requires Ksh.10 billion, nor the seed subsidy, which needs Ksh.1.7 billion.

Treasury informed the MP Sam Atandi-led Budget Committee that Ksh.9.2 billion required for the preparation of the 2027 General Election has also not been allocated.

“Economic indicators have rebounded. Inflation has also declined," said Kiptoo.

Alego Usonga MP Atandi added, “We want to revise the three votes, including the Office of the Auditor General.”

MPs are set to retreat for report writing ahead of the tabling of the report.

“In your assessment, are the taxes of last year worth it based on what they generated? Was there revenue in the 2023 Finance Bill?” Kiharu MP Ndindi Nyoro posed.

In his response, Kiptoo said: “We need to have a conversation on zero-rating because the industries can push to consumers.”