Kenya’s education system is set for its biggest budget push in years after the Treasury proposed Sh784.5 billion for the sector in the 2026/27 financial year, placing learning and training at the centre of the Sh4.8 trillion national spending plan.
Appearing before Parliament on Thursday, Treasury Cabinet Secretary John Mbadi said the funds will go into supporting teachers, schools, universities, research work and infrastructure expansion as the government seeks to strengthen skills development and improve learning standards across the country.
Mbadi said the education allocation now takes 26.5 per cent of the ministerial budget, up from 24.5 per cent in earlier years, rejecting claims that the sector has been receiving less support.
“It is not correct that this government, this administration, is defunding education. In fact, we are funding it more,” Mbadi said.
He added that the current funding level is far higher compared to the Sh526 billion allocated before the administration of President William Ruto, reflecting an increase of about 49 per cent.
The Teachers Service Commission has taken the largest portion of the sector allocation, receiving Sh424 billion for salaries, recruitment and staffing needs. This is an increase from about Sh290 billion in 2022.
The Treasury has also set aside Sh4.9 billion to convert 20,000 intern teachers into permanent and pensionable terms starting January 2027. Another 24,000 interns will be absorbed in July 2027 under a Sh8.2 billion plan aimed at closing staffing gaps in schools.
“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 previously.
Capitation funding has also been expanded, with Sh7 billion set aside for free primary education, Sh54.6 billion for free day secondary education, and Sh30.7 billion for junior secondary education. This brings total capitation support to Sh85.3 billion, up from Sh62.4 billion in 2022.
The science, innovation and research sector has received Sh1.3 billion, while technical and vocational education and training has been allocated Sh58.5 billion.
Other allocations include Sh9.9 billion for national examinations administration and Sh1.5 billion to clear arrears owed to teachers who marked exams. School feeding programmes have been allocated Sh1.53 billion, which has increased from Sh2.2 billion in 2022 to Sh3 billion.
Key infrastructure and quality improvement programmes have also been funded, including Sh4.1 billion for primary and secondary school infrastructure, Sh2.1 billion for 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 support has also been strengthened, with Sh56.3 billion allocated to the Higher Education Loans Board 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 long-term growth depends on building strong human capital and aligning education with labour market needs.
“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.