The State Department for Lands and Physical Planning is seeking Parliament’s approval for a higher spending ceiling in the 2026/2027 financial year, setting up a fresh budget standoff after tabling estimates that go beyond the limits set in the Budget Policy Statement.
Lands Principal Secretary Nixon Korir told the National Assembly Lands Committee on Tuesday that the revised figures reflect rising development demands and ongoing land-related programmes.
Korir detailed the earlier allocation approved under the Budget Policy Statement, saying:
“In the approved Budget Policy Statement 2026, the State Department of Lands and Physical Planning was allocated a total of Sh10,949,900,000,” Korir said.
He then outlined the revised proposal now before Parliament:
“In the proposed estimates for the financial year 2026/2027, which we have tabled for your consideration, we have proposed for a total budget of Sh 15,877,500,000, which deviates from the Budget policy statement allocations by Sh 4,927,600,000 as shown in the following table,” Korir said.
Korir explained that the increase is largely tied to expanded development programmes, especially land settlement initiatives and infrastructure-related commitments.
At the same time, he told lawmakers that recurrent expenditure has been reduced compared to earlier projections:
“Under the approved 2026 Budget Policy Statement, the State Department was allocated Sh. 6,109,900,000 for recurrent expenditure. However, the proposed budget estimates for FY 2026/2027 reflect a revised allocation of Sh. 5,737,500,000.”
He further attributed the reduction to changes in revenue inflows:
“This represents a net decrease of Sh 372,400,000, primarily driven by a projected decline in Appropriations-in -Aid (AIA).”
Development spending, however, has recorded a sharp rise and now forms the largest share of the proposed budget. Korir stated:
“Under the approved budget policy statement 2026, the State Department was allocated Sh 4,840,000,000 for Development expenditure; however, under the proposed budget estimates for the FY 2026/2027, the revised allocation for development expenditure is Sh. 10,140,000,000.” Korir explained.
He added that the surge is driven by specific programmes:
“This represents a net increase of Sh5,300,000,000, primarily due to the inclusion of Phase II of the World Bank-funded project (Housing Finance, Lands and Sustainable Investments Project), which has been allocated Sh1,000,000,000, and an additional allocation to cater for the settlement of Squatters of Sh5,000,000,000.”
PS Korir maintained that the additional funding is necessary to accelerate land reforms, expand settlement schemes, and address long-standing land challenges across the country.
The Lands Committee is expected to scrutinise the proposal, with members focusing on the justification for exceeding the budget ceiling and whether the department can effectively manage the expanded development programme.
Korir warned that failure to approve the revised estimates could slow down key land projects and reform programmes currently underway.