A new government spending plan is placing young Kenyans at the centre of the country’s economic direction, with fresh allocations aimed at easing unemployment and opening up opportunities in jobs, business and skills development.
Treasury CS John Mbadi, while unveiling the 2026/27 budget, said the strategy is designed to respond to the rising number of young people entering the job market every year without enough openings to absorb them. To address this gap, the government has lined up more than Sh20 billion for youth-focused programmes spread across training, enterprise support and employment creation.
The National Youth Service has been allocated Sh12.5 billion, while the National Youth Opportunities Towards Advancement (NYOTA) programme will receive Sh4.9 billion. The Youth Employment Support Programme has been set at Sh1.6 billion, and Film Development Services will get Sh1 billion.
"The NYOTA programme has also supported 51,604 youth through On-Job-Experience in 26 counties," Mbadi said.
He further noted that over 91,000 young people have already accessed start-up grants, with thousands more receiving mentorship and skills training aimed at improving their chances in business and employment.
Beyond direct youth programmes, the government has also expanded access to financing for young entrepreneurs. The Kenya Jobs and Economic Transformation initiative has been allocated Sh2.4 billion to support industrial growth and job creation in different regions.
Mbadi said 93,559 youth have benefited from loans under the Youth Enterprise Development Fund, helping many to start or expand small businesses. In addition, 91,253 young people have received start-up grants through the NYOTA programme, strengthening youth-led enterprise growth across the country.
The government has also introduced the Vijana Vuka na Afya (ViVA) initiative in Nairobi, Kisumu and Mombasa, where 72,623 youths have accessed subsidised reproductive health services. The programme is presented as part of efforts to improve wellbeing and productivity among young people.
Education remains the biggest winner in the new budget, with Sh784.5 billion set aside as the government pushes to improve access, quality and skills development for future workers.
Key allocations include Sh424.3 billion for the Teachers Service Commission, Sh56.7 billion for Higher Education Loans Board financing, Sh54.6 billion for Free Day Secondary Education and Sh30.7 billion for Junior Secondary capitation.
"Nearly 500,000 university and TVET students have benefited from scholarships and loans based on need and merit," Mbadi said.
Further allocations include Sh30.9 billion for university scholarships, Sh9.2 billion for TVET scholarships, Sh4.9 billion to convert 20,000 intern teachers into permanent and pensionable terms, and Sh8.2 billion for intern teacher support.
"The substantial allocation underscores the government's continued prioritisation of access to education, teacher recruitment," the Budget and Appropriations Committee said.
Mbadi added that reforms in education financing have widened access through the Student-Centred Funding Model, benefiting nearly half a million students in universities and technical institutions.
He also pointed to ongoing recruitment of 100,000 teachers, construction of over 23,000 classrooms and the rollout of 1,600 laboratories to support the Competency-Based Curriculum. TVET enrolment has also grown sharply, rising from 562,499 trainees in 2022 to 825,484 in 2025, as the government pushes to align training with labour market needs.
The digital sector also features prominently, with Sh8.6 billion allocated to the Digital Superhighway programme to expand connectivity, digital hubs and cybersecurity systems.
Sports, culture and tourism have been allocated Sh45.6 billion, including funding for development funds that support athletes, creatives and tourism growth.
Social protection measures include Sh8.9 billion for cash transfers to orphans and vulnerable children and Sh900 million for sanitary towels targeting school-going girls.
"Our focus is not only on navigating the immediate challenges," Mbadi said, "but also on accelerating structural transformation, creating jobs at scale, and ensuring that the benefits of growth are broadly shared among all Kenyans."
He added that youth empowerment remains a central pillar of government planning, especially through skills training, entrepreneurship support, digital access and affordable financing.
The Budget and Appropriations Committee said the youth-related allocations are meant to improve employability, encourage enterprise growth and expand access to financial support.
Beyond dedicated youth funding, the government has also proposed Sh110.2 billion for wider targeted interventions covering youth, women and constituency programmes, including regional development and support for small businesses.
The CS highlighted that government initiatives have already reached thousands of young people through loans, grants and training opportunities spread across counties.
To strengthen access to services, the government has established four Youth Empowerment Centres in Mwea, Chepalungu, Dagoretti North and Mandera South, while upgrading 25 others, bringing the total to 156 nationwide.
Mbadi called for stronger collaboration with private sector players, development partners and civil society, saying job creation cannot rely on government alone.
The Affordable Housing Programme, which has been allocated Sh50 billion, is also expected to generate employment opportunities, especially in construction and related industries.
The programme will also deliver 177,686 student accommodation units in universities, which the government says will improve living conditions while supporting jobs and local manufacturing.
"The initiative will improve living conditions for students," Mbadi said, "while creating jobs, stimulating local manufacturing and supporting MSMEs."