President William Ruto on Tuesday chaired a Cabinet meeting at State House, Nairobi, where ministers endorsed the 2026/27 national Budget totalling KSh4.7 trillion, signalling the government’s fiscal priorities ahead of the next financial year.
The Cabinet approved KSh495.7 billion in transfers to county governments, underscoring continued support for devolution amid growing demands on health, agriculture and local infrastructure.
To address the worsening drought in parts of the country, ministers authorised the release of KSh4.1 billion to scale up response interventions in affected regions, including food relief and water access measures.
The meeting also approved far-reaching payroll reforms aimed at resolving long-standing integrity issues that have persisted across successive administrations. The reforms are expected to ensure all statutory deductions are uniformly deducted at source, tightening controls in public service remuneration.
In the education sector, the Cabinet approved a raft of Bills designed to comprehensively align the legal framework with the Competency-Based Education and Training system. The proposed laws will address assessment, funding and placement at the tertiary level, as well as pre-service and in-service training of teachers.
The decisions come as the government seeks to stabilise public finances, respond to climate-related shocks and accelerate reforms in education and public administration.
