NAIROBI, Kenya, Feb 20 – The Ministry of Education (MoE) is seeking an additional Sh30 billion in the 2026/27 financial year to finance key reforms and rising recurrent costs across the sector.
In its Budget Policy Statement (BPS) 2026 presented to Parliament, the ministry has proposed an overall resource ceiling of Sh767.3 billion, up from Sh703 billion in the current fiscal year, a 9 percent increase.
“The Budget Policy Statement 2026 has proposed an overall resource ceiling of Kshs 767 Billion for the Sector in FY 2026/27. This comprises of Kshs 737 Billion in recurrent expenditure and Kshs 30 Billion development expenditure,” the ministry said.
“The proposed ceiling is a 9% increase from the 2025 baseline of Kshs 703 Billion.”
The bulk of the allocation remains recurrent spending, largely driven by personnel costs under the Teachers Service Commission (TSC), which is set to receive Sh422.9 billion 55.1 percent of the sector’s total budget.
The commission’s allocation reflects a Sh36 billion increase from the current baseline, mainly under teacher resource management.
Basic Education is projected to receive Sh134.8 billion, up Sh7 billion, largely to fund capitation for primary, junior and senior school learners under the Competency-Based Education (CBE) system.
However, concerns remain over textbook availability, senior school placement challenges and pending bills to publishers.
The Higher Education department is seeking Sh160.1 billion, a Sh16.4 billion increase, amid continued implementation challenges under the new university funding model.
Meanwhile, the Technical and Vocational Education and Training (TVET) subsector will receive Sh47 billion, up Sh4 billion.
The BPS flags persistent structural gaps, including nearly one million out-of-school children, inequitable infrastructure funding, and delays in operationalising KEMIS to safeguard learner data.
Despite the increased ceiling, lawmakers are expected to scrutinize whether the additional Sh30 billion will be sufficient to address funding shortfalls, particularly in ECDE, school feeding programmes and infrastructure at the county level.
The proposals now await parliamentary approval as the 2026/27 budget-making process enters its final stages.
