President William Ruto has signed into law the Supplementary Appropriation Bill (National Assembly Bill No. 8 of 2025), paving the way for additional funding to education, health, security, infrastructure, and economic development.

The newly enacted law, sponsored by Deputy Speaker and Chairperson of the Liaison Committee, Hon. Gladys Boss was passed by the National Assembly on March 14, 2025, with amendments.

It authorizes the withdrawal of funds from the Consolidated Fund for the financial year ending June 30, 2025, ensuring that the government meets emerging financial obligations while maintaining fiscal discipline.

The Supplementary Estimates II for the 2024/25 financial year, which form the basis of the Bill, were developed in response to both domestic and global economic conditions.

With the economy showing signs of stability, characterized by declining inflation, lower interest rates, a stable shilling, reduced food prices, and falling global oil prices, the adjustments in the Estimates aim to align government spending with the country’s financial priorities.

The new law also regularizes expenditures incurred under Article 223 of the Constitution, which requires parliamentary approval, and accommodates additional budgetary allocations and reallocations.

The enactment of the Bill will provide much-needed funding to the education sector, with an additional Kshs. 18 billion allocated to the Teachers Service Commission for teacher promotions, personnel emoluments, and insurance shortfalls.

The State Department for Technical and Vocational Education and Training (TVETs) has been allocated Kshs. 8 billion following an upward revision of Appropriation-in-Aid, while university education has received Kshs. 16 billion to cater for, among other needs, the implementation of the Universities Collective Bargaining Agreement (CBA) and the revision of universities' Appropriation-in-Aid upwards by Kshs. 6.48 billion.

Additionally, Kshs. 6.5 billion has been set aside for the Kenya Primary Education Equity in Learning Program, supported by the World Bank.

In the health sector, the new law seeks to strengthen Universal Health Coverage (UHC) by allocating Kshs. 1.5 billion for the recapitalization of KEMSA, Kshs. 3 billion each for the Primary Healthcare Fund and the Emergency, Chronic, and Critical Illness Fund, and Kshs. 1.5 billion for stipends to healthcare interns. To address funding gaps in major referral hospitals, Moi Teaching and Referral Hospital has been allocated Kshs. 1 billion for personnel emoluments, while Kenyatta National Hospital and Kenyatta University Teaching, Referral and Research Hospital will receive Kshs. 1.7 billion and Kshs. 1.4 billion, respectively, through Appropriation-in-Aid.

The security sector is also set to benefit from the new law, with Kshs. 7.5 billion allocated to the National Police Service. Of this, Kshs. 5 billion will cater for shortfalls in police insurance costs, while Kshs. 2.5 billion will support Kenya’s peacekeeping mission in Haiti.

Further allocations include Kshs. 5 billion for drought relief interventions, Kshs. 16 billion for roads infrastructure, Kshs. 4.6 billion for the State Department for Tourism, and Kshs. 8 billion to address personnel emolument shortfalls at the Kenya Revenue Authority (KRA).