Budget: Treasury bets Sh261bn on transport to unlock Kenya's economic arteries

Treasury CS John Mbadi reads 2026-27 Budget at Parliament buildings, Nairobi. June 11th, 2026. [Elvis Ogina, Standard]

Treasury Cabinet Secretary John Mbadi has proposed Sh261 billion for transport infrastructure in the 2026-2027 budget, with roads claiming the lion's share.

Tabling the budget before the National Assembly on Thursday, June 11, the CS proposed Sh220.4 billion for roads alone. The bulk of this, Sh118.1 billion, goes to maintenance.

"Infrastructure is the backbone of economic transformation," said Mbadi, adding that the allocation would support connectivity, freight efficiency and long-term road preservation.

The roads budget also sets aside Sh44.3 billion for construction of new roads and bridges and Sh58 billion for rehabilitation of existing ones.

In the 2025-26 budget, Mbadi had proposed Sh217.3 billion for roads, which included Sh115.6 billion for maintenance, Sh70.8 billion for rehabilitation and Sh30.9 billion for construction of roads and bridges.

A KSh 13.64 billion budget for State House sounds lower than last year's spending.

But after billions in supplementary allocations, soaring travel and hospitality costs, and a funding request of KSh 20 billion, the real story is far more complicated.

Where does the money go—and… pic.twitter.com/TsTuuF7HvD — The Standard Digital (@StandardKenya) June 11, 2026

The  steady increase comes against a backdrop of a backlog of unpaid contractor invoices that stood at Sh128.36 billion at the end of June 2025, down from a record Sh166.76 billion the previous year, but still reflecting financial stress within the road infrastructure portfolio.

Railways receive Sh38.4 billion, up from Sh37.1 billion proposed in the 2025/26 budget. Maritime transport gets Sh1.65 billion, spread across the Kenya Ferry Ramp in Likoni, Mombasa (Sh400 million), public ferry landing ramps on Lake Victoria (Sh1 billion), and the acquisition of a new public ferry (Sh150 million).

The Nairobi Bus Rapid Transport (BRT) Project, designed to ease gridlock in the capital, receives Sh582 million, nearly double the Sh300 million set aside for it in the previous financial year.