Education Sector Gets Largest Budget Boost In 2026/27 Plan

By Janet Chepkurui

The education sector is set to receive the largest share of new government spending in the 2026/27 financial year as the state increases allocations to support reforms and expand learning infrastructure.

A report by the National Assembly Budget and Appropriations Committee shows ministerial expenditure is projected to rise by Sh379.1 billion, with the education sector receiving the biggest portion of the increase.

The report indicates the additional funding will largely support teacher resource management and university education as the government continues implementing the Competency-Based Education and Training system.

“The largest share of this increment, amounting to Sh64.2 billion, is allocated to the education sector,” the committee said in its review of the 2026 Budget Policy Statement.

According to the committee, the increase is mainly driven by Sh34.9 billion for teacher resource management and Sh6.4 billion for university education, reflecting continued investment in the transition to competency-based learning.

“The increase is largely driven by an additional Sh34.9 billion for teacher resource management and Sh6.4 billion for university education, reflecting the government’s continued implementation of reforms in Competency-Based Education and Training,” the report states.

Lawmakers, however, noted that the sector continues to face structural challenges that could undermine the impact of increased funding if not addressed.

The committee observed that delays in disbursing capitation funds to schools, persistent infrastructure gaps and shortages of teachers remain key concerns across the education system.

“Key issues include the adequacy of capitation funds, delays in their disbursement, persistent infrastructure gaps, and the misalignment of teaching resources with students’ actual learning needs,” the committee said.

The report also flagged the rising demand for higher education funding as the number of students seeking university support continues to increase while available resources remain limited.

The committee noted that the number of applicants to the Higher Education Loans Board has continued to grow sharply, increasing pressure on government financing for university students.

Parliament’s review of the 2026 Budget Policy Statement forms the basis for preparation of the national budget estimates and will guide spending priorities across government ministries and agencies.

The education sector remains a key pillar of the government’s economic strategy, which places emphasis on skills development, training and workforce readiness.

Lawmakers said strengthening education funding is critical to supporting long-term economic growth and improving opportunities for young people entering the labour market.