Kenya’s Treasury Cabinet Secretary on June 12 presented a KES 4.29 trillion ($33.14bn) budget for the 2025/26 financial year to Parliament, hours after demonstrators clashed with police in Nairobi following the death of blogger Albert Ojwang in custody under suspicious circumstances, Business Daily reported.

Ojwang, 31, who wrote about politics and social issues, was arrested last week in western Kenya after criticising the Deputy Inspector General of Police, Eliud Lagat, on social media. The former teacher turned blogger was transported on June 6 to the capital Nairobi – over 300km away – where he died in custody hours later from “head injuries”.

Anger over his death led protesters to block roads in Nairobi and torch vehicles, with many attempting to march on Parliament as lawmakers debated the national budget. Riot police fired tear gas to disperse crowds.

The unrest comes a year after anti-tax protests in Kenya last summer left over 60 dead. Several activists and protesters were killed and taken by police during the protests – many are still missing.

Many demonstrators this week tied the issues of police killings and the rising cost of living, amid perceived widespread corruption by state officials, carrying banners saying "Stop killing us" and chanting "No justice! No budget!

The Treasury plans to raise KES 3.328 trillion ($25.71bn) from tax and non-tax revenues and borrow KES 916.5bn ($7.08bn) to plug the budget deficit. On June 11, Parliament revised the budget estimates, adding KES 13bn ($100.43mn) for the military while slashing funds for education, public financial management and sports.

The Executive’s allocation rose to KES 2.462 trillion ($19.02bn), while Parliament and the Judiciary will receive KES 47.99bn ($370.72mn) and KES 27.78bn ($214.60mn), respectively. Debt servicing will cost KES 1.09 trillion ($8.42bn), and KES 405bn ($3.13bn) will be disbursed to counties.

“There’s neither proposed new taxes nor proposed new tax rates,” the Treasury said as quoted by Business Daily, referencing the 2024 youth-led protests over tax hikes. “We have chosen to enhance tax revenue collections through administrative reforms by simplifying and streamlining tax laws.”

Kenya’s latest budget comes amid growing scrutiny of its fiscal direction, with public debt reaching KES 11.02 trillion ($85bn) by January 2025, as bne IntelliNews reported. Treasury CS John Mbadi told the Senate Finance and Budget Committee on March 18 that this includes KES 5.93 trillion ($45.74bn) in domestic debt and KES 5.09 trillion ($39.26bn) in external borrowing. With nearly a quarter of the budget earmarked for debt servicing, pressure is mounting over the country's borrowing strategy.

Kenya’s economic stature is also rising. As bne IntelliNews reported, Kenya is set to overtake Ethiopia as East Africa’s largest economy in 2025, with IMF projections placing Kenya’s GDP at $132bn versus Ethiopia’s $117bn. The IMF cited strong exports, remittances and currency resilience.

From July, all public procurement will shift to a digital system. The Treasury told Business Daily it has trained 400 end users. Kenya’s electronic payment system will also operate 24/7, and 65,625 pending bill claims worth KES 571bn ($4.41bn) are under review.

Ongoing reforms target debt transparency, exam fee subsidies, asset registration, and full Treasury Single Account rollout by 2026/27.