President William Ruto has chaired a Cabinet meeting at State House, Nairobi, where ministers endorsed the proposed KSh4.7 trillion Budget for the 2026/27 financial year.
The budget includes KSh495.7 billion in transfers to county governments.
In a statement shared on X, the President said the allocation to counties is aimed at strengthening devolved services and supporting local development priorities.
The endorsement sets the stage for the next phase of the budget-making process, including presentation to the National Assembly for debate and approval.
The Cabinet also addressed the ongoing drought affecting parts of the country. According to the President, members authorised the release of KSh4.1 billion to scale up response interventions in the worst-hit regions.
The funds are expected to support food relief, water supply programmes and other emergency measures as the government moves to cushion vulnerable households.
On public sector reforms, the Cabinet approved payroll changes designed to tackle long-standing integrity concerns.
President Ruto said the reforms seek to resolve issues left unaddressed by previous administrations and ensure statutory deductions are uniformly deducted at source.
The move is expected to enhance accountability and streamline government salary management systems.
In the education sector, the Cabinet approved a series of Bills to align Kenya’s legal framework with the Competency-Based Education and Training (CBET) system.
The proposed laws will cover assessment, funding and placement at the tertiary level, as well as pre-service and in-service teacher training.
The reforms are intended to provide clarity and structure as the country transitions fully into the new education model.
If passed by Parliament, the legislative changes will anchor key aspects of the system in law and guide implementation across institutions.
The Cabinet resolutions come as the government faces economic pressure, climate-related challenges and ongoing reforms in key sectors.