President William Ruto has assented into law the Supplementary Appropriation (No. 2) Act, 2026, paving the way for additional government spending to address emerging priorities as the 2025/2026 Financial Year comes to a close.

The Act gives effect to the Supplementary Estimates II, which seek to align budgetary allocations with actual expenditure requirements, available resources, operational shortfalls, enhanced security needs, and financing requirements for development partner supported programmes.

The Bill, sponsored by Budget and Appropriations Committee Chairperson Hon. Samuel Atandi was passed by the National Assembly on 18th June 2026 before being forwarded to the President for assent.

The approved Supplementary Estimates II increase total National Government ministerial expenditure by KSh18.2 billion, from KSh2.913 trillion to KSh2.931 trillion.

Of the additional allocation, recurrent expenditure has been increased by KSh7.6 billion, while development expenditure rises by KSh10.6 billion, reflecting the Government's focus on both operational requirements and strategic development projects.

Youth empowerment was a key beneficiary of the additional funding with the State Department for Micro, Small and Medium Enterprises Development allocated KSh3.85 billion towards youth enrolment in the National Youth Opportunities Towards Advancement (NYOTA) Programme.

A further KSh1.94 billion has been allocated to the State Department for Youth Affairs and Creative Economy to expand economic opportunities and improve livelihoods for young people through the same initiative.

The water sector received a significant boost, with KSh2.3 billion allocated to the State Department for Water and Sanitation to support implementation of the Mwache Dam Project, a flagship initiative aimed at addressing chronic water shortages in the Coast region.

In the education sector, KSh1.5 billion has been provided to the State Department for Basic Education to clear arrears related to the administration of national examinations and assessments.

Sports infrastructure projects have also received a boost, with KSh4.1 billion mobilized through the Sports, Arts and Social Development Fund. The funds will support the completion of AFCON stadiums and training facilities as Kenya intensifies preparations to co-host the 2027 African Cup of Nations.

The creative and broadcasting sector will receive KSh150 million for acquisition of broadcasting rights for the 2026 FIFA World Cup through the Kenya Broadcasting Corporation (KBC).

The enactment of the Supplementary Appropriation (No. 2) Act, 2026 is expected to support effective budget execution, ensure critical government programmes remain adequately funded, and facilitate the smooth closure of Government accounts for the current financial year.