Government Allocates Sh124.6 Billion for Infrastructure and Irrigation Projects in 2026

The Kenyan government has outlined its infrastructure priorities for the 2026/27 financial year, dedicating Sh124.6 billion to a selection of high-profile projects across the transport and water sectors. This budgetary framework focuses on the continued expansion of the railway network, the modernization of aviation facilities, and the development of irrigation schemes to stabilize domestic food production.

A substantial portion of the funding is directed toward the State Department for Transport, which receives Sh48.5 billion. Of this amount, Sh35.1 billion is earmarked for the Standard Gauge Railway. These funds are intended to support the extension of the line from Naivasha to Kisumu and Malaba, as well as the acquisition of additional rolling stock. The Kenya Railways Corporation expects these investments to improve the efficiency of cargo movement from the Port of Mombasa to the hinterland and neighboring landlocked countries.

The aviation sector has been allocated Sh13.4 billion, with the Kenya Airports Authority focusing on the refurbishment of Jomo Kenyatta International Airport in Nairobi. The planned works include the renovation of Terminal 1 and the primary runway, alongside improvements to the air traffic control systems. These interventions follow a series of operational challenges at the facility caused by aging infrastructure and drainage issues.

In the water sector, the government has designated Sh42.3 billion for the State Department for Irrigation. This funding supports the completion of the Thiba Dam project and the expansion of the Mwea Irrigation Scheme. Officials indicate that the objective is to increase the acreage under irrigation by 150,000 hectares, reducing the country's reliance on rain-fed agriculture.

The remaining Sh33.8 billion is spread across various smaller-scale urban development projects and the maintenance of existing public works. While the budget reflects a commitment to major capital projects, the National Treasury has noted that implementation will depend on the timely acquisition of external financing and the management of current debt obligations.