Rwanda bets on infrastructure as budget shrinks

By Prince Boris Cyubahiro.

Kigali, February 12, 2026 – Rwanda has taken a strategic approach with its revised 2025/26 national budget, trimming overall spending while significantly boosting allocations to development projects.

The Frw 6,952.1 billion budget, presented by finance minister Yusuf Murangwa, cuts Frw 80.4 billion from the original plan but channels Frw 353.2 billion more into capital investment.

Improved financing arrangements for the new Kigali international airport project, combined with the rescheduling of a RwandAir loan repayment to the next fiscal year, have reduced the need for budgetary borrowing by Frw 645.4 billion, strengthening Rwanda’s fiscal position.

“This revision reflects prudent fiscal management,” Murangwa said. “By securing better terms for major investments and managing cash flows wisely, we strengthen our fiscal position while protecting key spending priorities.”

Projected tax and other revenues were revised upward by Frw 41 billion, reflecting confidence in domestic revenue mobilisation, while the recurrent budget was reduced by Frw 198 billion to Frw 4,114.9 billion.

The increase in development spending aims to sustain momentum in infrastructure and national priority projects, signaling Rwanda’s commitment to long-term growth while maintaining fiscal discipline.

The government will continue to monitor economic performance closely to ensure effective budget execution and macroeconomic stability throughout the fiscal year.