Queries as State House spends Sh4 billion in three months

By Newsflash Writer

State House has once again drawn scrutiny over its growing appetite for spending outside the normal budgetary process, after seeking an additional Sh4 billion for the 2025/26 financial year with the approval of the National Treasury, even as the Controller of Budget raised red flags.

Kenya’s Constitution allows the national government to access extra funding where approved allocations prove inadequate, particularly during emergencies such as droughts, floods, or public health crises. However, concerns have emerged that the latest request does not meet the threshold of urgency envisaged under the law.

The additional funding request, processed under Article 223 of the Constitution, has been criticised by fiscal experts at the Parliamentary Budget Office (PBO), who argue it amounts to an abuse of constitutional provisions and reflects poor fiscal discipline. They warn that such practices erode the credibility of the national budget.

Documents tabled before the National Assembly by Treasury Cabinet Secretary John Mbadi show that State House initially sought Sh2 billion on September 8, 2025—barely three months into the financial year—to cover “other operating expenses,” which analysts note are not emergency-related.

Mr Mbadi told lawmakers that the Treasury had approved additional funding for several ministries, departments, and agencies in line with the Constitution, and submitted a schedule of expenditures approved under Article 223 for parliamentary ratification.

Controller of Budget raises alarm

State House was allocated Sh8.58 billion for the 2025/26 financial year, down from Sh12.07 billion in the previous year. However, Controller of Budget Margaret Nyakang’o warned that despite strong early spending performance, the pace of expenditure posed a risk.

According to documents submitted to Parliament, State House recorded a 55 per cent absorption rate in the first quarter—well above the average of 25 per cent—raising concerns that the budget could be exhausted before the end of the fiscal year.

“While this reflects efficient budget execution, it also presents a risk of depletion midstream, leading to budget non-credibility,” Dr Nyakang’o cautioned.

MPs question timing

Although Article 223 requires parliamentary approval within two months of the first withdrawal from the Contingencies Fund, the National Assembly had not approved the initial Sh2 billion more than three months later due to a prolonged recess. Despite this, State House proceeded to seek approval for an additional Sh2 billion.

If approved, the cumulative Sh4 billion would push State House’s budget to Sh12.58 billion within the first half of the financial year—surpassing last year’s total allocation.

A member of the Budget and Appropriations Committee revealed that Treasury advised MPs to process both funding requests simultaneously, while a PBO analyst warned that repeated reliance on Article 223 could undermine public confidence in the budget process.

State House expenditures cover coordination of official functions and statutory benefits for retired presidents and deputy presidents. By the end of the first quarter, Sh4.7 billion had already been spent, with further spending anticipated as the year progresses.