Treasury under fire as MPs condemn Sh40 billion withdrawals

By Newsflash Business

The National Treasury has come under intense scrutiny after Members of Parliament (MPs) accused it of authorizing the withdrawal of Sh40 billion from public funds without the required approval from the National Assembly.

During a heated session with the Finance and National Planning Committee on Friday, Treasury Principal Secretary (PS) Chris Kiptoo admitted that various government agencies had requested over Sh900 billion in expenditures for the 2024/25 financial year without parliamentary approval.

Out of these requests, Treasury Cabinet Secretary (CS) John Mbadi sanctioned Sh88.2 billion for Ministries, Departments, and Agencies (MDAs), with over Sh40 billion already spent. MPs condemned this move, calling it illegal and a threat to accountability and fiscal discipline. The approved expenditures also included Sh3.14 billion for the Treasury itself.

MPs demand justification

Committee members, led by Chairperson Kimani Kuria and Vice Chair Benjamin Lang’at, alongside MPs John Ariko and Joseph Makilap, questioned the legality of the withdrawals.

“Could you provide evidence that parliamentary approval was sought before these expenditures were made?” Mr Kuria challenged PS Kiptoo.

In response, the Treasury defended the spending under Article 223 of the Constitution, which allows the government to access funds in urgent situations when the appropriated budget is insufficient. However, the law requires Parliament to approve such spending within two months of withdrawal. If Parliament is not in session, approval must be sought within two weeks of its next sitting.

Misuse of emergency funding?

MPs argued that Article 223 was initially intended for emergencies such as natural disasters—droughts, floods, or pandemics—but has now become a tool for sidestepping budgetary controls.

“We are using Article 223 to manage the national budget,” lamented MP Makilap, expressing concern over the Treasury’s approach.

Butula MP Joseph Oyula emphasized the need for the Treasury to set a precedent in responsible financial management. “You must budget adequately, or it will be impossible to hold other government agencies accountable for their use of public funds under Article 223,” he warned.

MP John Ariko also criticized the Treasury for categorizing non-emergency expenditures under this provision. “Some items that do not qualify as emergencies should not appear under Article 223,” he stated.

The standoff highlights growing concerns over financial oversight, as MPs push for stricter controls to prevent abuse of public funds.