Kenya's State House has utilized an extra Sh4 billion without National Assembly approval just three months into the 2025/26 fiscal year, sparking concerns about fiscal discipline. Controller of Budget Dr. Margaret Nyakang’o cautions that this risks exhausting the budget before the year's end.
Kenya's State House has continued its pattern of spending without National Assembly approval, requesting Sh4 billion under Article 223 of the Constitution in the 2025/26 fiscal year. The first tranche of Sh2 billion came on September 8, 2025, for non-urgent expenditures, followed by another amid Parliament's Christmas recess.
Finance Minister John Mbadi submitted documents to Parliament to ratify the spending post-facto. "Since the approval of the 2025/26 fiscal year budget, the National Treasury has been issuing approvals for supplementary expenditures to Ministries, Departments, and Agencies in accordance with the Constitution," Mbadi stated.
The approved State House budget for 2025/26 stands at Sh8.58 billion, reduced from Sh12.07 billion the previous year. Dr. Nyakang’o noted strong first-quarter execution at 55%, exceeding the 25% average, but warned, “While this indicates good budget execution, it also poses a risk of running out of funds before the end of the 2025/26 fiscal year, which will affect budget credibility.”
Parliamentary Budget Office analysts describe this as a misuse of the Constitution, signaling fiscal indiscipline in the National Treasury. Article 223 requires approval within two months, yet over three have passed. If approved, the State House's budget for the first six months would reach Sh12.8 billion, surpassing the entire 2024/25 allocation.
This reflects an unchecked appetite at State House for supplementary funds, despite constitutional provisions limiting them to emergencies or unavoidable needs.
