NAIROBI, Kenya – The National Treasury authorised Sh43.5 billion in unplanned expenditure during the first quarter of the 2025/26 financial year, bypassing parliamentary approval and deepening concerns over Kenya’s growing reliance on emergency spending to run government operations.
According to the latest National Government Budget Implementation Review Report by Controller of Budget Margaret Nyakang’o, the funds were approved under Article 223 of the Constitution, which allows the government to spend outside the approved budget in cases of urgent and unforeseen need.
However, the report shows the provision is increasingly being used to finance routine operations, stalled development projects, financial bailouts and politically sensitive commitments — raising questions about fiscal discipline and transparency.
The largest single allocation was Sh16 billion to the State Department for Internal Security and National Administration, broadly described as catering for “security-related expenditures”, with no further details provided.
The lack of disclosure has triggered concerns over accountability, particularly given the scale of the allocation and the absence of parliamentary scrutiny.
Social welfare and food security also featured prominently in the emergency approvals.
The State Department for Social Protection and Senior Citizen Affairs received Sh3.71 billion to provide Social Health Insurance Fund (SHIF) cover for 450,000 vulnerable citizens and to support the development of the Social Protection Act.
Another Sh3 billion was approved for the State Department for Special Programmes to purchase essential food items, including maize, beans, rice and cooking oil.
The Treasury also sanctioned funds to settle outstanding debts and rescue struggling sectors.
The Agriculture Ministry received Sh2 billion to support sugar sector reforms and clear arrears owed to farmers, while the Ministry of Health was allocated at least Sh896.8 million to pay pending Covid-19 Health Emergency Response bills.
The Kenya Affordable Housing Finance Project was approved Sh1.88 billion to cover outstanding payments.
Infrastructure projects accounted for a significant portion of the spending. The Isiolo–Mandera Road project received Sh2 billion for contractor mobilisation, while the Transport Department was allocated Sh6.3 billion for advance payments on the Mombasa Special Economic Zone project at Dongo Kundu.
The Energy Department was granted Sh1.11 billion for the Kenya Electricity Expansion Project.
The report also highlights a politically sensitive approval of Sh200 million for the Office of the Registrar of Political Parties to meet costs linked to a legal case involving the Orange Democratic Movement (ODM).
This was the only allocation that directly involved political or legal expenses during the period under review.
Youth-focused initiatives also benefited from emergency funding, with Sh390 million approved for International Youth Day events, the development of a Youth Development Index, the WHOZ’S NEXT Talent Search Programme, and the purchase of a vehicle under the NYOTA Project.
An additional Sh300 million was authorised as counterpart funding for the VIVA Project, although details on the project were not disclosed.
Despite the Treasury approving Sh43.5 billion in unplanned spending, Nyakang’o noted that only Sh200 million received her office’s direct approval during the period.
While emphasising that the expenditure remained within the law, the Controller of Budget warned that the scale and frequency of off-budget spending point to persistent weaknesses in budget planning, fiscal oversight and prioritisation.
