NAIROBI, Kenya — Delays by the National Treasury in releasing development funds have stalled government projects worth Sh6.4 billion, leaving several state offices and departments unable to implement planned programmes during the first five months of the 2025/26 financial year.
Treasury disclosures show that at least seven state offices and departments had not received any development funding by the end of November 2025, despite approved budgets, raising concerns over stalled initiatives in energy, social protection, anti-corruption and oversight.
Among the affected institutions are the Office of the Deputy President, the Auditor-General, the Director of Public Prosecutions, the Ethics and Anti-Corruption Commission (EACC), and the State Departments for Petroleum, Children Services, and Special Programmes.
At the Deputy President’s office, Sh100 million earmarked for development projects—targeting reforms in the coffee sector and the fight against illicit alcohol and substance abuse—remained unreleased.
The office has an overall budget of Sh3.07 billion, with Sh2.97 billion allocated to recurrent spending such as salaries, travel and hospitality.
Treasury documents indicate that the office’s development agenda is intended to support the implementation of the Bottom-Up Economic Transformation Agenda (BETA), including coordination of donor-funded programmes and strengthening agricultural value chains such as coffee and tea.
The funding freeze has also hit the State Department for Special Programmes, where Sh165.5 million for development projects had not been disbursed.
The delay threatens food relief support for more than 400,000 vulnerable households, as well as the preparation of drought contingency plans.
Similarly, the Auditor-General’s office, which has a Sh330 million development budget for the year, did not receive any funds for projects including the expansion and equipping of regional audit offices and the upgrade of audit management systems.
Treasury disclosures show that the Auditor-General plans to improve audit quality and timeliness through system upgrades and the establishment of additional regional offices.
One of the key projects is the Mombasa regional office block, which is expected to reach 28 per cent completion by June 2026—a target now under threat due to the funding delays.
The Ethics and Anti-Corruption Commission, allocated Sh180 million for development, also remained unfunded during the period, potentially constraining its capacity to expand infrastructure and strengthen operations.
In the energy sector, the State Department for Petroleum—despite being allocated Sh5.3 billion for the year—had not received any development funding in the first five months.
Planned initiatives include the distribution of 6kg liquefied petroleum gas (LPG) cylinders to 100,000 low-income households and the provision of clean cooking gas to 200 learning institutions.
Treasury documents further indicate that the department is targeting major projects such as the South Lokichar Oil Field, where 80 per cent of land acquisition is expected to be completed, and the proposed Kenya–Tanzania natural gas pipeline, both aimed at boosting energy security and economic growth.
The delayed disbursements underscore persistent concerns over budget execution, with critical development projects across government now facing uncertainty despite parliamentary approval of funds.
