NAIROBI, Kenya — The government withdrew Sh11 billion from the national emergency fund in December 2024 to prevent a looming doctors’ strike and clear pending payments to contractors, according to a new report from the Controller of Budget (CoB), Margaret Nyakang’o.
The funds were accessed under Article 223 of the Constitution, which allows the government to spend money outside the budget in emergencies, with parliamentary approval required within two months.
A breakdown of the expenditure shows that Sh1.75 billion was withdrawn on December 20 to settle salary arrears owed to doctors, stemming from the delayed implementation of the 2017-2021 collective bargaining agreement (CBA).
The request was made by the State Department for Public Health and approved by Treasury Cabinet Secretary John Mbadi on the same day, amid fears that doctors would walk out during the festive season.
The government has been struggling with financial constraints, and doctors have repeatedly threatened industrial action over unpaid dues.
Despite the emergency intervention, healthcare workers have remained vocal about systemic delays in salary payments and unresolved labor agreements.
Beyond the health sector, the CoB report shows that a significant portion of emergency spending went toward settling pending infrastructure bills.
On December 9, the government withdrew Sh8 billion for the State Department for Roads to pay contractors and finance urgent roadworks.
Kenya’s road agencies continue to hold some of the largest unpaid debts, with the Kenya National Highways Authority (KeNHA) and Kenya Rural Roads Authority (KeRRA) owing Sh89.9 billion and Sh66.3 billion, respectively.
In total, the government accessed Sh16.9 billion under Article 223 in the first half of the 2024/2025 financial year.
Of this, Sh12.8 billion was directed toward development projects, while Sh4.15 billion covered recurrent expenses, including salaries and government operations.
Additionally, the CoB report reveals that in December, Sh354.4 million was allocated to the State Department for Broadcasting and Telecommunications to settle outstanding bills under the Government Advertising Agency (GAA), which has also faced criticism over delayed payments to media houses.
While the government defends the emergency withdrawals as necessary to maintain essential services and avoid a crisis, the reliance on Article 223 spending raises concerns about financial planning and transparency.
