A number of State agencies are faced with stuck projects due to delays by the National Treasury, which had not released cash for development projects by the end of November 2025.
At least seven offices and State departments with a combined development budget of Sh6.4 billion did not receive any funding for projects during the first five months of the current fiscal year, new disclosures from Treasury show.
The funding delays risk stalling projects being implemented by oversight bodies, social support services, and in the energy sector, the disclosures show.
The affected entities are the offices of the Deputy President, Auditor-General, Director of Public Prosecutions, and the Ethics and Anti-Corruption Commission (EACC), and the State departments for petroleum, children's services and special programmes.
Treasury has allocated Sh5.3 billion to the State Department for Petroleum for development projects, but it's among those that received no funding during the five months, despite planned projects such as the supply of 6kg liquefied petroleum gas cylinders to 100,000 low-income households and the provision of clean cooking gas to 200 learning institutions.
“During the medium-term period for the financial year 2025/26-2027/28, the State Department will prioritise initiatives aimed at enhancing the exploration, development, production, and commercialisation of oil and gas resources, thereby ensuring a reliable supply to support sustainable economic growth,” Treasury says in budget books for the current fiscal year.
It reckons that among projects targeted for implementation by the State department is the South Lokichar Oil Field, where acquisition of 80 percent of the land should be completed, and the development of the Kenya-Tanzania natural gas pipeline.
Deputy President
The DP’s office also has a Sh100 million development budget in the current year for funding of activities in the coffee sector and combating illicit alcohol and substance abuse, which was not funded by the Treasury.
The office has a total budget of Sh3.07 billion in the current fiscal year, out of which Sh2.97 billion was allocated to recurrent activities such as travel, hospitality, and salaries.
“In the fiscal year 2025/26 and the medium term, the primary outputs will encompass oversight and coordination of development partners' funded projects to ensure alignment with and support for the implementation of the BETA framework, as well as facilitating government strategic initiatives in the agriculture sector along the BETA value chains, including coffee and tea, among others,” Treasury says.
At the State Department for Special Programmes, Sh165.5 million was also not funded, putting into jeopardy programmes to support 400,000 households with relief food and production of drought contingency plans aimed at informing response.
The Auditor-General also missed out on funding for her office’s development projects, mainly around the expansion of regional offices and production of audit reports.
The office has a development budget of Sh330 million in the current fiscal year, though no funding had been released by the end of November 2025.
“In the financial year 2025/26 and the medium-term period, the office will continue to implement measures that will adhere to quality and timely audits in compliance with professional standards. This will be through the upgrade of the Audit Management System (AMS) to incorporate changes in audit standards.
“The Office also plans to establish more regional offices and furnish and fully equip the existing ones in order to respond to demand for timely access to audit services, acquisition of more audit management system licenses to accommodate newly recruited technical staff,” Treasury says in reference to the OAG.
Among targeted regional offices is the Mombasa office block, which is expected to reach a 28 percent completion level by the end of June 2026.
The EACC also has a Sh180 million development budget, which had not been funded by the end of November, the same as the State Department for Children Services, whose Sh244 million development budget was also not funded.
