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State House withdrew Sh3.6bn for travel, meetings in 42 days
Controller of Budget Dr Margaret Nyakang'o when she appeared before the National Assembly Committee on Finance and National Planning at the Bunge Tower Nairobi on May 14, 2025.
The Controller of Budget (CoB) has revealed that the Treasury released the billions between May 14 and June 24, 2025 just six days to end of the financial year.
The money was released under Article 223 of the Constitution, which allows the State to spend cash on emergencies that were unforeseen during the approval of the budget by Parliament.
The CoB report shows that the Treasury made three approvals of Sh3.6 billion for State House to spend on local travels, hospitality and fuel.
Of the Sh3.6 billion spending, the Controller of Budget only approved Sh2.3 billion in seven batches.
Kenya announced cuts to spending in the wake of the withdrawal of the 2024 Finance Bill that had over Sh345 billion in new taxes after bloody protests.
The cuts targeted travel -- which often involves lavish allowances and use of taxpayer-backed motoring -- in an effort to rein in the fiscal deficit.
Controller of Budget Margaret Nyakang’o petitioned public officials to prioritise essential services during budgeting and not seek emergency funding for items that can be planned at the start of the year.
“Scrutiny of the approvals revealed several instances where additional funding was needed to support existing government programmes, which should have been anticipated during the budget formulation."
“Reliance on Article 223 to implement existing government programmes or initiatives breaches paragraph 40 (4) of the PFM (National Government) Regulations, 2015 and suggests potential lapses in the budget formulation process and/or weaknesses in the budgeting cycle,” Dr Nyakang’o said.
On May 14, Treasury Cabinet Secretary (CS) John Mbadi approved the withdrawal of Sh1.5 billion for State House to cover shortfalls in domestic travels, hospitality supplies, fuel and maintenance of vehicles, the report shows.
Following Mr Mbadi’s approval, the CoB authorised the withdrawal of Sh358.16 million the following day, Sh263.46 million on May 21, Sh626.5 million on May 27 and Sh250 million on May 28.
The report also notes that the Treasury approved the withdrawal of Sh850 million on June 13 for State House to “cater for shortfalls under the areas of expenditure for domestic travel, hospitality supplies & services, fuel expenses and maintenance of motor vehicles”, out of which the CoB authorised withdrawal of Sh738 million in three tranches between June 17 and June 24, 2025.
The CoB report, however, notes that a Sh1.25 billion withdrawal from the Consolidated Fund was approved by Mr Mbadi on May 15, but no request was sent to Dr Nyakang’o.
CoB Nyakang’o notes in the report that Sh17.4 billion spent during the year was not approved by her office, against legal requirements.
“During the financial year, the Controller of Budget authorised withdrawal of Sh66.54 billion under Article 223 of the Constitution compared to Sh83.96 billion approved by the CS, National Treasury. The difference of Sh17.42 billion constitutes approvals granted by the CS, but not requisitioned for approval of withdrawal by the COB,” Dr Nyakang’o said.
MPs, however, approved all the additional funding under Article 223 in the third supplementary budget towards the end of the financial year in June.
Among withdrawals forming the Sh17.4 billion from the emergency fund without CoB approval was Sh200 million by the State Department Forestry to facilitate tree planting and seedlings production, Sh1 billion by the National Police Service to cater for security-related expenditures and Sh500 million by the State Department for Internal Security & National Administration to cater for security-related operations and other national functions.
The State Department for Roads was also allowed by the Treasury to withdraw Sh450 million to facilitate upgrading to bitumen standards of Gor Mahia Ring Road, an Agolomuok-Otati-Kogore Road in Homa Bay Town on May 28, though no request was sent to the CoB.
The government hosted the June 1 Madaraka Day Celebrations in Homa Bay County.
Other approvals by the Treasury and CoB for emergency spending included Sh1 billion for the State Department for Internal Security and National Administration “to cater for enhanced security operations, local presidential functions and national celebrations.”
The Treasury approved the withdrawal on May 14, then the CoB approved it in three tranches of Sh300 million on May 21, Sh250 million on June 9 and an equal amount on June 17.
The National Intelligence Service (NIS) was also allowed to withdraw Sh2 billion for security operations between May 28 and June 24. A further request of Sh1 billion for enhanced emergency operational requirements was approved by the Treasury on June 15, but CoB approval was not sought.
In the State Department for Sports, the government was allowed to withdraw Sh1.68 billion on emergency terms early April “to cater for the payment of hosting rights for the African National Championship (CHAN) 2024 tournament.”
During the entire year running from July 2024 to June 2025, the Treasury approved the withdrawals of Sh83.9 billion on emergency terms, but the CoB authorised only Sh66.5 billion.
The State Department for Social Protection, Pensions & Senior Citizens Affairs also sought the withdrawal of Sh12.47 billion for the Inua Jamii cash transfer programme, with approvals granted between April 10 and June 23.
The State Department for Higher Education and Research was also allowed to pay Mount Kenya University Sh1 billion pending bills on June 10, for the placement of government-sponsored students.
