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MPs question Treasury over Sh40 billion Withdrawal

Business · Tania Wanjiku · March 10, 2025
MPs question Treasury over Sh40 billion Withdrawal
Treasury CS John Mbadi during a past media engagement. PHOTO/National Treasury
In Summary

The National Treasury is on the spot for withdrawing Sh40 billion from public funds without prior approval from Parliament, drawing sharp criticism from lawmakers who have termed the move illegal.

The National Treasury is on the spot for withdrawing Sh40 billion from public funds without prior consent from Parliament.

The move drew sharp criticism from lawmakers who have termed it illegal.

Appearing before the National Assembly’s Finance and National Planning Committee, Treasury Principal Secretary Chris Kiptoo revealed that various government agencies had sought over Sh900 billion for the 2024/25 financial year without parliamentary approval.

Treasury Cabinet Secretary John Mbadi authorized the release of Sh88.2 billion, with more than Sh40 billion already spent.

MPs expressed concern over the spending, accusing the Treasury of violating fiscal discipline.

Committee Chairman Kimani Kuria, vice-chairperson Benjamin Lang’at, and members John Ariko and Joseph Makilap demanded answers on why the funds were withdrawn without legislative approval.

“Could you provide evidence that the approval of Parliament was sought before the expenditures of the amounts were made?” Kuria asked.

In response, Treasury officials cited Article 223 of the Constitution, which permits the government to withdraw funds under special circumstances, such as emergencies, before seeking parliamentary approval within two months.

If Parliament is not in session, approval must be sought within two weeks of its next sitting.

However, MPs argued that the provision was being abused to bypass proper budgeting procedures.

Makilap criticised the Treasury, saying, “We are using Article 223 to run the budget of the country.”

Butula MP Joseph Oyula warned that failing to adhere to proper budgeting would set a dangerous precedent.

“You must budget adequately; otherwise, it will be difficult to control the other government agencies on the usage of public funds under Article 223,” he said.

Ariko also raised concerns about the misuse of the provision, stating, “Some items that are not emergency in nature should not be appearing under Article 223 of the Constitution.”

The revelations have reignited debate over the government’s budgetary practices, with MPs calling for stricter measures to curb the misuse of public funds.

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