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State House spent Sh3bn in nine months as auditor flags budget loopholes

State House spent Sh3bn in nine months as auditor flags budget loopholes
A cabinet meeting chaired by President William Ruto at State House Nairobi on March 11. PHOTO/PCS
In Summary

A new report by Controller of Budget Margaret Nyakango shows that while Ministries, Departments and Agencies reduced spending in some areas, high costs in key offices raise questions about the credibility of the austerity drive.

Government efforts to cut spending appear to be under strain, with top offices still recording heavy expenditure on travel, fuel, and hospitality, despite President Ruto’s promise of radical austerity.

A new report by Controller of Budget Margaret Nyakango shows that while Ministries, Departments and Agencies reduced spending in some areas, high costs in key offices raise questions about the credibility of the austerity drive.

The Executive Office of the President spent Sh3 billion in the first nine months of the 2024/2025 financial year.

Sh1.2 billion went to salaries and Sh145.3 million to domestic travel, up from Sh34 million the previous year. Foreign travel cost Sh30.38 million. Another Sh165.24 million went to hospitality, with fuel costs at Sh42.88 million.

The office also spent Sh899.8 million on other expenses, Sh222.37 million on rent, and Sh16.9 million on utilities and services. Office supplies cost Sh39.85 million, while printing and advertising took up Sh8.54 million.

State House alone spent Sh1 billion on domestic trips, an increase from Sh750 million the previous year. The Internal Security department, which supports presidential functions, recorded a 60 per cent rise in travel costs from Sh650 million to Sh1.04 billion.

The Office of the Deputy President also had a large budget, spending Sh2.2 billion in the same period. Salaries accounted for Sh717.4 million, domestic travel for Sh196.2 million, and hospitality for Sh295.09 million.

Other costs included Sh105.62 million for fuel, Sh43.68 million for printing and advertising, and Sh86 million for non-financial assets.

Nyakango said total foreign travel across government reached Sh2.29 billion, with overall travel costs at Sh16.83 billion.

While Parliament cut its foreign travel budget—Sh300 million by the National Assembly and Sh154 million by the Senate—State House still increased its own by over Sh9 million.

Spending on hospitality across MDAs dropped from Sh4.6 billion to Sh3.7 billion, but State House still used Sh697 million.

While printing and advertising, rentals, and insurance saw savings of Sh600 million, Sh400 million, and Sh5.4 billion respectively, these gains were offset by a Sh100 million rise in fuel and a Sh400 million jump in vehicle maintenance.

Meanwhile, Nyakango flagged the persistence of pending bills, which stood at Sh511.75 billion by March 2025. This continues to hurt small businesses supplying goods and services to the government, even as new expenditure keeps rising.

The Controller of Budget also warned about the misuse of Article 223 of the Constitution. Although it is meant for urgent and unforeseen needs, it is now being used to fund routine government programmes.

State House, for example, received Sh1.16 billion under Article 223, while the Social Protection Department got Sh1.24 billion from a World Bank loan already disbursed.

Projects across the country are still delayed. Junior secondary school classrooms, key roads, and rail links remain incomplete past their deadlines, weakening the intended impact of government spending in key social and infrastructure sectors.

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