No third budget as treasury requests nod for emergency spending

The move follows the approval of the second supplementary budget and suggests there will be no third budget tabled this financial year.
The National Treasury has officially requested Parliament to approve Sh9.3 billion in emergency funds already disbursed to various government departments, signalling that the government may not table a third supplementary budget for the current financial year ending June 30.
The funds were released following the passage of the second 2024/25 supplementary estimates and were distributed under Article 223 of the Constitution, which permits such spending under specific circumstances.
According to a detailed breakdown from the Treasury, a total of Sh50.9 billion had been approved for emergency use by multiple ministries and departments. Of that, Sh9.3 billion had already been released and is now being submitted to Parliament for formal approval.
Among the biggest recipients were the State Department for Social Protection with Sh12.4 billion, the State Department for Roads with Sh11.7 billion, State House with Sh2.75 billion, and the National Intelligence Service with Sh2 billion.
The Treasury said 15 government agencies benefited from these emergency allocations. Specifically, it noted that on May 15, an additional Sh358.1 million was disbursed to State House as part of these funds.
These disbursements were made following the approval of the supplementary estimates and without the usual appropriation by Parliament.
In a letter to the National Assembly dated May 23, Treasury Cabinet Secretary Mbadi outlined the legal justification for the disbursements and submitted a schedule of the approved expenditures.
“Following the approval of the 2024/25 supplementary estimates No. II, the National Treasury has granted additional funding and disbursements to Ministries, Departments, and Agencies in accordance with Article 223 of the Constitution,” he wrote.
“Please find attached a schedule of additional expenditure approvals granted under Article 223 of the Constitution for your necessary action.”
Article 223 of the Constitution allows the national government to allocate money that has not been appropriated by Parliament in advance, provided certain conditions are met.
These include situations where the approved funds are insufficient or where unforeseen expenditures arise. However, the Constitution requires that any such expenditure be brought to Parliament for approval within two months after the initial disbursement.
By turning to Article 223, the Treasury is signalling that it will not pursue another round of supplementary estimates for the 2024/25 financial year. The move may reflect an attempt to conclude the budget cycle without further revisions, relying instead on funds already released under emergency provisions.
This use of emergency funding provisions has become an increasingly common approach by the Executive to address urgent or underfunded priorities, but it has also drawn scrutiny from legislators and oversight bodies.
Parliament now has the task of either endorsing or rejecting these expenditures, which have already been committed by the various ministries and departments.