State House spent Sh3.6bn in 42 days through emergency withdrawals

State House spent Sh3.6 billion in just 42 days on domestic travel, hospitality, fuel and related costs under emergency withdrawals, raising fresh concerns about the government’s commitment to austerity.

A report by the Controller of Budget (CoB) shows the Treasury released the funds between May 14 and June 24, 2025, barely a week before the financial year closed.

The allocations were approved under Article 223 of the Constitution, which permits emergency spending on unforeseen needs outside Parliament’s original budget.

The CoB report shows the Treasury granted three approvals totaling Sh3.6 billion to State House for travel, hospitality and fuel expenses. However, only Sh2.3 billion was cleared by the Controller in seven batches.

The revelations come despite government pledges to cut down on travel and allowances after shelving the 2024 Finance Bill, which had introduced Sh345 billion in new taxes but was withdrawn following violent protests.

Controller of Budget Margaret Nyakang’o cautioned government officials against misusing emergency provisions for items that should be budgeted in advance.

“Scrutiny of the 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,” Nyakang’o said.

On May 14, Treasury Cabinet Secretary John Mbadi approved Sh1.5 billion for State House to cover shortfalls in domestic travel, fuel, hospitality supplies and vehicle maintenance.

Following this, the CoB authorised Sh358.16 million on May 15, Sh263.46 million on May 21, Sh626.5 million on May 27 and Sh250 million on May 28.

Later, on June 13, the Treasury approved another Sh850 million for the same purposes, of which Sh738 million was cleared by the CoB in three tranches between June 17 and June 24.

The report also reveals that Mbadi authorised Sh1.25 billion on May 15 for State House from the Consolidated Fund, but no request was ever sent to the CoB. Overall, Dr Nyakang’o flagged Sh17.4 billion in spending during the financial year that bypassed her office’s approval.

“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 stated.

Parliament later regularised all additional spending under Article 223 in the third supplementary budget at the close of the financial year.

Among the withdrawals that bypassed the CoB’s approval were Sh200 million by the State Department for Forestry for tree planting, Sh1 billion by the National Police Service for security operations, and Sh500 million by the State Department for Internal Security and National Administration.

The Treasury also allowed Sh450 million for road upgrades in Homa Bay ahead of the Madaraka Day celebrations, but no request was submitted to the CoB.

Other emergency approvals included Sh1 billion for Internal Security and National Administration to support presidential functions and national celebrations, which the CoB cleared in three instalments of Sh300 million, Sh250 million and Sh250 million between May and June.

The National Intelligence Service withdrew Sh2 billion for security operations between May 28 and June 24.

Another Sh1 billion was approved by the Treasury on June 15 for emergency operations but never reached the CoB for authorisation.

Separately, in April, the Treasury cleared Sh1.68 billion for the Sports Department to pay hosting rights for the 2024 African Nations Championship (CHAN).

In total, the Treasury approved Sh83.9 billion in emergency withdrawals in the 2024/25 financial year, while the CoB authorised Sh66.5 billion.