With less than two weeks to the end of the financial year, the Treasury has returned to Parliament seeking urgent approval for an additional Sh18.9 billion to cover budget gaps caused by poor revenue performance and fresh financial demands from government departments.

Treasury Cabinet Secretary John Mbadi told lawmakers that the move is meant to cushion key services such as health, education, infrastructure, and salaries from disruption after a record Sh253 billion revenue shortfall by April.

“Included in the Financial Year Supplementary Estimates No. III is additional expenditure to cater for salaries shortfall, security-related interventions, among other priorities,” he said.

The documents tabled in the National Assembly show that ordinary revenue missed the target by Sh195.3 billion, while Appropriation in Aid underperformed by Sh57.7 billion.

The government had hoped to collect Sh2.5 trillion by April but only managed Sh2.2 trillion.

Since the approval of Supplementary Budget II in March, the Treasury has spent Sh34 billion under Article 223, with Sh28.5 billion going to recurrent expenses and Sh5.5 billion for development, out of which Sh23.2 billion has already been disbursed.

Mbadi said some budget items have gone past the 10 per cent legal variation limit and now need Parliament's special approval.

“Due to adjustments in the FY 2024–2025 supplementary No 2, some programmes have exceeded the 10 per cent threshold,” he said. “The National Treasury is therefore requesting special approval of the expenditure adjustments, which are beyond the 10 per cent threshold in accordance with regulation 40 (9) of the Public Finance Management regulations 2015.”

Despite the additional spending needs, overall ministerial allocations for the current financial year have dropped by 0.5 per cent compared to the original figures.

Among the ministries and departments getting a boost, the State Department for Social Protection and Senior Citizens tops the list with Sh12.5 billion, pushing its total budget to Sh47.8 billion.

The Treasury gets Sh5.85 billion, while the Housing Department receives Sh7.787 billion through development partner funding, bringing its allocation to over Sh82 billion.

The Water and Sanitation docket is allocated an extra Sh3.1 billion, the National Intelligence Service gets Sh3 billion, Lands and Physical Planning receives an additional Sh1 billion, the Information Communication department is awarded Sh2.2 billion, and Sports is boosted by Sh1.69 billion.

Mbadi said the adjustments are crucial to ensure the government stays afloat ahead of the new financial year, where it aims to raise Sh3.3 trillion in revenue.