A new report by the Controller of Budget (CoB) has raised red flags over fiscal discipline at the heart of government after it emerged that State House withdrew Sh3.6 billion in just 42 days for travel, hospitality, fuel, and vehicle maintenance.
The revelations come despite President William Ruto’s administration pledging to cut excessive spending following the collapse of the controversial 2024 Finance Bill.
Billions Released Under Article 223
According to the CoB’s National Government Budget Implementation Review Report for 2024/2025, the Treasury released the funds between May 14 and June 24, 2025 under Article 223 of the Constitution, which permits spending on emergencies not covered in Parliament-approved budgets.
Treasury Cabinet Secretary John Mbadi approved three sets of withdrawals totalling Sh3.6 billion. Out of this, CoB Margaret Nyakang’o authorised Sh2.3 billion in seven tranches, while Sh1.25 billion was approved by Treasury but never submitted for her clearance.
The approvals included:
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Sh1.5 billion on May 14 for travel, hospitality, fuel, and maintenance.
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Sh358.16 million on May 15.
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Sh263.46 million on May 21.
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Sh626.5 million on May 27.
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Sh250 million on May 28.
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Sh850 million on June 13, out of which Sh738 million was approved by CoB in three tranches between June 17–24.
Nyakang’o further disclosed that Sh17.4 billion in Treasury-approved withdrawals across government ministries were never authorised by her office.
Other Emergency Expenditures
The report detailed additional emergency allocations under Article 223, including:
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Sh1 billion for the National Police Service (NPS).
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Sh500 million for Internal Security & National Administration.
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Sh450 million for road upgrades in Homa Bay.
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Sh200 million for tree planting under the State Department of Forestry.
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Sh2 billion for the National Intelligence Service (NIS), with a further Sh1 billion approved by Treasury but not cleared by CoB.
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Sh1.68 billion for hosting the CHAN 2024 tournament.
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Sh12.47 billion for the Inua Jamii cash transfer programme.
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Sh1 billion to clear government-sponsored student bills at Mount Kenya University.
State House Operational Costs
The Controller of Budget also flagged State House for persistently high operational costs.
In the 2024/2025 financial year, the Executive Office of the President spent:
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Sh817 million on printing services (about Sh2 million daily).
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Sh1.9 billion on administration and support services.
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Sh765 million on leadership and coordination.
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Sh1 billion on advisory services.
Advisory costs alone covered 20 presidential advisers, including:
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Sh62 million on Kenya–South Sudan relations.
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Sh46 million on the Power of Mercy programme.
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Sh450 million on counter-terrorism initiatives.
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Sh97 million on economic and social affairs.
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Sh150 million on strategic policy.
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Sh251 million for oversight of public entities.
Meanwhile, refurbishment of State House has already consumed Sh1.17 billion, with works currently 66% complete and scheduled to finish in 2027.
CoB’s Warning
Nyakang’o criticised the overuse of Article 223, noting that many of the allocations were for predictable, ongoing programmes rather than genuine emergencies.
“Scrutiny of the approvals 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 breaches paragraph 40(4) of the PFM Regulations and suggests weaknesses in the budgeting cycle,” she said.
The report comes just weeks after the government was forced to abandon the 2024 Finance Bill, which had proposed Sh345 billion in new taxes but was withdrawn following widespread protests.
Despite promising austerity measures, the latest figures indicate that government spending on travel, allowances, and hospitality remains elevated, raising questions about Kenya Kwanza’s fiscal discipline.
