Controller of Budget Says Sh43 Billion Approved Outside Law

The National Treasury is facing scrutiny over Sh43 billion in additional allocations that the Controller of Budget, Margaret Nyakang’o, says were approved outside the law.

According to Nyakang’o, the extra funds include Sh33.54 billion for recurrent expenditure and Sh9.95 billion for development projects, with the State Department for Transport and the Treasury emerging as the top beneficiaries. She argued that some of the spending covers foreseeable costs, such as pending Covid-19 bills, which should have been included in the original budget approved by Parliament.

During the 2025/26 fiscal period, Treasury Cabinet Secretary John Mbadi authorised the Sh43.5 billion in additional funding to various government entities, including the National Treasury, without following legal procedures.

“The Treasury CS should expedite the submission of the necessary documentation to the National Assembly for approval within the stipulated two-month period to ensure compliance with constitutional requirements,” Nyakang’o said, highlighting delays in seeking parliamentary approval for the withdrawn funds.

The largest allocations went to the State Department for Transport, which received Sh6.3 billion, and the Treasury, which received Sh4.6 billion.

Nyakang’o raised concerns that some of the expenses relate to predictable or foreseeable circumstances. She pointed out payments for Covid-19 pending bills that were due more than six years ago, arguing that these should have been accounted for in the budget approved by Parliament in June 2025.

“To reduce over-reliance on Article 223 of the Constitution on foreseen expenses, it is necessary to adopt planning, budget practices, and sound expenditure management by prioritising all essential services and aligning them with operational realities during budget formulation and implementation,” Nyakang’o said.

Article 223 allows the national government to access additional funding during budget implementation for unbudgeted or insufficient expenditures or money withdrawn from the Contingencies Fund. However, it requires Parliament to approve the withdrawals within two months of the first release. Nyakang’o noted that more than five months have passed since the initial withdrawal, yet no approval has been sought.

For example, the CoB approved Sh200 million for withdrawal on September 25, 2025, by the Registrar of Political Parties to cater for the Civil Appeal of 2018 involving the Orange Democratic Movement (ODM). Nyakang’o said the Treasury has yet to regularise this amount post facto.

The Controller of Budget has now demanded that the Treasury comply with constitutional provisions and submit documentation to Parliament to legitimise the withdrawn funds.

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