A new report by the Office of the Controller of Budget has revealed a sharp rise in government spending outside approved allocations during the first nine months of the 2025/2026 financial year, with more than Ksh.200 billion released through emergency expenditure provisions.
“Between July 2025 and March 2026, the National Treasury sought authority to access Ksh.276 billion under Article 223 of the Constitution, a provision that permits expenditure on urgent and unforeseen needs before parliamentary approval is obtained,” the report revealed.
Of that amount, the Controller of Budget authorised withdrawals totalling Ksh.206 billion, representing a substantial increase compared to the same period in the previous financial year.
A significant share of the funds was directed toward servicing the country’s debt obligations.
Treasury records indicate that Ksh.144 billion was used to settle public debt commitments, making debt repayment the largest beneficiary of the additional spending.
The report further shows that recurrent expenditure accounted for the bulk of the approved withdrawals, absorbing Ksh.185.3 billion, while development projects received Ksh.19.5 billion.
Several government departments also benefited from the supplementary funding.
The State Department for Internal Security and National Administration received Ksh.6.1 billion beyond its initial allocation, while the State Department for Special Programmes utilised Ksh.5.6 billion, much of it linked to drought response measures undertaken between late 2025 and early 2026.
The Teachers Service Commission accessed Ksh.7 billion through the same mechanism, while the sports sector obtained Ksh.3.9 billion for development-related activities.
Particular attention was drawn to spending at State House, which received Ksh.4.45 billion outside its approved budget during the review period.
According to the report, State House had already exhausted more than 90 per cent of its annual allocation by December 2025. Its approved budget for the year stood at Ksh.8.5 billion, but expenditure had climbed to Ksh.12.07 billion by March 2026, translating to 140 per cent of the original allocation.
Financial records reviewed by the Controller of Budget show that several withdrawals were made within a relatively short period. Between January and February alone, State House received approvals amounting to approximately Ksh.2.5 billion.
The expenditure was largely recorded under the category of other expenses a broad classification also used by other government institutions.
During the same period, State House hosted a number of activities, including meetings associated with the Nyota empowerment programme held in different regions of the country.
The report also paints a broader picture of Kenya’s fiscal position, indicating that the country’s public debt has risen to Ksh.12.8 trillion amid continued borrowing and increasing debt-servicing obligations.
The findings are likely to reignite debate over the use of emergency spending provisions, with analysts expected to scrutinise whether expenditures classified as urgent and unforeseen align with the constitutional intent of Article 223.
As pressure mounts on public finances, the report underscores the growing challenge of balancing government operations, development priorities and an expanding debt burden.
