Sh18bn budget row

by KenyaPolls

A newly approved Sh18 billion supplementary budget, passed by Parliament less than two weeks before the financial year ends, has sparked intense political and accountability concerns.

Critics are asking why billions of shillings are being channeled to State House and security agencies while major sectors such as health and education continue to face funding shortages.

This marks the second supplementary budget the Executive has taken to Parliament, in addition to the original budget already approved by the National Assembly.

Central to the dispute are allocations of Sh1 billion to State House for other operating expenses and Sh3.5 billion to the National Intelligence Service (NIS) for security operations.

The State Department for Internal Security has received an additional Sh1.55 billion.

The extra funds were included in the Supplementary Appropriations Bill (No. 2), 2026, which sought to provide additional resources to several government agencies before the close of the financial year.

Other recipients include the Sports department, which received Sh4.1 billion for Talanta Stadium, and the Water department, which was allocated Sh2.3 billion for Mwache Dam payments.

The Education department received Sh1.5 billion for examination invigilation fees, while the Broadcasting department was given Sh150 million to facilitate the 2026 World Cup broadcasting rights.

The government also set aside Sh5.7 billion for the NYOTA programme, divided between the State Department for MSMEs and the State Department for Youth Affairs.

However, while the government maintains that the allocations are needed to address budget gaps, opponents see a different agenda.

They say the move reflects weak planning, heavy dependence on supplementary budgets and rising spending under votes that receive limited public scrutiny.

The controversy unfolded sharply both inside and outside Parliament.

Suba South MP Caroli Omondi was among the strongest critics. “What we are seeing is a long list of examples of poor planning in this administration, a government that makes many promises but delivers little, marked by impulsive spending and limited transparency and accountability.”

The legislator challenged the reasoning behind the allocations. “We know why this money is being allocated to these particular offices; it is to provide resources for political campaigns. It is confidential expenditure that nobody can verify,” he alleged.

Kajiado North MP Onesmus Ngogoyo also questioned the timing of the allocations, noting that Parliament was being asked to approve billions of shillings just days before the financial year closes.

“It is just two weeks to the end of the financial year,” Ngogoyo said. “When are they going to spend this money, at what point and on what?”

His concerns reflected arguments from critics who say the move weakens parliamentary oversight by rushing lawmakers into approving expenditure that cannot be properly scrutinised.

Beyond Parliament, civil society organisations raised similar objections.

Institute for Social Accountability (TISA) executive director Diana Gichengo accused the government of turning emergency spending mechanisms into routine tools, despite their original purpose being exceptional circumstances.

“They do not respect the need for planning and due process. They have made it the norm,” Gichengo said.

“Considering that ministerial expenditure is about Sh2 trillion, the new allocations would push the extra budget high by Sh332 billion, which is more than the 10 per cent allowed in law.”

She argued that the government is increasingly relying on supplementary allocations despite the absence of major emergencies that would justify such spending.

“They have overshot the allocations by 10 per cent yet we did not have any major emergencies like Covid-19 or floods, and the drought situation was handled by well-wishers,” she said.

“Kenyans should know that the Sh18 billion has to be borrowed,” Gichengo said, while also questioning the rising allocations to intelligence agencies.

“For instance, why is the NIS budget ever increasing, yet intelligence is not financial. We must call out this appetite for using expensive credit for non-emergencies,” she said.

The fresh supplementary allocations have also become a rallying point for the opposition, with prominent figures alleging foul play.

Democracy for Citizens Party leader Rigathi Gachagua criticised the Ruto team, accusing it of diverting public resources through spending lines that attract minimal public scrutiny.

“The money is to be drawn in cash through votes disguised as maintenance and operations, other operating expenses and security operations,” Gachagua claimed.

He alleged that the funds would be used for political purposes. “This is happening when hospitals have no drugs, cancer patients are in deep pain, our students have no capitation, and university and college students have no funding.”

Ruto allies, however, rejected the criticism and defended the allocations as lawful and necessary.

Budget and Appropriations Committee chairman Samuel Atandi argued that supplementary budgets are unavoidable because Parliament rarely gives agencies the full amounts they request during the budgeting process.

“There is no time we have been able to meet the budget requirements 100 per cent,” Atandi said. “The resource requirement for State House is about Sh25 billion. As at now, State House has a gap of about Sh8 billion, which we are unable to fund.”

He insisted that the additional allocation should not be seen as overfunding. “Therefore, this debate about State House being overfunded needs to come to an end,” he said.

Atandi also defended the allocation to NIS. “For example, NIS has a resource gap of Sh30 billion. We must admit that this House will never find resources to fully fund budget requests.” “The budget before us is therefore proper.”

Narok West MP Gabriel Tongoyo, whose committee oversees allocations to some of the affected offices, also moved to reassure the public.

“It is my committee that appropriates and allocates funds to these offices, and I can confirm to the country and this House that these funds are well spent, justified and are for the good of the country, not an individual,” he said.

Majority Leader Kimani Ichung’wah also defended the supplementary estimates, arguing that part of the spending would directly benefit ordinary Kenyans.

“We are using the power of the purse to create at least even one job,” Ichung’wah said. “The NYOTA programme is not just supporting the growth of our country but changing the lives of families.”

He argued that the budget was largely a realignment exercise. “The budget is also realigning areas where a state department cannot absorb allocated resources.”

“Sh1.8 billion is coming from the Contingency Fund and is being taken to more important things,” Ichung’wah added. “Even as we politick, let us use this House to inform Kenyans of the facts.”

However, even some MPs who supported the Bill acknowledged concerns over oversight of confidential expenditure, although they dismissed the existence of confidential votes, citing the 2024 ban.

Rarieda MP Otiende Amollo supported the allocations but warned agencies against seeking funds they may not spend before the financial year ends.

“I note that we have 12 days to the end of the financial year,” Amollo said. “I am hoping that the committee will caution the agencies to spend the money before the end of the financial year.”

He also raised concerns about confidential expenditure. “I note that half of this budget goes to agencies that handle confidential expenditure. I urge the Finance Committee and Budget Committee to work with Treasury on guidelines that separate what amounts to confidential expenditure.”

Funyula MP Wilberforce Oundo echoed the concern. “Those of us who sit in the Public Accounts Committee see several agencies fail to unpack confidential expenditure every year,” he said.

The concerns are reinforced by findings in the latest Controller of Budget report.

COB Margaret Nyakang’o, in her third-quarter budget implementation review report, raised alarms over the sharp rise in the use of supplementary estimates.

According to the report, Treasury approved Sh276.9 billion under Article 223 of the Constitution during the first nine months of the 2025-26 financial year.

Of the approved amount, the Controller of Budget authorised releases totaling Sh206.81 billion, of which Sh187.34 billion was for recurrent expenditure.

Nyakang’o said some requests submitted under Article 223 appeared to fund routine government operations rather than unforeseen emergencies.

“Some were routine in nature, intended to support day-to-day office operations,” the report stated, with Nyakang’o recommending tighter controls.

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