Sh18bn Two-Week Budget Row

by KenyaPolls

A newly approved Sh18 billion supplementary budget, passed by Parliament less than two weeks before the end of the financial year, has sparked a heated debate over politics and accountability.

Critics are asking why billions are being channelled to State House and security bodies while crucial sectors, including health and education, still face funding shortages.

It marks the second supplementary budget the Executive has brought before Parliament, in addition to the main budget already approved by the National Assembly.

The dispute centres on a Sh1 billion allocation 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 been granted an extra Sh1.55 billion.

The additional funds were inserted in the Supplementary Appropriations Bill (No. 2), 2026, intended to provide more resources to several state agencies before the financial year closes.

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

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

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

However, although the government says the allocations are needed to close budget gaps, opponents say they point to a different reality.

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

The issue sparked intense exchanges both inside Parliament and beyond its walls.

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 is strong on promises but weak on delivery, marked by impulsive spending and limited transparency and accountability.”

The lawmaker challenged the logic 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, saying Parliament was being asked to approve billions just days before the end of the financial year.

“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 remarks reflected critics’ argument that the process weakens parliamentary oversight by pushing legislators to approve expenditure that cannot be properly examined.

Civil society groups outside Parliament raised similar objections.

Institute for Social Accountability (TISA) executive director Diana Gichengo accused the government of turning emergency spending tools, originally meant for exceptional situations, into a routine practice.

“They don’t 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 said the government was increasingly depending on supplementary allocations despite the lack of major emergencies that would warrant 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 steadily increasing 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 new supplementary allocations have also become a rallying issue for the opposition, with prominent figures alleging wrongdoing.

Democracy for Citizens Party leader Rigathi Gachagua attacked the Ruto team, accusing it of diverting public resources through spending lines that attract little 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 ends. “This is happening when hospitals have no drugs, cancer patients are in deep pain, our students have no capitation, university and college students have no funding.”

Supporters of Ruto, 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 budgeting.

“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 said the extra allocation should not be viewed 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, saying 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.”

Even some MPs who backed the Bill admitted concerns about oversight of confidential spending, although they rejected claims that confidential votes still exist, citing the 2024 ban.

Rarieda MP Otiende Amollo supported the allocations but warned agencies against requesting money they may not spend before the end of the financial year.

“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 supported by findings in the latest Controller of Budget report.

COB Margaret Nyakang’o, in her third-quarter budget implementation review report, raised concerns 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 worth Sh206.81 billion, with Sh187.34 billion going to recurrent expenditure.

Nyakang’o said some requests submitted under Article 223 appeared to be financing routine government operations rather than unexpected 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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