NAIROBI, Kenya — National Treasury Cabinet Secretary John Mbadi is seeking special intervention from Parliament after the exchequer overshot the legal ministerial spending limit for the 2025/26 fiscal year.
According to a supplementary budget tabled on Wednesday, the government plans to increase ministerial expenditure by Sh287.4 billion—an 11.3 percent rise that breaches the 10 percent threshold set under Article 223 of the Constitution of Kenya.
The Legal Hurdle
Under Kenyan law, the Treasury is restricted from increasing approved ministerial budgets by more than 10 percent without prior legislative approval. By hitting an 11.3 percent increase, the exchequer is now forced to petition lawmakers to regularize the extra spending.
“The National Treasury is requesting the Parliament for special approval of the full year 2025-26 supplementary estimates number 1,” CS Mbadi stated in the budgetary report, citing the breach. When including allocations to county governments, the total requested increase jumps to Sh316.7 billion, or 13.5 percent.
Who Gains the Most?
The mini-budget reveals a significant reallocation of funds toward the presidency, pending bills, and election preparedness.
- State House: The Presidency has received a massive Sh8.4 billion boost after exhausting its initial full-year recurrent budget by January.
- National Identity Cards: The Department for Immigration and Citizen Services has been granted Sh4.39 billion for mobile ID issuance programs ahead of the 2027 General Election.
- NMS Pending Bills: Sh1.3 billion has been earmarked within the Office of the President to settle debts owed to contractors of the defunct Nairobi Metropolitan Services (NMS).
- Education Arrears: Sh3.88 billion has already been disbursed to settle outstanding arrears for the 2017 university lecturers’ Collective Bargaining Agreement (CBA).
Fiscal Discipline Concerns
The Treasury’s data shows that while recurrent spending—driven by wages and operational costs—has surpassed targets, development and county disbursements have suffered.
CS Mbadi warned that the “early exhaustion” of budgets by various state agencies undermines national fiscal planning. The Treasury has now directed all departments to strictly align their spending with quarterly ceilings to prevent further unplanned allocations.
Despite the breach, Parliament has historically approved such requests, often attributing the spikes to unexpected shifts in the cost of goods and essential services.
Summary of Supplementary Budget Increases
| Department/Sector | Additional Allocation | Purpose |
| State House | Sh8.4 Billion | Recurrent expenditure & administration |
| Immigration | Sh4.39 Billion | Mobile ID issuance for 2027 elections |
| Education | Sh3.88 Billion | University lecturers’ CBA arrears |
| Office of the President | Sh1.3 Billion | Defunct NMS pending bills |
