The government’s drive to rein in spending has come under fresh scrutiny after its hospitality bill rose to Sh11.72 billion in the 2025/26 financial year, almost twice the amount recorded the previous year.
The expenditure increased from Sh6.33 billion in 2024/25, even as President William Ruto’s administration has been pushing ministries, departments and agencies to limit spending on items considered non-essential.
The rise is contained in the August 2026 National Government Budget Implementation and Review Report for the 2025/26 financial year tabled before Parliament.
The National Land Commission (NLC) accounted for the largest share of the hospitality expenditure, spending Sh1.71 billion during the year under review.
The report, prepared by Controller of Budget Margaret Nyakang’o, provides the annual review of how national government institutions used public funds during the financial year.
The jump in hospitality costs comes despite steps taken to strengthen control of government expenditure, including guidelines developed by the Public Service Commission (PSC) on hospitality and gifts.
The guidelines are meant to promote integrity among public servants and provide a framework for handling hospitality and gifts in government institutions.
"The government fiscal policy for the financial year 2025/26 and over the medium term was fiscal consolidation by reducing debt vulnerabilities, supported by expenditure rationalisation and revenue mobilisation efforts to strengthen expenditure control," says Dr Nyakango.
The rules governing hospitality and gifts are also contained in the Public Service Code of Conduct and Ethics. The PSC administers the framework, while the Ethics and Anti-Corruption Commission enforces related regulations.
The system is intended to strengthen openness in public institutions, promote proper conduct and prevent situations that could lead to conflicts of interest.
The Controller of Budget report shows that government agencies also spent billions of shillings on several other goods and services during the financial year.
Insurance took up Sh30.15 billion, while Sh11 billion was used to pay rent and rates for non-residential buildings. Specialised materials and supplies accounted for another Sh17.47 billion, while Sh5.07 billion went towards fuel, oil and lubricants.
These expenditures form part of the wider government spending that has been targeted under the fiscal consolidation programme.
The government says the programme is aimed at making public spending more efficient and reducing allocations to areas that are not considered essential.
One of the measures being implemented is an end-to-end e-procurement system "to maximise value for money and increase transparency in procurement."
Other areas listed for tighter control include official travel, printing and advertising, rent and rates for non-residential buildings, training, legal fees, insurance and the upkeep of government vehicles and other assets.
The latest figures come more than two years after President Ruto announced a fresh round of austerity measures following widespread protests over taxation and government spending.
On June 26, 2024, after the Finance Bill 2024 was withdrawn following widespread anti-tax protests, the President ordered immediate reductions in hospitality and operational spending.
He directed that operational expenditure within the Presidency be cut, including the removal of confidential votes and reductions in spending on travel, hospitality, vehicle purchases and renovations.
"I am directing for immediate further austerity measures to reduce expenditure, starting with the Office of the President, the entire presidency and extending to the entire executive arm of government," President Ruto said at State House.
He further urged Parliament, the Judiciary and county governments to introduce similar reductions, saying the move was necessary "to ensure the government lives within its means" in response to public demands.
The measures followed earlier steps announced by the National Treasury in December 2023, which included cuts to official travel allowances and a ban on non-essential lunch, tea and water for civil servants.
The President also ordered the removal of government allocations for the offices of the First Lady and the spouses of the Deputy President and Prime Cabinet Secretary in June 2024.
The two offices had been allocated a combined Sh1.3 billion, comprising Sh696.6 million for the Office of the First Lady and Sh557.6 million for the Office of the Spouse of the Deputy President.
Those offices have not received government funding since then, making the decision one of the few austerity measures announced by the President that has been put into effect.
However, the rise in hospitality expenditure to Sh11.72 billion in the 2025/26 financial year points to continued pressure on the government’s efforts to contain spending and achieve its fiscal consolidation targets.