Several government offices have been left unable to start key development projects after the National Treasury delayed the release of Sh6.4 billion for the 2025/26 financial year.
The freeze in funding is affecting critical sectors, including energy, social welfare, and oversight agencies, slowing down both planned initiatives and ongoing programmes.
Treasury records indicate that by the end of November 2025, seven state offices and departments had not received any portion of their combined Sh6.4 billion development budget.
The impacted institutions include the offices of the Deputy President, Auditor General, Director of Public Prosecutions, Ethics and Anti-Corruption Commission (EACC), and the State Departments for Petroleum, Children’s Services, and Special Programmes.
The Deputy President’s office, which had set aside Sh100 million for coffee sector projects and efforts to curb illicit alcohol and substance abuse, has not accessed the funds. Of the office’s total Sh3.07 billion budget, Sh2.97 billion is already allocated for salaries, travel, and other recurrent costs.
“In the fiscal year 2025/26 and the medium term, the primary outputs will encompass oversight and coordination of development partners’ funded projects to ensure alignment with and support for the implementation of the BETA framework, as well as facilitating government strategic initiatives in the agriculture sector along the BETA value chains, including coffee and tea, among others,” Treasury notes.
At the State Department for Special Programmes, Sh165.5 million meant to support 400,000 households with relief food and develop drought contingency plans remains unreleased, putting these interventions at risk.
The Auditor General’s office, with a Sh330 million development budget, has also not received funds for projects such as expanding regional offices and generating audit reports. The Treasury disclosure explains:
“In the financial year 2025/26 and the medium-term period, the office will continue to implement measures that will adhere to quality and timely audits in compliance with professional standards. This will be through the upgrade of the Audit Management System (AMS) to incorporate changes in audit standards.”
The office intends to establish additional regional offices and fully equip existing ones to ensure timely audit services. The Mombasa regional office block, for example, is scheduled to reach 28 per cent completion by June 2026.
Similarly, the Ethics and Anti-Corruption Commission, which has a Sh180 million development allocation, and the State Department for Children Services, with Sh244 million earmarked for development projects, remain unfunded.
The State Department for Petroleum, allocated Sh5.3 billion for the year, has yet to receive any money for its initiatives. Key projects include supplying 6kg LPG cylinders to 100,000 low-income households and providing clean cooking gas to 200 schools.
“During the medium-term period for the financial year 2025/26–2027/28, the State Department will prioritise initiatives aimed at enhancing the exploration, development, production, and commercialisation of oil and gas resources, thereby ensuring a reliable supply to support sustainable economic growth,” the documents read. Projects such as acquiring 80 per cent of land in the South Lokichar Oil Field and developing the Kenya-Tanzania natural gas pipeline are affected by the delays.
The funding freeze raises concerns over the government’s ability to implement key programmes on time, putting both social and economic initiatives under pressure.
