State House has blown through its entire recurrent allocation for the year in just seven months, highlighting growing concerns about budget management at the top level of government.
According to the latest Treasury figures, by the end of January 2026, State House had spent Sh10.4 billion, surpassing its full-year recurrent budget of Sh7.7 billion by Sh2.7 billion. This overspend represents a 35 percent breach of the annual ceiling, with five months remaining before the financial year ends on June 30.
Recurrent costs cover everyday operations such as allowances, official travel, accommodation, hospitality, and administrative support for running government offices. The pace of spending indicates an unusually high level of operational activity.
In January alone, the President’s residence recorded Sh1.3 billion in recurrent expenditure, averaging roughly Sh42.6 million per day.
The Treasury report does not provide a detailed breakdown of individual spending items, but the early budget depletion suggests that State House activities—including presidential travel, national events, and public engagements—drove costs sharply upward.
The Office of the Deputy President has also exceeded its annual recurrent allocation, overspending by Sh361.6 million. Together, the two offices are the only government entities to have breached their full-year ceilings so far.
The overspending comes at a time when the Treasury is pushing for tighter control of recurrent expenditures to support fiscal consolidation. Spending performance in the first half of the 2025-26 fiscal year exceeded expectations due to higher outlays on operations, maintenance, and debt service, while development projects and county disbursements were constrained.
To address the shortfall, the Treasury is preparing a supplementary budget for 2025-26, which will add Sh262.9 billion to the government’s spending plan. Overall, total expenditures are now expected to reach Sh4.532 trillion, up from the original Sh4.269 trillion in the approved budget.
Recurrent spending is projected to rise by Sh204.6 billion to Sh3.338 trillion, while development allocations will increase by Sh58.3 billion to Sh707.3 billion. Kenya’s recurrent expenses continue to be driven by wages, allowances, and operational costs, and the added spending will widen the fiscal deficit from Sh901 billion to Sh1.14 trillion, increasing it from 4.7 percent to six percent of GDP.
Treasury officials have repeatedly urged all ministries, departments, and agencies to respect quarterly spending ceilings, warning that exceeding budgets early undermines fiscal planning and forces emergency adjustments.
