A fresh battle over government spending has emerged after Controller of Budget Margaret Nyakang’o declined to approve expenditure plans worth Sh70 billion that ministries and state departments sought to process under emergency provisions, exposing concerns over the growing use of funds outside the approved budget framework.
The rejected spending requests were made between July 1, 2025, and March 31, 2026, and covered both recurrent and development programmes across several government agencies.
Records show ministries and departments sought approval to spend Sh276.7 billion under the emergency clause. However, only Sh206.8 billion was cleared, leaving Sh70 billion without approval.
Of the amount rejected, Sh22.6 billion relates to recurrent expenditure while Sh47.3 billion was earmarked for development projects. The funds had been requested under a constitutional provision that allows government spending before Parliament grants approval.
The decision is likely to place several accounting officers under scrutiny after some of the expenditure was incurred without receiving the necessary authorization from the Controller of Budget.
Among the expenditures that failed to secure approval is Sh3.6 billion intended to support the expanded registration of national identity cards and birth certificates.
Another Sh3.9 billion withdrawn in January for the implementation of Technical and Vocational Education and Training projects is yet to receive the Controller of Budget’s approval.
Nyakang’o has also not approved an additional Sh1 billion that had been released by the National Treasury to the National Intelligence Service in December 2025.
“The frequent use of this provision raises concerns about fiscal discipline, as it effectively allows spending outside the original budget,” Nyakang’o told the Star in April.
The report further shows that slightly more than half of the Sh268 million transferred to the Culture department for the Piny Luo Festival, Kenya Music Festival and the Kapkugo cultural fete remains unapproved.
The Water department is also affected after Nyakang’o declined to approve Sh600 million that had been withdrawn to finance climate resilience projects.
In addition, the Controller of Budget has withheld approval for Sh6.3 billion withdrawn by the Treasury to facilitate payments for the Dongo Kundu Special Economic Zone project.
Another Sh2 billion meant to settle outstanding invoices for the supply and commissioning of the Kenya Railways Rolling Stock Project remains pending approval.
Several Covid-19 related expenditures have also been flagged. These include Sh7.2 billion withdrawn for payment of Covid-19 vaccines and Sh896 million meant to clear pending bills incurred during the Covid-19 health emergency response programme.
The Controller of Budget has also not approved Sh3.5 billion intended to settle outstanding obligations under the Last Mile Connectivity project.
The agriculture sector is among those affected, with Sh3 billion set aside for sugar reforms still lacking approval. The money was intended to clear outstanding payments owed to farmers, staff salaries and salary arrears.
Meanwhile, the Youth Affairs department is grappling with an unapproved expenditure of Sh390 million that was used to facilitate celebrations marking International Youth Day and National Youth Day Week.
The funds were also allocated to the development of the Youth Development Index and implementation of the WHOZ’S NEXT Talent Search Programme, which focuses on identifying, nurturing and monetising talent among young people.
The Roads department also has several expenditures awaiting approval. Among them is Sh5 billion that had been earmarked for the Nairobi Intelligent Transport System.
Further, Sh10.5 billion withdrawn by the Treasury for payments to a foreign development bank remains unapproved.
The report indicates that a total of Sh19 billion already spent under the emergency provision had not received approval.
Nyakang’o has also declined to approve Sh2 billion used for the acquisition of a disaster recovery site at Konza Technopolis and the upgrading of Kenya Revenue Authority ICT and core systems.
The latest revelations shine a spotlight on the continued use of emergency spending provisions by government agencies, with the Controller of Budget warning that frequent reliance on the clause risks weakening financial discipline and undermining the integrity of the budget process.