The State House budget for the current financial year has doubled to Sh16.998 billion following additional mid-year allocations under an emergency clause that allows spending without the National Assembly’s approval.
According to the supplementary budget estimates I for the 2025/26 financial year presented to the National Assembly, the State House budget soared by Sh8.42 billion.
The mid-year additional allocations pushed State House’s annual spending past that of equivalent offices in developed nations such as the US (Sh10 billion), Germany (Sh7 billion), Portugal and (Sh2.6 billion), while nearly matching that of France (Sh17.5 billion) for a similar financial year.
Closer to home, Kenya’s State House spending was higher than that of Nigeria (Sh3.1 billion), South Africa (Sh7.8 billion), Algeria (Sh8.9 billion) and Tanzania (Sh1.7 billion).
This comes as Controller of Budget (CoB) Dr Margaret Nyakang’o raised alarm over the possibility of State House depleting its budget midstream the financial year. The financial year ends on June 31.
Documents submitted to the National Assembly by National Treasury Cabinet Secretary John Mbadi seeking the MPs’ post-facto approval of the request show that State House first sought Sh2 billion “to cater for other operating expenses,” which are not emergencies, on September 8, 2025.
State House, Nairobi
Photo credit: Dennis Onsongo | Nation Media Group
“Since the approval of the financial year 2025/26 budget, the National Treasury has granted additional funding requests and disbursements to Ministries, Departments, and Agencies in accordance with the constitution,” says CS Mbadi in documents presented to the National Assembly for regularisation of the expenditure.
Mr Mbadi added: “In this regard, please find attached a schedule of the additional expenditure approvals granted under Article 223 of the constitution for your necessary action.”
Article 223 of the constitution provides for additional funding within the national government in cases where the appropriated sums are not enough to run the length of the fiscal year or an emergency or a need which is unavoidable, like drought, floods, a pandemic for which no sums were allocated, has arisen.
The State House’s key role is to support the President in achieving his constitutional responsibilities.
The National Treasury request shows that the additional expenditure is on account of the enhancement of operations and maintenance at the State House.
In June 2025, the National Assembly appropriated Sh8.6 billion for State House, which included Sh7.7 billion in recurrent expenditures and Sh894.91 million in development.
However, the allocation shot to Sh16.998 billion by February this year, with Sh16.1 billion as recurrent expenditure, with development stagnating at Sh894.91 million.
The document shows that Sh4.5 billion under Article 223 was sought in September 2025, barely three months into the 2025/26 financial year, after exhausting its allocation for the year.
The National Treasury would later approve and disburse Sh4.4 billion on diverse dates of 15/12/2025, 16/12/2025, 22/12/2025, 23/12/2025, 1/16/2026, and 11/02/2026.
The budget allocation to the State House in the financial year 2025/26, as approved by the National Assembly in June 2025, was Sh8.58 billion, increasing to Sh16.998 billion, compared to the cumulative Sh12.07 billion, Sh3 billion more than what had been allocated in the financial year 2024/25.
In the 2023/24 period, Sh7.3 billion was allocated, increasing the budget to Sh11.33 billion. The allocation in 2022/23 was Sh4.37 billion before shooting to Sh9.15 billion in additional allocations.
Fiscal analysts at the Parliamentary Budget Office (PBO) warn that the request is an abuse of the constitution and borders on fiscal indiscipline by mandarins at the National Treasury, as it diminishes budget credibility.
State House budget for the current financial year has doubled to Sh16.998 billion, soared by Sh8.42 billion.
Photo credit: Nation Media Group
Dr Nyakang’o, in documents before parliament, warns that although State House recorded a strong performance, achieving an overall absorption rate of 55 percent, which is well above the first-quarter average of 25 percent, it runs the risk of depleting its budget midstream.
“Whereas this reflected efficient budget execution, it also presented a risk of budget depletion before the end of the financial year 2025/26, leading to budget non-credibility,” warns Dr Nyakang’o.
Article 223 of the constitution allows the national government to access additional funding during the budget implementation by spending money that has not been appropriated by the National Assembly.
However, this only applies if the amount appropriated by the National Assembly for any purpose is insufficient or a need for unbudgeted expenditure arises for which no amount has been appropriated, or money has been withdrawn from the Contingencies Fund (CF).
Although Article 223 (3) states that the approval of the National Assembly under “this Article shall be sought within two months after the first withdrawal of the money,” from the Consolidated Fund (CF), more than three months after the first withdrawal, no approval has been sought.
PBO analyst who requested anonymity warned that “continued abuse of Article 223 of the constitution runs the risk of discrediting the budget.”
“We need an amendment to the Public Finance Management Act to provide clarity on expenditures under Article 223 of the constitution. As currently structured, the National Treasury will continue to abuse the constitution, and we may end with a discredited budget regime,” says the PBO official.
State House affairs include the coordination of State House functions and the administration of statutory benefits for the retired presidents and deputy presidents.
Within the first quarter of the current financial year, the coordination of State House functions had incurred Sh4.7 billion, which includes Sh4.45 billion in recurrent budget and Sh235.10 million on development.
Under the administration of statutory benefits for the retired presidents and deputy presidents, Sh452.6 million was allocated, with an expenditure of Sh50.59 million already incurred.
