National Treasury officials fail to explain Sh73 billion budget gap
One document puts the total budget at Sh4.263 trillion, while another states it as Sh4.336 trillion, creating a Sh73 billion gap that officials failed to explain.
A Sh73 billion discrepancy in budget figures presented by the National Treasury for the Financial Year 2025-2026 has raised concerns in Parliament, with lawmakers demanding clarity on the correct expenditure figures.
The National Assembly's Finance and National Planning Committee flagged conflicting numbers in the Treasury's Budget Policy Statement (BPS).
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One document puts the total budget at Sh4.263 trillion, while another states it as Sh4.336 trillion, creating a Sh73 billion gap that officials failed to explain.
Committee Chairman Kimani Kuria questioned the conflicting figures, pressing Treasury officials for an explanation.
"I have noted that there is a variance in the Budget Policy Statement from the Treasury. Which is which?" he asked.
However, Director-General of Accounting Services Benard Ndung'u, who led the Treasury team, did not provide an immediate answer. Instead, he asked for time to submit a harmonized document. "Mr Chairman, we will submit a document with the correct figures," Ndung'u said.
Kuria dismissed the response, insisting that such a mistake was unacceptable. "You cannot have different figures for the same budget. It cannot just happen," he said. "The Sh73 billion is way material that we should not just ignore. We need one figure."
Top Treasury officials absent
By the time lawmakers flagged the inconsistency, Treasury Principal Secretary Chris Kiptoo had already left the committee session.
He excused himself, saying he was bereaved and needed at Lee Funeral Home.
"Mr Chairman, I'm leaving you with a team of competent officials who are capable of tackling any question that may come up," Kiptoo told the committee before exiting.
The committee has now summoned Treasury Cabinet Secretary John Mbadi and PS Kiptoo to appear before them next Tuesday to provide answers.
The discrepancy has drawn comparisons to past budget irregularities, including the infamous 2008 "computer error" under then-Finance Minister Uhuru Kenyatta when MPs uncovered an inflated budget.
In 2023, Controller of Budget Margaret Nyakang'o also exposed how Treasury officials had tripled her salary allocation, a move she said could have cost taxpayers Sh1 billion annually.
During the Thursday session, Karachuonyo MP Adipo Okuome raised concerns about the government's taxation policies, saying Kenyans were struggling under a heavy tax burden.
"I see you want to broaden the tax base, but I think you should be thinking of giving people a tax relief. You are overtaxing people," Okuome said.
"Nowadays, when you go to hotels and sit, no people are coming to eat because they don't have money," he added.
Before leaving the session, PS Kiptoo assured lawmakers that economic growth would improve, projecting a 5.3 per cent growth rate in 2025 and 2026.
The MP defended the government's tax policies, saying they aim to expand revenue collection while reducing public debt.
The Treasury is expected to address the Sh73 billion variance when its top officials appear before the committee next week.
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