Development projects hit hard as counties, ministries struggle after Treasury withholds billions in approved funds
Gathungu said the persistent underfunding has disrupted public programmes, particularly development projects, which continue to be starved of resources due to delayed disbursements.
Counties, ministries and government departments have suffered repeated funding shortfalls after the National Treasury failed to release billions of shillings approved in the national budget, an analysis by Auditor General Nancy Gathungu has revealed.
Gathungu said the persistent underfunding has disrupted public programmes, particularly development projects, which continue to be starved of resources due to delayed disbursements.
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“Over the years, our audits indicate that ministries, departments, and agencies and county governments continue to be underfunded as Exchequer requests are not honoured as requested,” she said in a report to the National Assembly Select Committee on Budget and Appropriations on the annual estimates of revenue and expenditures for the fiscal year 2025-26.
“In particular, the development budget has been underfunded over the years, which has been attributed to delayed disbursement of donor funds and delayed counterpart funding from the government.”
The analysis shows that underfunding of counties and MDAs hit a five-year high in the 2023/24 fiscal year, with Sh467.8 billion out of the approved expenditure of Sh4.26 trillion not disbursed by the Treasury, an equivalent of 11 per cent.
In the 2022/23 fiscal year, Sh377.4 billion of the Sh3.62 trillion approved expenditure was withheld, representing 10 per cent, up from Sh256.4 billion of the Sh3.33 trillion in the previous year, or seven per cent.
Gathungu further notes that in the 2020/21 financial year, the Treasury did not release Sh151.6 billion out of the Sh2.95 trillion approved for release, about five per cent, while in the year before, Sh204 billion of the approved Sh2.95 trillion was not released.
“In addition, exchequer issues are released late to MDAs and county governments even as late as July after the year-end for the last three years,” Gathungu added, referring to the 2021-22, 2022-23, and 2023-24 financial years.
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