National Treasury in a spot over Sh40 billion withdrawn and spent without MPs’ approval
The revelation has sparked fresh debate on the government’s budgetary practices, with MPs calling for stricter measures to prevent the misuse of public funds.
The National Treasury withdrew Sh40 billion from public coffers without prior approval from Parliament, sparking outrage among Members of Parliament who have termed it illegal and a violation of fiscal discipline.
During a tense session with the National Assembly’s Finance and National Planning Committee, Treasury Principal Secretary Chris Kiptoo admitted that various government agencies had sought over Sh900 billion for expenditure without parliamentary approval in the 2024/25 financial year.
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Out of this, National Treasury Cabinet Secretary John Mbadi authorised the release of Sh88.2 billion, with over Sh40 billion already spent.
MPs condemned the spending, terming it illegal and a threat to fiscal discipline.
Committee Chairman Kimani Kuria, vice-chairperson Benjamin Lang’at and members John Ariko and Joseph Makilap pressed the Treasury for accountability.
“Could you provide evidence that the approval of Parliament was sought before the expenditures of the amounts were made,” Kuria demanded.
Special circumstances
In response, the Treasury defended its actions, citing Article 223 of the Constitution, which allows the government to withdraw funds under special circumstances, such as emergencies, before seeking parliamentary approval within two months. If Parliament is not in session, approval must be sought within two weeks of its next sitting.
However, MPs argued that the article was being misused to bypass proper budgetary procedures.
Makilap criticised the Treasury, stating, “We are using Article 223 to run the budget of the country.”
Butula MP Joseph Oyula reminded the Treasury that it bears the responsibility of setting a precedent for fiscal discipline.
“You must budget adequately; otherwise, it will be difficult to control the other government agencies on the usage of public funds under Article 223,” he said.
Ariko also weighed in, cautioning that non-emergency items should not be funded under the constitutional provision.
“Some items that are not emergency in nature should not be appearing under Article 223 of the Constitution,” he said.
The revelation has sparked fresh debate on the government’s budgetary practices, with MPs calling for stricter measures to prevent the misuse of public funds.
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