Treasury withdrew Sh11 billion emergency funds to pay doctors, contractors
A report by the CoB covering the six months leading up to December 2024 reveals that Sh1.75 billion was withdrawn from the Consolidated Fund on December 20 to settle salary arrears owed to medical doctors.
The government withdrew Sh11 billion from the national emergency fund in December 2024 to prevent a doctors' strike and pay contractors amid financial struggles, according to Controller of Budget (CoB) Margaret Nyakang’o.
The funds were accessed under Article 223 of the Constitution, which allows the government to use money not allocated under the Appropriation Act in emergencies, with parliamentary approval required within two months.
A report by the CoB covering the six months leading up to December 2024 reveals that Sh1.75 billion was withdrawn from the Consolidated Fund on December 20 to settle salary arrears owed to medical doctors.
The arrears stemmed from the implementation of the 2017-2021 collective bargaining agreement (CBA).
The request for the funds was made by the State Department for Public Health and approved by Treasury Cabinet Secretary John Mbadi the same day, amid concerns that doctors might strike during the festive season.
In total, Nyakang’o approved Sh16.9 billion for expenditure under Article 223 during the six-month period. Among the other withdrawals was Sh8 billion on December 9, which was allocated to the State Department for Roads to pay pending bills and support urgent road projects.
The report notes that road agencies have accumulated some of the highest unpaid bills in the government, with Kenya National Highways Authority owing Sh89.9 billion and Kenya Rural Roads Authority Sh66.3 billion.
“In the first six months of the financial year 2024/2025, exchequer issues pursuant to Article 223 of the Constitution of Kenya amounted to Sh16.95 billion, comprising Sh12.8 billion for development expenditure and Sh4.15 billion for recurrent expenditure,” the report states.
Additionally, COB Nyakang’o authorized the spending of Sh354.4 million by the State Department for Broadcasting and Telecommunications in December to settle outstanding bills under the Government Advertising Agency.
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