Budget Controller declined to approve Sh11.6 billion request from state agencies

Details have emerged that Controller of Budget (CoB), Margaret Nyakang’o declined to approve a request for Sh11.6 billion made by various ministries, departments, and agencies (MDAs) under Article 223 of the Constitution, which allows access to additional funding during the budget implementation period.

Instead, she approved Sh19.1 billion from the Sh30.7 billion requested by the MDAs.

In her latest report, Nyakang’o clarified that the approved amount represents 0.5 per cent of the revised net estimates and remains within the 10 per cent ceiling allowed under Article 223 of the Constitution.

“The approvals were regularised in Supplementary Budget I, dated November 23, 2023, and Supplementary Budget II, dated June 10, 2024,” she said.

Among the key recipients of the approved allocations was State House, which received Sh1.2 billion for priority expenses, including national security and state functions.

The National Treasury was granted Sh4 billion to address the budget deficit, settle pending bills related to revenue mobilization at the Kenya Revenue Authority (KRA), and fund donor-related activities.

The State Department for Development of Arid and Semi-Arid Lands (ASAL) was allocated Sh2 billion to support Kenya’s development response to the displaced persons' impact project and manage drought and humanitarian emergencies.

Notable allocations

Additionally, the State Department for Crop Development was given Sh500 million for the purchase of maize.

The State Department for Forestry received Sh2 billion for personnel emoluments, while the National Police Service was allocated Sh2 billion to cover medical and group insurance, though it had requested Sh4 billion.

Other notable allocations included Sh3 billion for the State Department for Crop Development to support the long rains and fertiliser subsidy programme, Sh600 million for the State Department for Cooperatives to manage excess milk mop-up, and Sh54.4 million for the State Department for Trade to support the operations of the Cabinet Secretary.

The State Department for Information Communications and Technology and Innovation received Sh221 million to support East Africa regional transport and trade facilitation, while the State Department for Energy was granted Sh78 million for the Eastern Electricity Highway project.

The State Department for Crop Development was also allocated Sh448.8 million for the mobilization and purchase of grain dryers.

Nyakang’o’s report further highlighted the government’s overdraft facility, which had increased to Sh9.63 billion, an 87 per cent rise compared to Sh5.16 billion in the 2022/23 financial year.

The growth was attributed to the gradual increase in the Central Bank of Kenya (CBK) rate and a rise in usage due to revenue shortfalls at the National Treasury.

The overdraft limit also rose from Sh80.05 billion in FY 2022/23 to Sh97.05 billion in FY 2023/24.

Managed by the CBK, the government’s overdraft is primarily used to finance shortfalls in domestic debt instruments, such as matured Treasury Bills, and to cover foreign debt payments.

Under constitutional guidelines, the overdraft is capped at five per cent of the most recently audited revenues.