NAIROBI, Kenya, Jun 10 — Government spending undertaken outside approved budget provisions surged nearly sixfold in the first nine months of the 2025/26 financial year, reaching Sh276.99 billion by March 31, according to the Controller of Budget (CoB).
The expenditure was incurred under Article 223 of the Constitution, which allows the national government to withdraw funds from the Consolidated Fund for urgent and unforeseen needs before obtaining parliamentary approval.
The CoB report shows the amount was significantly higher than the Sh48.88 billion recorded during the corresponding period of the 2024/25 financial year.
“The continued increase in Article 223 expenditures raises concerns regarding adherence to budget credibility and the principle of prior parliamentary approval,” the report notes.
The Controller of Budget cautioned that while Article 223 provides flexibility in emergencies, excessive reliance on the provision could weaken fiscal discipline and undermine the integrity of the budget-making process.
The surge comes against a backdrop of mounting fiscal pressures, including a public debt stock which rose to Sh12.82 trillion by March.
CoB reported a 9 per cent spike in public debt in the nine-month period, from Sh11.8 trillion recorded at the end of June 2025, equivalent to 69.9 per cent of Gross Domestic Product (GDP).
The report noted that the debt level exceeded Parliament’s recommended debt anchor of 55 per cent of GDP by 14.9 percentage points.
“The stock of public debt increased from Sh11.80 trillion as at June 30, 2025 to Sh12.82 trillion as at March 31, 2026, representing a growth of 9 per cent,” the report states.
Domestic debt accounted for the largest share of the increase, rising by 13 per cent from Sh6.22 trillion to Sh7.05 trillion, driven by increased issuance of Treasury bills and bonds.
External debt grew by 4 per cent to Sh5.77 trillion, reflecting additional external borrowing and exchange rate movements.
CoB highlighted rising debt-servicing obligations with repayments hitting Sh1.35 trillion during the nine-month period, accounting for the bulk of expenditure under the Consolidated Fund Services.
The report also highlighted persistent implementation challenges, including delays linked to the rollout of the Electronic Government Procurement system and a growing stock of pending bills across government entities.