The National Treasury is in the spotlight after MPs accused it of facilitating Sh40 billion withdrawals from public coffers without approval of the National Assembly.
The National Treasury is in the spotlight after MPs accused it of facilitating Sh40 billion withdrawals from public coffers without approval of the National Assembly.
National Treasury Principal Secretary Chris Kiptoo had a difficult time during a session with the Finance and National Planning Committee of the National Assembly on Friday following his revelations that over Sh900 billion had been sought for expenditure by various government agencies without the MP's nod in the current financial year 2024/25.
Out of the Sh900 billion irregular withdrawal requests, National Treasury Cabinet Secretary John Mbadi approved Sh88.2 billion to various government Ministries, Departments, and Agencies (MDAS), with over Sh40 billion already spent—a position MPs termed illegal and an enabler of corruption and fiscal indiscipline.
National Treasury Principal Secretary Chris Kiptoo when he appeared before the National Assembly Committee on Finance & National Planning at the Bunge Tower Nairobi on March 6, 2025.
The CS’ approval included Sh3.14 billion for the National Treasury. Finance Committee members led by chairman Kimani Kuria and vice chairperson Benjamin Lang’at, John Ariko, and Joseph Makilap criticised the irregular cash withdrawals.
“Could you provide evidence that the approval of Parliament was sought before the expenditures of the amounts were made,” Mr Kuria said in a challenge to Dr Kiptoo.
The Treasury claimed that the money was spent under Article 223 of the Constitution, which allows the government to use money from the Contingencies Fund that has not been appropriated for any purpose under the Appropriation Act is insufficient or a need has arisen for expenditure for a purpose for which no amount has been appropriated by that Act.
Pandemic
Approval of Parliament for any spending is required within two months after the first withdrawal of the funds.
If Parliament is not sitting at the time or is sitting but adjourns before approval has been sought, a nod shall be sought within two weeks after it next sits.
The need for supplementary budgets was meant to address unforeseeable happenings- the natural phenomena- drought, floods or a pandemic among others but the situation has since changed.
“We are using Article 223 to run the budget of the country,” Mr Makilap said even as the Butula MP Joseph Oyula told the PS that the National Treasury has the responsibility to lead fiscal discipline by example.
National Assembly Committee on Finance and National Planning Chairperson Kuria Kimani.
“You must budget adequately otherwise it will be difficult to control the other government agencies on the usage of public funds under Article 223,” said Mr Oyula.
Mr Ariko told the PS that “some items that are not emergency in nature should not be appearing under Article 223 of the constitution.”
The National Treasury is also seeking the approval of its extra Sh3.14 billion for upgrading, integration of pension management system, capacity strengthening project, security systems CCTV and scanners, and a telephone system.
There is also the implementation of e-procurement systems by the government.
The National Assembly’s Budget and Appropriations Committee (BAC) in its report on the supplementary budget II of 2023/24, questioned some of the government’s expenditures noting that they do not merit the requirements of Article 223 of the constitution.
“The deferment of projects due to funding constraints not only leads to higher costs in the long run but also risks cost overruns as material and labour prices tend to escalate during prolonged delays,” the BAC report has stated.
However, sub-Article 5 of this Article lacks the requisite safeguards specifically the limit, against abuse of public funds appropriated under the supplementary budget.
The Sub-Article states; “in any particular financial year, the national government may not spend under this Article more than 10 percent of the sum appropriated by Parliament for that financial year unless, in special circumstances, parliament has approved a higher percentage.”
