Controller of Budget Margaret Nyakang’o has declined to approve Sh11.6 billion requested under Article 223 of the Constitution by various ministries, departments, and agencies (MDAs) for funding different projects. In her latest report, Nyakang’o approved only Sh19.1 billion out of the Sh30.7 billion requested.
Nyakang’o clarified that the approved amount constituted 0.5 percent of the revised net estimates and adhered to the 10 percent ceiling specified in Article 223 of the Constitution, which permits MDAs to access additional funds during the budget implementation period. For the fiscal year 2023/24, she authorized Sh19.12 billion under this article.
She stated: “The approvals were regularized in Supplementary Budget I, dated November 23, 2023, and Supplementary Budget II, dated June 10, 2024.”
Among the allocations granted, State House received Sh1.2 billion for priority expenditures, including national security and state functions. The National Treasury was allocated Sh4 billion for addressing budget deficits, settling pending bills for revenue mobilization at the Kenya Revenue Authority (KRA), and supporting donor-related activities.
The State Department for Development of the Arid and Semi-Arid Lands (ASAL) was granted Sh2 billion to fund Kenya’s development response to the displaced Impact Project Loan, as well as to address drought and humanitarian emergencies.
The State Department for Crop Development received Sh500 million for maize purchases.
The State Department for Forestry was allocated Sh2 billion for personnel emoluments. The National Police Service received Sh2 billion for medical and group insurance covers, although it had requested Sh4 billion.
Additionally, the State Department for Crop Development was given Sh3 billion for the long rains and the fertilizer subsidy program, while the State Department for Cooperatives received Sh600 million for excess milk mop-up. The State Department for Trade got Sh54.4 million to support the operations of the cabinet secretary.
Regional Transport and Overdraft Facility
The State Department for Information Communications and Technology and Innovation received Sh221 million to support East Africa’s regional transport, trade, and development facilitation. Meanwhile, the State Department for Energy was allocated Sh78 million for the Eastern Electricity Highway project.
The State Department for Crop Development received Sh448.8 million for mobilization and the purchase of grain dryers.
Regarding the overdraft facility, the report indicates that the government was advanced Sh9.63 billion, representing an 87 percent increase compared to the Sh5.16 billion advanced in the fiscal year 2022/23.
This rise is attributed to the gradual adjustment of the Central Bank of Kenya (CBK) rate and increased reliance on the overdraft due to revenue shortfalls at the National Treasury. Additionally, the overdraft limit increased from Sh80.05 billion in FY 2022/23 to Sh97.05 billion in FY 2023/24.
The overdraft facility serves as a temporary funding source primarily used to cover shortfalls in domestic debt instruments, such as matured Treasury Bills, and foreign debt payments. The Central Bank of Kenya (CBK) oversees the government’s overdraft, which is capped at a maximum of 5 percent of the most recently audited revenues.
