State House and the State Department for Social Protection had exhausted or nearly depleted their allocations for salaries and other recurrent expenses by the end of April, prompting the National Treasury to prepare a third supplementary budget for the 2024/25 financial year, an unprecedented move since the onset of the Covid-19 crisis.
Treasury records show that the Department of Social Protection had already spent Ksh 35.7 billion against its Ksh 33.3 billion budget, while State House had used up 98% of its Ksh 7.96 billion allocation.
This trend reflects growing strain on recurrent expenditure, with Treasury officials attributing the overspending to missed revenue targets following the withdrawal of the Finance Bill, 2024, and sluggish economic performance.
The tax revenue collected between July and April stood at Sh1.8 trillion, falling short of the revised Ksh 2.4 trillion target, further complicating budgetary planning.
As a result, the third mini-budget, expected in June, will likely increase allocations for entities like the State House and Social Protection, even as concerns mount over the crowding out of development spending by a ballooning public wage bill.
However, details about how the extra money will be used or why the budget was exceeded are still not clear, causing worry about how money is managed by the government.
Additionally, the World Bank is concerned about the eCitizen platform, stating that Sh144 million is missing.
This platform is run by a private company and is not registered under the Data Protection Act.
The World Bank has also suggested that Kenya should raise taxes on beer and cigarettes to increase revenue and reduce consumption.
Sources in the Treasury have confirmed the need for this budget adjustment to ensure the State House can keep running properly.
