(NAIROBI, KENYA) – Emergency government spending in Kenya reached KES 364.24 billion over the four year period ending June 2026, according to official data published by the Office of the Controller of Budget. The figure amounts to approximately $2.82 billion based on current exchange rates.
The disclosures reveal a sharp increase in withdrawals made under Article 223 of the Constitution, a provision intended for urgent and unforeseeable expenditure. Spending through this window more than tripled in the 2025/26 financial year, rising to KES 209.37 billion from KES 66.5 billion the previous year. The amount represents about $1.62 billion / £1.29 billion / €1.47 billion.
Data shows that the administration spent KES 69.2 billion through the emergency window in its first full financial year and KES 19.1 billion in the year ended June 2024. Total requests for emergency withdrawals across the four years stood at KES 522.79 billion, of which KES 158.6 billion in requests were rejected by the Controller of Budget.
Controller of Budget Margaret Nyakang’o has raised concern over the rising use of the mechanism, stating that some approvals covered routine office operations that had simply not been allocated funds during the normal budget process. She has called for a review of the legal framework governing Article 223 to protect fiscal integrity and budget credibility.
Auditor General Nancy Gathungu has separately reported that certain ministries and agencies classified predictable costs such as travel as emergencies. She noted that some projects funded through the window had stalled while others lacked proper documentation, creating risk of loss to taxpayers.
The largest single driver of emergency spending in the year to June 2026 was sovereign bond restructuring, which accounted for KES 82.88 billion. A further KES 58.1 billion went toward a buyback and accrued interest on a Eurobond. The Controller of Budget said the Treasury should demonstrate the fiscal benefit of the buyback and that such operations should be examined at the budget drafting stage.
Other items financed through Article 223 included KES 7 billion for Social Health Authority dues for teachers, KES 5 billion for subsidised fertiliser, and KES 4.09 billion for termination of a roads annuity contract. The Controller cited KES 3.9 billion that had appeared in the draft budget for hosting rights for the 2027 African Cup of Nations but was removed from the approved budget and later paid through the emergency window. A similar case occurred in the previous financial year when KES 1.68 billion was withdrawn for hosting rights for the African Nations Championship.
The National Treasury had sought approval for KES 281.46 billion under Article 223 in the 2025/26 financial year. The Controller declined to approve KES 72.09 billion of that amount. Rejected items included KES 2 billion for State House operations, KES 2.04 billion for a disaster recovery site at Konza Technopolis, and an upgrade of the Kenya Revenue Authority ICT system.
Treasury Cabinet Secretary John Mbadi, who previously chaired the Public Accounts Committee of the National Assembly, has accused past administrations of using the emergency window to fund corruption and pet projects. He said amendments to the Public Finance Management Act would be pursued to curb misuse.
The rise in emergency spending comes as the government had previously criticised the former administration over the use of Article 223. A KES 6.09 billion acquisition of a 60 percent stake in Telkom Kenya from a Mauritius based private equity firm was singled out for criticism by President William Ruto. That transaction remains the subject of litigation and was investigated by Parliament.