At a time when Kenya is grappling with a severe revenue shortfall, a troubling pattern has emerged at the heart of government spending. New Treasury disclosures show that State House has already consumed almost its entire annual recurrent allocation halfway through the 2025/2026 financial year.
This frontloading of funds stands in stark contrast to the struggles facing key public institutions starved of cash. The figures raise urgent questions about priorities, fiscal discipline, and whether promises of austerity within the executive were ever meant to be honoured.
State House Annual Budget Reveals Uneven Spending Priorities
The National Treasury report published on December 19 paints a disturbing picture of how public funds are being released and spent. Between July and November, State House received Ksh7.6 billion, representing about 99.7 percent of its recurrent expenditure allocation for the entire 2025/2026 financial year. In effect, almost all funds meant to sustain State House operations for twelve months were disbursed within just six months.
This accelerated spending comes even while Treasury Cabinet Secretary John Mbadi has publicly acknowledged that the government is facing a massive revenue gap. According to the same report, the state projected to raise Ksh4.43 trillion in revenue but managed to collect only Ksh1.81 trillion during the period under review. That shortfall exposes a yawning deficit in government finances, one that should ordinarily trigger tighter controls on expenditure rather than rapid releases.
Tax revenue, which remains the backbone of government income, fell drastically short of expectations. Against a projected Ksh2.63 trillion, only Ksh909.8 billion was collected. Non tax revenue also underperformed, with actual receipts standing at Ksh42.2 billion compared to an estimated Ksh127.6 billion. These figures underscore the depth of the fiscal crisis confronting the country.
Yet amid this bleak revenue performance, State House appears to have been shielded from the belt tightening experienced elsewhere. The near full release of the State House Annual Budget within six months suggests a preferential approach that undermines broader calls for shared sacrifice across government.
Treasury Revenue Collapse Deepens Fiscal Strain
Treasury CS John Mbadi has repeatedly warned that revenue collections are falling far below projections, threatening the government’s ability to meet its obligations. During public engagements, including the Youth Parliament Session on the Budget and Finance Bill 2025, Mbadi admitted that the state is operating under intense fiscal pressure.
The numbers back up that admission. With less than half of projected revenue collected, the government faces difficult choices on which sectors to fund and which to delay. Typically, such conditions demand prioritisation of essential services like security, healthcare, education and devolution. Instead, the data shows a different reality.
While the State House Annual Budget was almost fully disbursed, other arms of government received far less. The statement of actual revenues against net exchequer issues shows glaring disparities that raise concerns about equity and accountability in budget execution.
Other Executive Offices Face Unequal Treatment
A closer look at allocations to other executive offices highlights the imbalance. The office of the President received only Ksh1.5 billion in the first six months, against an annual estimate of Ksh4.5 billion. That means it accessed just a third of its allocation during the same period that State House nearly exhausted its full budget.
The office of the Deputy President fared better, receiving Ksh2.6 billion out of an allocated Ksh2.9 billion within six months. Meanwhile, the office of the Prime Cabinet Secretary received only Ksh154 million, barely half of its recurrent allocation of Ksh363 million.
Beyond the executive offices, key institutions that underpin public safety and service delivery were allocated marginal funds. The National Police Service, the Ministry of Defence and devolved units recorded slower and more constrained disbursements. These are sectors that directly affect citizens’ daily lives, yet they continue to operate under financial strain.
Broken Austerity Promises Fuel Public Anger
The latest disclosures sharply contradict repeated pledges by President William Ruto to rein in government spending. Since taking office, the President has promised to cut unnecessary expenditure within his administration and redirect resources to productive sectors of the economy. Those assurances now ring hollow.
State House and the office of the President have in recent years faced sustained scrutiny over high spending patterns. The rapid exhaustion of the State House Annual Budget reinforces perceptions that austerity measures are selectively applied, leaving ordinary Kenyans to shoulder the burden through high taxation.
For workers and businesses already struggling with rising taxes and a tough economic climate, the revelations deepen frustration and mistrust. They point to a government that demands sacrifice from its citizens while insulating the highest office from the realities of a cash strapped economy.
