The National Treasury has admitted to a staggering Ksh73 billion error in the Budget Policy Statement (BPS) submitted to Parliament, triggering urgent calls for amendments to rectify the figures.
In a letter dated February 25, 2025, Treasury requested the National Assembly to approve a Ksh73 billion reduction in ministerial spending under the State Department for Medical Services after discovering the mistake.
How the Ksh73 Billion Error Happened
Treasury CS John Mbadi explained that funds meant for the Social Health Insurance Fund (SHIF) were mistakenly included in ministerial allocations without being factored into the fiscal framework—leading to conflicting budget figures.
“The said amount is not included in the fiscal framework, thus causing the difference between Ksh4.336 trillion and Ksh4.263 trillion,” the letter stated.
MPs Raise the Alarm on Budget Discrepancy
The National Assembly Committee on Finance and National Planning first flagged the inconsistency last month after spotting two contradictory expenditure figures for the 2025/26 budget—one indicating Ksh4.263 trillion and another showing Ksh4.336 trillion.
Lawmakers were quick to question the gap, prompting Treasury to take action.
Treasury Rushes to Correct the Figures
Following pressure from MPs, Treasury has now requested amendments to align the ministerial expenditure with the official fiscal framework. CS Mbadi assured lawmakers that once corrected, the total ministerial expenditure would stand at Ksh4.2 trillion.
Leaders Demand Accountability
National Assembly Majority Leader Kimani Ichung’wah praised MPs for catching the error, emphasizing the importance of financial accuracy.
“I hope this letter now clarifies the issue because we don’t want another ‘computer error’,” he remarked, hinting at past financial blunders that have rocked the government.
With the Treasury scrambling to fix the numbers, the spotlight is now on Parliament to ensure greater scrutiny and accountability in budget planning. Will this be the last such mistake, or just another chapter in Kenya’s ongoing financial saga?
