Controller of Budget flags State agencies over Sh160 billion opaque spending
Controller of Budget flags State agencies over Sh160 billion opaque spending
Over Sh160 billion was spent by government agencies without adequate breakdowns under the “other expenses” category in the financial year ended June 30, 2026, raising questions over how taxpayers’ money was used.
According to the Controller of Budget Margaret Nyakang’o, billions of shillings were recorded under the broad expenditure category, with agencies failing to provide enough details on what the money was used for.
Of the Sh160 billion, Sh104.84 billion was incurred under recurrent expenditure, while Sh55.01 billion was spent under development expenditure.
“Other expenses amounted to Sh104.85 billion, representing five per cent of the gross recurrent expenditure,” reads the report.
The State Department for Internal Security and National Administration, the National Police Service (NPS), the National Treasury and State House were among the biggest spenders under the broad budget line.
The State Department for Internal Security and National Administration spent Sh24.09 billion under “other expenses”. Of this amount, Sh21.53 billion was listed as expenditure on “security operations”, without details on the nature of the operations.
The NPS spent Sh16.02 billion under the same category, with Sh11.39 billion going to “security operations”. At the Treasury, Sh15.87 billion was classified as “other expenses”, including Sh12.62 billion spent on security operations.
The report does not explain how the Treasury was involved in security operations.
State House, meanwhile, spent Sh6.73 billion under confidential spending, adding to scrutiny over the cost of running the presidency.
State House has previously come under criticism over increased spending, with its budget rising from Sh12 billion in the previous financial year to Sh18 billion in the 2025-26 financial year.
The Executive Office of the President spent Sh1.91 billion under “other expenses”, including Sh1.26 billion on security operations. The Office of the Deputy President spent a further Sh1.78 billion under the same broad expenditure category.
Confidential expenditure is normally allowed in national budgeting to enable security agencies to spend on sensitive security or intelligence operations whose details should not be disclosed to the public.
However, the Auditor General has previously warned of possible abuse, with ministries that are not involved in security issues also incurring confidential expenditure.
The spending has often faced criticism because keeping details secret limits transparency and accountability in the management of public funds. This also makes it difficult for members of the public to know how government money is being used.
The report also flagged large amounts spent by other state institutions without adequate breakdowns, with the expenditure also classified as “other expenses”.
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The National Assembly spent Sh3.99 billion on constituency office expenses but did not provide details of how the money was spent.
The Independent Electoral and Boundaries Commission (IEBC) spent Sh2.97 billion on legal dues, arbitration and compensation without giving particulars of the expenditure.
The National Land Commission (NLC) spent another Sh1.99 billion on legal dues, arbitration and compensation, also under the broad expenditure classification.
The State Department for Basic Education spent Sh10.50 billion on school examinations and invigilation without providing a detailed breakdown of the expenditure.
Other state departments and agencies also recorded spending under the “other expenses” category.
The State Department for Immigration and Citizen Services spent Sh2.56 billion, while the State Department of Wildlife spent Sh1.07 billion.
The Judiciary spent Sh1.13 billion, the State Department of Special Programmes spent Sh666.92 million, while the State Department of Correctional Services spent Sh504.70 million.
The Controller of Budget also raised similar concerns over development spending. Under the development budget, “other expenses” amounted to Sh55.51 billion, representing seven per cent of total gross development expenditure.
The State Department for Immigration and Citizen Services accounted for a large share of the expenditure. Its spending included Sh6.8 billion for supplies for the production of identity card materials and Sh4.9 billion for contracted technical services.
The State Department for Technical, Vocational Education and Training also recorded Sh2.4 billion under the category for the acquisition of furniture and general equipment.
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