The National Treasury has acknowledged a Ksh73 billion error in the Budget Policy Statement (BPS) submitted to Parliament, prompting a request for amendments to align the figures with the fiscal framework.
In a letter dated February 25, 2025, Treasury Cabinet Secretary John Mbadi formally requested the National Assembly to approve a reduction in ministerial expenditure under the State Department for Medical Services. The discrepancy arose due to an erroneous inclusion of funds allocated to the Social Health Insurance Fund (SHIF) in ministerial spending.
“However, the said amount is not included in the fiscal framework, thus causing the difference between Ksh4.336 trillion and Ksh4.263 trillion,” the letter explained.
MPs Flag Budget Discrepancy
The National Assembly Committee on Finance and National Planning first raised concerns over the inconsistency last month during a meeting with Treasury officials. Lawmakers noted conflicting expenditure figures for the 2025/26 budget, with some documents listing Ksh4.336 trillion and others showing Ksh4.263 trillion.
In response, Treasury officials clarified that the error was due to an oversight in budget allocation. The adjustment aims to align ministerial expenditure with the overall fiscal framework.
Correction Measures
Treasury has now requested Parliament’s approval to reduce ministerial spending to reflect the accurate figures. Following the correction, the total ministerial expenditure is expected to stand at Ksh4.2 trillion.
National Assembly Majority Leader Kimani Ichung’wah commended MPs for identifying the discrepancy, emphasizing the importance of accuracy in budget planning.
“I hope this letter now clarifies the issue because we don’t want another computer error,” Ichung’wah remarked.
The Treasury’s move to rectify the error highlights the critical role of parliamentary oversight in ensuring financial transparency. The adjustments, once approved, will align the BPS with Kenya’s overall fiscal strategy for the 2025/26 financial year.
