Spending spree: How State House splashed Sh4.5 billion on handouts

State House used a startling amount of Sh50 million daily in the first quarter of the current financial year 2025/26, according to the latest Controller of Budget report on spending by the national government in the months of July, August and September.

Despite President William Ruto’s pledge to embark on austerity measures last year in a bid to reduce the ballooning wage bill and overborrowing, a report from the Controller of Budget indicates otherwise, revealing that State House spent Sh4.5 billion in three months.

This is in comparison to  State House spending Sh5.6 billion in the first nine months last year, with State House using Sh2.2 billion for salaries, Sh1 billion on domestic travel, Sh697.5 million on hospitality and Sh300.4 million on fuel and lubricants.

If State House continues on a similar trajectory, there is a possibility of Sh18 billion being spent by the President's official residence for both development and recurrent expenditure in the four quarters of the 2025/26 financial year.

During the period under review, schools complained about a lack of capitation, county governments faced cash crunches, lecturers went on strike demanding salaries, hospitals complained about a lack of essential drugs, and contractors decried pending bills. Critics also say the amount used by State House could fund three county governments.

In this year's budget, State House was allocated a total of Sh8.5 billion, meaning that it has already consumed more than half in the first three months. It will probably soon be urging Parliament to pass a supplementary budget once the funds are exhausted.

Last year, the President, in his efforts to quell the enraged Gen Z protests, who took to the streets and used social media platforms to demand accountability from the government, as well as to curb corruption, the wage bill and overborrowing, announced a raft of measures his administration was undertaking to address the issues raised by the youth.

Among the key measures Ruto promised to undertake were reducing the number of his advisors by 50 per cent, removing the budgetary allocation to the offices of the First Lady, the spouses of the Deputy President, and the Prime Cabinet Secretary, as well as removing the confidential budgets in various Executive offices, including his own, and reducing the budget for renovations across the government by 50 per cent.

“No state officer or public servant shall participate in public contributions/Harambees henceforth. The Attorney General is hereby directed to prepare and submit legislation to this effect and develop a mechanism for structured and transparent contributions for public, charitable and philanthropic purposes,” Ruto announced on 4 July last year.

Despite his announcement, the Controller of Budget’s review of the first three months of the 2025/26 financial year shows the exchequer is being stretched thin by debt repayments, pending bills and recurrent spending, leaving little for long-term public investment.

Of the Sh4.5 billion, Sh3.1 billion is listed as having been used for other expenses, meaning the sum could have been drawn from a confidential account in the first quarter of the financial year 2025/26.

Dr Nyakang’o, in the National Government Budget Review report, said that State House used Sh689.83 million for salaries, Sh292.7 million on domestic travel, Sh199.2 million on hospitality, and Sh98 million on fuel and lubricants.

She pointed out in the report that State House used Sh55.1 million for routine maintenance of motor vehicles, Sh3.43 million for foreign travel, Sh4.19 million for communication, supplies and services, while it used Sh25.69 million for utilities, supplies and services.

“State House used Sh98.5 million for fuel, oil and lubricants, Sh15.88 million for rentals of produced assets and Sh2.97 million for maintenance expenses – other assets for the three-month period under review,” said Dr Nyakang’o.

The report said State House used Sh146.5 million for foreign travel, Sh277.19 million for routine maintenance of motor vehicles, Sh109.4 million for insurance costs, Sh71 million for communication, supplies and services, and Sh353 million on other expenses.

“State House used Sh81 million for utilities, supplies and services, Sh91.4 million for rentals of produced assets, Sh32 million for specialised materials and supplies, and Sh59.4 million for maintenance expenses – other assets,” said Nyakang’o.

This year’s report indicates that the Executive Office of the President used Sh1.04 billion, of which Sh463.21 million went to salaries, Sh49.93 million to domestic travel, Sh8.34 million to foreign travel, and Sh275.1 million was listed as other expenses in the first quarter of the 2025/26 financial year.

The Office of the President used Sh31.56 million on rentals of produced assets, while Sh5.79 million went to communication, supplies and services, Sh40.41 million to hospitality, and Sh12.35 million to fuel, oil and lubricants.

“The Executive Office of the President used Sh1.01 million on office and general supplies and services, while Sh620,000 went to printing and advertising, and Sh620,000 went to acquisition of non-financial assets,” said Dr Nyakang’o.

While the Executive Office of the President used Sh3 billion, with Sh1.2 billion going to salaries, Sh145.3 million to domestic travel and Sh30.38 million to foreign travel during the first nine months of financial 2024/25, the Office of the President also used Sh899.8 million on other expenses, Sh222.37 million on rentals of produced assets, Sh16 million on communication, supplies and services, and Sh16.9 million on utilities, supplies and services during the same period.

Nyakang’o said that Sh165.24 million went to hospitality, Sh136.35 million to specialised materials and supplies, Sh42.88 million to fuel, oil and lubricants, Sh15.3 million to grants and other transfers, and Sh12.89 million to social security benefits.

“The Executive Office of the President used Sh39.85 million on office and general supplies and services, while Sh8.54 million went to printing and advertising, and Sh26.7 million went to acquisition of non-financial assets,” said Nyakang’o.

Last year’s report, released in June, however, showed that the austerity measures were still a challenge, revealing that domestic travel consumed Sh12.33 billion within the first nine months of the financial year 2023/24, while foreign travel totalled Sh5.85 billion.

Controller of Budget Margaret Nyakang’o singled out State House, the Ministry of Foreign Affairs, the Senate, the National Assembly and the Judiciary as the big spenders on local and foreign travel within the government.

In contrast, under former President Uhuru Kenyatta’s regime, for the first three months of FY 2021/22, travel expenditure was Sh4.45 billion, recording growth compared to Sh2.67 billion recorded in FY 2020/21.

“This comprised domestic travel of Sh2.72 billion and Sh1.74 billion on foreign travel. Expenditure on rentals and rates – non-residential buildings was Sh1.53 billion, while hospitality was Sh837.97 million,” a report covering July to September 2021 reads.

“Analysis of MDAs’ development expenditure by budget items shows that the highest spending by category was on capital transfers to SAGAs at Sh64.52 billion, representing 57.5 per cent of the gross development expenditure. The second highest spending category was refurbishment of buildings and infrastructure at Sh5.99 billion, representing 5.3 per cent of the gross development expenditure,” the report read.