Kenyan Institutions Face Scrutiny and Rulings Over Billions in Disputed Funds - September 2025

Controller of Budget Margaret Nyakang’o has criticized Kenya’s National Treasury for the unauthorized spending of Sh77.48 billion outside the budget law, citing a misuse of Article 223 of the Constitution. In a separate matter, the Metropolitan National Sacco Society has approved a forensic audit after a Sh15 billion loan book asset was revealed to be untraceable. This decision was made during the Sacco's 47th Annual General Meeting to address concerns about its financial stability and a negative equity position. Meanwhile, the High Court has ruled in favor of Pesapal Limited in a tax case, exempting the firm's commissions from Value-Added Tax (VAT). This judgment overturns a tax tribunal decision and will save Pesapal from paying the Kenya Revenue Authority (KRA) KSh 76.8 million in unpaid VAT and KSh 33.9 million in penalties and interest.