Nyakang’o Flags Treasury Over Sh77bn Spent Outside Budget Law
NAIROBI, Kenya, Sep 3 — Controller of Budget Margaret Nyakang’o has faulted the National Treasury for breaching fiscal discipline after approving Sh77.48 Kenya breaking news | Kenya news today |..
✨ Key Highlights
Controller of Budget Margaret Nyakang’o has criticized Kenya’s National Treasury for misusing Article 223 of the Constitution, which led to an unauthorized spending of Sh77.48 billion outside the budget law during the last financial year.
- Sh66.54 billion of the extra spending was withdrawn directly from the Consolidated Fund for predictable obligations like pending bills and salaries.
- Controller of Budget Margaret Nyakang’o faulted the National Treasury for breaching fiscal discipline.
- Article 223, meant for emergencies (10 percent cap), was used for routine government programs such as road projects and salary arrears, indicating "potential lapses in the budget formulation process."
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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.
