Article 223 spending jumps sixfold to Sh277bn as CoB warns over budget discipline
Government spending under Article 223 of the Constitution surged to Sh276.99 billion by March 2026, nearly six times higher than a year earlier, with the Controller of Budget warning over fiscal discipline and budget credibility...
✨ Key Highlights
Government spending outside approved budgets has surged dramatically, reaching Sh276.99 billion in the first nine months of the 2025/26 financial year. This represents a nearly sixfold increase compared to the previous year, raising concerns about fiscal discipline.
- Spending under Article 223 of the Constitution jumped to Sh276.99 billion by March 31, 2026.
- The Controller of Budget (CoB) issued a warning over the significant increase in expenditure.
- This surge occurs amidst mounting fiscal pressures, including a public debt that reached Sh12.82 trillion by March 2026.
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CS Mbadi Defends Ksh4.8 Trillion Budget Amid Economic Pressures - June 2026
Treasury Cabinet Secretary John Mbadi defended the challenging 2026/27 budget of Ksh4.8 trillion, citing significant economic pressures including external shocks, underperformance in revenue collection, and rising inflation. He stated there would be no surprises as most revenue-raising proposals had already undergone public participation. CS Mbadi announced that ongoing KRA reforms are expected to boost tax collections without higher tax rates. He explained the government plans to address a Sh1.1 trillion deficit through revenue enhancement and expenditure rationalization. However, government spending outside approved budgets has jumped nearly sixfold to Sh276.99 billion in the first nine months of 2025/26, raising concerns about fiscal discipline. Kenyan government agencies have accumulated Sh465.87 billion in unpaid bills as of March 2026, amidst surging public debt of Sh12.82 trillion. Meanwhile, Peter Mbae is urging MPs to amend or reject the budget, blaming excessive government spending for increased borrowing.
