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Originally published by Nation Businessbusiness
September 12, 2026
22h ago
Regulation 101: Inside the legal black hole where taxpayers’ billions vanish
What was intended to protect genuine state secrets has created a zone of financial darkness...
✨ Key Highlights
Taxpayers' billions are vanishing into a legal loophole created by Regulation 101 of the Public Finance Management (National Government) Regulations, 2015. This regulation allows for minimal accountability for confidential expenditures.
- Sh6.73 billion spent on confidential expenditure by State House.
- The Controller of Budget and Auditor-General face limitations in verifying the use of these funds.
- A mere certificate signed by the State House Comptroller and a Cabinet Secretary is sufficient for expenditure approval, creating a "zone of financial darkness."
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