The National Treasury has admitted to a Ksh73 billion error in the Budget Policy Statement (BPS) submitted to Parliament, prompting the government to seek amendments to correct the figures.
In a letter dated February 25, 2025, the Treasury requested the National Assembly to approve a Ksh73 billion reduction in ministerial expenditure under the State Department for Medical Services.
Treasury Cabinet Secretary John Mbadi explained that the allocation for the Social Health Insurance Fund (SHIF) had been mistakenly included in ministerial spending but was not factored into the fiscal framework, creating a discrepancy in the reported figures.
“However, the said amount is not included in the fiscal framework, thus causing the difference between Ksh4.336 trillion and Ksh4.263 trillion,” the letter states.
MPs Flag Ksh73 Billion Discrepancy
The National Assembly Committee on Finance and National Planning first noticed the budget discrepancy last month during a meeting with Treasury officials.
Lawmakers raised concerns after discovering two conflicting expenditure figures for the 2025/26 budget in Treasury documents—one showing Ksh4.263 trillion and another listing Ksh4.336 trillion.
Treasury Moves to Fix Budget Error
In response to concerns raised by MPs, Treasury has requested adjustments to align ministerial expenditure with the fiscal framework.
CS John Mbadi clarified that after the correction, the total ministerial expenditure will stand at Ksh4.2 trillion.
National Assembly Majority Leader Kimani Ichung’wah commended lawmakers for catching the budget inconsistency, stressing the need for accuracy in financial planning.
“I hope this letter now clarifies the issue because we don’t want another computer error,” he remarked.
