NAIROBI, KENYA - State House massively overspent its recurrent budget by 125% in the first quarter of the 2025/2026 financial year, according to a damning report from the Controller of Budget, Dr. Margaret Nyakang'o. The new data, released on Monday, November 24, 2025, shows the presidency spent KSh4.32 billion against a target of KSh1.92 billion between July 1 and September 30, 2025.

This significant budget breach by the highest office in the land starkly contrasts with the Kenya Kwanza administration's repeated commitments to fiscal consolidation and austerity. The over-expenditure is the sharpest deviation among all national government departments and occurs as the country grapples with a projected budget deficit of KSh901 billion for the current fiscal year.

The report, titled the National Government Budget Implementation Review Report, indicates that the overspending was not confined to State House. The Executive Office of the President, which includes the Deputy President's Office and the Office of the Prime Cabinet Secretary, collectively breached their budgets by KSh4.32 billion. The Office of Deputy President Kithure Kindiki spent KSh1.11 billion against a target of KSh743 million, while the Prime Cabinet Secretary's office also recorded substantial over-expenditure.

Widespread Overspending in Security Sector

A wider pattern of exceeding approved budgets emerged, particularly within the security sector. The National Police Service, the Department of Internal Security and National Administration, and the National Intelligence Service (NIS) collectively overshot their allocations by nearly KSh17 billion.

Specific figures from the Controller of Budget's report show:

• The National Police Service spent KSh36.94 billion against a target of KSh31.35 billion, an overspend of KSh5.59 billion.
• The Department of Internal Security and National Administration spent KSh13.99 billion, far exceeding its KSh7.97 billion ceiling.
• The National Intelligence Service used KSh17.96 billion against an allocation of KSh12.86 billion.

This pattern of expenditure by key government offices raises critical questions for Kenyan taxpayers, as such breaches often force the National Treasury to increase borrowing to balance its books, further exacerbating the country's public debt, which stood at KSh11.81 trillion as of June 2025.

Constitutional and Legal Implications

While Article 223 of the Constitution allows state offices to spend up to 10% above their approved allocations in unforeseen or emergency situations, the scale of the over-expenditure reported in the first quarter suggests a more systemic issue. The Public Finance Management Act requires the Treasury to table a supplementary budget in Parliament within two months if funds are withdrawn from the Consolidated Fund without prior approval.

The consistent overspending, especially during a period that saw a KSh90 billion revenue shortfall in the first quarter, points to significant fiscal pressure. Treasury officials have previously warned that unless revenue collection stabilizes, the government may face a deeper financing gap, potentially leading to increased domestic borrowing.

This is not the first time State House's expenditure has come under scrutiny. Reports from earlier in the year flagged significant spending on travel, hospitality, and renovations. In June 2025, a supplementary budget allocated an additional KSh3.7 billion to State House, primarily for domestic travel. The Controller of Budget's latest report will likely intensify the ongoing debate in Parliament and among the public regarding public debt, fiscal prudence, and the urgent need for stringent enforcement of budgetary controls across all levels of government.