Nairobi, Kenya — The National Treasury is facing renewed scrutiny over the management and disbursement of public funds following audit findings that flagged billions of shillings in spending and transfers outside approved budget provisions.

An audit reported Sh1.35 billion in unapproved tax undertakings and Sh2.09 billion transferred outside approved budgets, raising questions about adherence to established budget controls.

Separately, the Controller of Budget has raised concerns about government expenditure incurred outside approved allocations. The FY 2025/26 budget implementation review reported Sh281.5 billion in additional spending without prior parliamentary appropriation, including Sh212.7 billion in recurrent expenditure and Sh68.8 billion in development expenditure.

The reports have renewed attention on the need for stronger budget planning, timely disbursement of funds and effective parliamentary oversight of public expenditure.

The Office of the Controller of Budget is mandated under Article 228 of the Constitution to oversee implementation of national and county government budgets and authorize withdrawals from public funds.

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Treasury Under Scrutiny as Audit and Budget Reports Flag Unbudgeted Spending