Kenya’s National Treasury has acknowledged a Sh73 billion discrepancy in the Budget Policy Statement (BPS) submitted to Parliament, prompting a request for amendments to align the figures with the fiscal framework.
In a letter dated February 25, Treasury sought National Assembly approval to reduce ministerial expenditure under the State Department for Medical Services by Sh73 billion. The error stemmed from the inclusion of funds earmarked for the Social Health Insurance Fund (SHIF) in ministerial spending, despite not being factored into the overall fiscal plan.
The discrepancy was first flagged by the National Assembly Committee on Finance and National Planning, which discovered conflicting expenditure figures in Treasury documents—one listing Sh4.263 trillion and another Sh4.336 trillion for the 2025/26 budget.
Treasury Cabinet Secretary John Mbadi clarified that after the correction, the total ministerial expenditure would stand at Sh4.2 trillion. National Assembly Majority Leader Kimani Ichung’wah praised MPs for identifying the inconsistency, stressing the importance of accuracy in budget planning.
The revelation has sparked concerns over government financial oversight, with legislators calling for stricter scrutiny to prevent similar errors in the future. The correction comes amid heightened monitoring of Kenya’s public finances as Parliament prepares to finalise the 2025-26 budget.
