NAIROBI, Kenya, Sep 3 — Controller of Budget Margaret Nyakang’o has faulted the National Treasury for breaching fiscal discipline after approving Sh77.48 billion in extra spending under Article 223 of the Constitution during the last financial year.
Her office disclosed that Sh66.54 billion of the amount was directly withdrawn from the Consolidated Fund to settle pending bills and salary arrears, despite these being predictable obligations that should have been included in the budget.
“Reliance on Article 223 to implement existing Government programmes or initiatives breaches Paragraph 40 (4) of the PFM Regulations, 2015,” the report stated.
“This suggests potential lapses in the budget formulation process and weaknesses in the budgeting cycle.”
Article 223 permits the government to spend beyond approved budgets in emergencies or unforeseen circumstances, capped at 10 per cent of total allocations.
However, Nyakang’o warned that the Treasury has turned it into a routine tool for funding recurrent government programmes such as road projects, medical doctors’ salary arrears, and higher education financing.
The watchdog also highlighted that overall budget implementation was strained by Sh524.8 billion in pending bills, ballooning debt service obligations, and heavy reliance on domestic borrowing, raising questions about the credibility of the fiscal framework.
Nyakang’o recommended stricter planning and alignment of expenditure with operational realities, urging the Treasury to reduce over-reliance on Article 223 and ensure only unforeseen emergencies are addressed under the clause.
