Kenya’s State House spent a startling KSh50 million daily in the first quarter of the 2025/26 financial year, the latest Controller of Budget report reveals.
The report on national government expenditure for July, August and September shows State House used KSh4.5 billion in three months despite President William Ruto pledges for austerity.
High spending despite austerity drive
Controller of Budget Margaret Nyakang’o quarterly review details recurrent spending at State House reaching KSh4.32 billion, exceeding the approved quarterly target of KSh1.92 billion by 125%.
This made the presidency one of the leading entities in breaching budgetary limits. The KSh4.5 billion total translates to an average daily expenditure of KSh50 million over the 90-day period – a figure that could fund essential services for thousands of Kenyans.
Significant sums went to hospitality, travel and maintenance. State House contributed heavily to national government travel costs of KSh4.97 billion in the quarter, despite directives to curb non-essential trips.
Vehicle maintenance, renovations and operational costs further drove up the tally. Nyakang’o office, which oversees fiscal discipline, flagged State House alongside the Office of the Deputy President and National Intelligence Service among 18 agencies that overspent.
Austerity measures announced in 2024
President Ruto government introduced sweeping austerity measures in July 2024 after violent protests forced withdrawal of the controversial Finance Bill.
The steps included a 50% cut in travel budgets across ministries and agencies, reduction in the number of advisers by half, suspension of new vehicle purchases for one year and dissolution of 47 state corporations.
These measures aimed to ease Kenya ballooning public wage bill and reduce borrowing. Protesters had demanded relief from high living costs and opposed new taxes on essentials.
More than a year later, the first-quarter spending at State House suggests the austerity drive has not been fully implemented at the highest level.
National government recurrent expenditure fell 7.6% to KSh746 billion compared with the same period last year, but key executive offices exceeded limits.
Breakdown of State House spending
The 2025/26 annual allocation for State House stands at KSh8.58 billion – KSh7.68 billion recurrent and KSh894 million for development projects.
By the end of September, more than half the recurrent budget had already been utilised, raising concerns about potential shortfalls later in the year.
Wages and allowances remain a major component. Hospitality services, including catering and events, recorded heavy outlays. The government as a whole spends an estimated KSh17.2 million daily on tea, snacks and entertainment, with State House a significant contributor.
Foreign travel by the presidency totalled KSh189 million in the quarter – lower than previous periods but still substantial given the austerity directives.
Handouts and donations emerged as another large category, with KSh4.5 billion disbursed. Critics often describe these as opaque and open to political misuse.
Security enhancements, building maintenance and other operational needs rounded out the expenditures, many exceeding initial estimates.
Comparison with previous years
State House spending patterns show consistent overruns. In the financial year ending June 2025, actual expenditure reached KSh11.6 billion – nearly three times the original allocation and a 170% overshoot.
During Uhuru Kenyatta final years in office, annual State House spending ranged between KSh7 billion and KSh10 billion, with smaller variances.
Borrowing under Ruto administration in the first 17 months reached 37.8% of revenues, higher than the 31.7% recorded in a similar period under Kenyatta.
Public and expert reactions
Kenyans voiced outrage on social media, with many calling the daily KSh50 million figure excessive amid widespread economic hardship.
Civil society organisations, including the Kenya Human Rights Commission, criticised the spending as undermining efforts to control the wage bill and public debt.
Economists warn that continued fiscal indiscipline risks pushing Kenya debt-to-GDP ratio higher, though targeted reforms could bring it down to 44% by 2035.
Lawmakers described the broader 2025/26 budget as people-focused but stressed the need for stricter enforcement of austerity rules.
Nyakang’o office blocked an additional KSh43.3 billion in unauthorised travel requests to enforce spending limits.
Broader economic implications
Kenya public debt now exceeds KSh10 trillion. First-quarter debt repayments stood at KSh507.98 billion, consuming 27% of total expenditure.
Together with wages, debt service and salaries account for 68% of revenues – breaching legal caps and leaving limited room for health, education and infrastructure.
Economic growth is projected at 5.3% for 2025 and 2026, with the fiscal deficit targeted to fall to 4.8% of GDP.
State corporations owe suppliers more than KSh525 billion, including unpaid salaries, adding further pressure.
President Ruto vision of a KSh5 trillion economy depends on restoring fiscal discipline. High spending at State House risks eroding public confidence at a time when ordinary Kenyans face rising costs and stagnant wages.
The KSh50 million daily outlay serves as a stark reminder that austerity promises must translate into action across all levels of government.
