National Treasury Cabinet Secretary John Mbadi has tabled a request for an additional Sh18.9 billion in a third supplementary budget, aimed at cushioning the government against a massive revenue shortfall threatening the continuity of key public services.
The mini-budget, presented to the National Assembly on Wednesday, follows a record revenue deficit of Sh253 billion by April 2024. The shortfall includes Sh195.3 billion in ordinary revenue and Sh57.7 billion in Appropriation in Aid (AIA), after the government raised only Sh2.2 trillion against a target of Sh2.5 trillion.
Mbadi cited emerging expenditure pressures and critical funding needs such as salaries, security operations, and infrastructure development. “The execution of the FY 2024-25 budget has faced challenges regarding resource-raising and emerging expenditure pressure,” he said in documents presented to Parliament.
The request comes just two weeks before the 2025-26 financial year, where the Treasury projects to raise Sh3.3 trillion in revenue. Mbadi emphasized that the supplementary budget is crucial to ensure uninterrupted service delivery in sectors such as health, education, and water.
Among the notable allocations, the State Department for Social Protection and Senior Citizens will receive an extra Sh12.5 billion, raising its budget to Sh47.8 billion. The National Treasury itself gets Sh5.85 billion, while the Housing Department will benefit from a Sh7.787 billion boost due to development partner-supported projects.
Water and Sanitation gets an additional Sh3.1 billion, while the National Intelligence Service and the State Department for Lands will receive Sh3 billion and Sh1 billion respectively. The Information Communication docket sees a Sh2.2 billion increase, and Sports will receive an extra Sh1.69 billion.
The Office of the Deputy President gets Sh100 million, bringing its total to Sh3.118 billion. The National Police Service allocation increases by Sh944 million to Sh116.37 billion. Higher Education receives a Sh3.47 billion bump, bringing its budget to Sh139.7 billion.
Mbadi also noted that the Treasury incurred Sh34 billion under Article 223 of the Constitution since March, some of which exceeded the 10 percent threshold—now requiring special parliamentary approval.
