By C, KNA
The Controller of Budget (CoB), Margaret Nyakang’o, has reported that the government collected Sh3.99 Trillion in revenues, during the 2024/25 financial year, amounting to 95 percent of the government’s adjusted revenue target.
The report, presented to the National Assembly Budget and Appropriation Committee in Mombasa, shows that tax revenues remained the largest source of income at Sh2.26 Trillion, accounting for 57 percent of receipts.
Domestic borrowing brought in Sh1.08 Trillion, while external loans and grants amounted to Sh481 billion.
The government’s expenditure during the period hit Sh4.03 Trillion, reflecting a 92 percent absorption rate, up from 88 percent the previous year.
Recurrent spending consumed Sh1.67 Trillion, development spending Sh546 billion, while debt servicing through the Consolidated Fund Services stood at Sh1.82 Trillion.
Despite the improved absorption, the CoB flagged several challenges including the continued accumulation of pending bills, which stood at Sh524.8 billion by June 2025.
State corporations owed the bulk at Sh404 billion, while ministries and agencies accounted for Sh121 billion.
The report also highlighted increased reliance on Article 223 of the Constitution, with the National Treasury approving Sh83.9 billion in budgeted spending.
“Much of this went to clearing pending bills, paying doctors’ salary arrears and funding security operations, which should have been provided for during budget formulation,” she said.
Nyakang’o urged the National Treasury to fast-track settlement of pending bills to ease cash flow pressures on businesses, improve planning to reduce reliance on Article 223 and strengthen monitoring of ministries to align expenditure with performance.
Furthermore, the report revealed underutilization of the Equalization Fund, with only 14 of 34 eligible counties benefiting, leaving Sh6.9 billion unspent.