Kenya government fiscal and expenditure concerns

Kenya is facing significant fiscal challenges regarding government expenditure and budget implementation. At the national level, the public sector wage bill is projected to reach Sh1.287 trillion for the 2025/26 financial year, an increase of Sh40 billion driven by hiring in the health, teaching, and security sectors and cost-of-living adjustments.

Concerns have been raised regarding non-essential spending, specifically domestic and foreign travel. National government travel costs rose by Sh5.2 billion, with State House identified as the highest spender. Similarly, at the devolved level, Kenya’s 47 county governments reported spending over Sh17 billion on local and international travel for purposes such as benchmarking and leadership training.

Financial mismanagement is also evident in unpaid obligations and unauthorized spending. County governments have accumulated Sh172 billion in unpaid bills to suppliers, with Nairobi County accounting for Sh86.90 billion of that total. Additionally, reports indicated that the Kenya National Highways Authority awarded contracts for projects that lacked corresponding budget allocations.