Controller of Budget Margaret Nyakang’o has reported that the government collected Ksh3.99 trillion in revenues during the 2024/25 financial year, amounting to 95 per cent 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 Ksh2.26 Trillion, accounting for 57 per cent of receipts.

Domestic borrowing brought in Ksh1.08 trillion, while external loans and grants amounted to Ksh481 billion. The government’s expenditure during the period hit Ksh4.03 trillion, reflecting a 92 per cent absorption rate, up from 88 per cent the previous year.

Recurrent spending consumed Ksh1.67 trillion, development spending Ksh546 billion, while debt servicing through the Consolidated Fund Services stood at Ksh1.82 trillion.

Despite the improved absorption, the CoB flagged several challenges including the continued accumulation of pending bills, which stood at Ksh524.8 billion by June 2025. State corporations owed the bulk at Ksh404 billion, while ministries and agencies accounted for Ksh121 billion.

The report also highlighted increased reliance on Article 223 of the Constitution, with the National Treasury approving Ksh83.9 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 Ksh6.9 billion unspent.

• A Tell Media / KNA report / By Chari Suche