Safina Party Leader Wanjigi raises red flag over $1.2 billion in secret ‘sovereign bond’ account and ‘clerical error’ in budget outturn discrepancies

National Treasury is facing mounting scrutiny following revelations of significant discrepancies in the March 2026 budget outturn, with critics dismissing the government’s explanation of a “clerical error” as insufficient and potentially misleading.

Speaking during a press briefing, Safina Party Leader Jimi Wanjigi faulted Treasury’s handling of the figures published in the Kenya Gazette and warned that the inconsistencies have eroded public confidence in the country’s financial reporting.

“The March 2026 budget outturn is ordinarily a simple statement of accounts much like a bank statement,” he noted. “However, what we are now looking at has turned into a crime scene.”

The Treasury had earlier attributed errors in Gazette Notice No.5726 to misprints by the Government Printer, later issuing a revised version under Notice No. 5803.

However, Wanjigi argued that the scale of the discrepancies affecting 84 out of 89 entries goes beyond clerical mistakes and points to systemic negligence.

“If your bank told you today that you have millions and tomorrow that you have zero, you would call the police,” he remarked, drawing parallels between personal banking and national financial management. “That is exactly what Kenyans should be doing now.”

Among the anomalies highlighted was what he termed a “schoolboy error,” where total revenue figures were reportedly duplicated from recurrent expenditure entries, suggesting the government spent exactly what it earned while disregarding development expenditure.

“This is not a minor oversight. It is a display of carelessness,” he stated.

Wanjigi further pointed to the mysterious disappearance of the Department of Performance and Delivery, which had initially been allocated over Ksh129 million ($998,073) but was omitted entirely in the revised notice.

“What we are witnessing is the manual erasure of what appears to be ghost expenditure,” he claimed.

Wanjigi also questioned drastic overnight changes in allocations to key institutions, including the Teachers Service Commission and the Ministry of Defence, which reportedly rose by Ksh295 billion ($2.3 million) and Ksh123 billion ($951.7 million) respectively between the two notices.

“These are impossible fluctuations that suggest either systemic failure or attempts to reconcile undocumented disbursements,” he said.

Additionally, he flagged a sharp increase in the State House budget, which rose from approximately Ksh529 million ($4.1 million) in the initial notice to over Ksh12 billion (92.9 million) in the corrected version – an adjustment he described as “deeply concerning.”

However, the most contentious issue remains the reported Ksh150.7 billion ($1.2 billion) held in a sovereign bond proceeds account, which he alleged falls outside the Consolidated Fund, contrary to constitutional requirements.

“Article 206 of the Constitution is clear – every shilling borrowed in the name of the people must be deposited in the Consolidated Fund,” he said. “By holding this money in a separate account, the Treasury is bypassing oversight mechanisms and evading parliamentary scrutiny.”

Wanjigi questioned the origin of the funds, noting the absence of any publicly known Eurobond issuance in the current quarter. He further issued a series of demands to the Treasury, including full disclosure of the account holding the funds, publication of certified statements and accountability for any interest accrued. He also called for immediate intervention by oversight bodies.

“The Controller of Budget and the Auditor General must freeze this account until it is brought into legal compliance,” he urged.

He warned that Kenyans, already burdened by public debt, would not tolerate what he termed as “shadow banking” and opaque financial practices.

“We deserve precise and transparent accounts, not vague approximations that leave billions unaccounted for,” he said.

The National Treasury is yet to issue a detailed response to the latest allegations.

• A Tell Media / KNA report / By Nyawira Githinji and Nicholas Ochieng