Budget Committee Raises Alarm Over Low Absorption of Increased Allocations in Supplementary Estimates

The National Assembly’s Budget and Appropriations Committee has raised concerns over the ability of Ministries, Departments and Agencies (MDAs) to effectively utilize increased allocations under the Supplementary Estimates No. 1 for the 2025/26 financial year.

Chaired by Samuel Atandi, the committee questioned persistent low absorption rates, particularly in development expenditure, warning that the trend has continued to stall the implementation of key government projects.

The concerns emerged during a consultative meeting with chairpersons of various departmental committees, who appeared before the Budget Committee to present and defend budget proposals for MDAs under their oversight.

Atandi cautioned that increasing allocations without corresponding absorption capacity could undermine service delivery and delay critical national programs.

“We must ensure that funds allocated to MDAs translate into tangible development outcomes. Low absorption rates in development expenditure remain a serious concern,” he said.

Despite the concerns, departmental committee chairpersons expressed confidence that MDAs would utilize the additional funds within the remaining period of the financial year. They also outlined funding gaps in their respective sectors and appealed for further allocations to support ongoing and planned initiatives.

The Supplementary Estimates No. 1 for the 2025/26 financial year proposes an increase of KSh 316.7 billion, raising the total budget from KSh 4.3019 trillion to KSh 4.6186 trillion. Of the increment, KSh 287.4 billion is allocated to the national government, while KSh 29.3 billion is directed to Consolidated Fund Services.

Reports presented to the committee indicate that most MDAs have benefited from the revised budget. However, several sectors experienced funding cuts, raising additional concerns among lawmakers.

Among those affected is the State Department for Housing and Urban Development, which saw a net reduction of KSh 816 million. Other institutions that recorded budget cuts include the Commission on Administrative Justice, which lost KSh 8.9 million, and the Kenya National Commission on Human Rights, which saw a reduction of KSh 9 million. The Emergency, Chronic and Critical Illness Fund also recorded a significant cut of KSh 2 billion.

Lawmakers noted that such reductions could impact service delivery in critical sectors, even as other areas receive increased funding.

Among the committee chairpersons who appeared before the Budget and Appropriations Committee were John Kanyuthia Mutunga (Agriculture and Livestock), Rindikiri Mugambi (Housing, Urban Planning and Public Works), Nelson Koech (Defence, Intelligence and Foreign Relations), Alice Ng’ang’a (Social Protection), James Nyikal (Health), George Murugara (Justice and Legal Affairs), and Ken Chonga (Labour).

The committee is expected to continue receiving submissions from other departmental committees as it finalizes its review of the supplementary budget. The outcome of the process will inform adjustments to government spending and priorities for the remainder of the financial year.