John Mbadi Warns Govt Entities Against Additional Budget Expenditures: "I Won't Approve"

• President William Ruto's administration set austerity measures to reduce expenditure after the withdrawal of the Finance Bill 2024
• Treasury Cabinet Secretary (CS) directed state departments and ministries to stick to these measures and ensure less spending
• Mbadi warned the MDAs against raising proposals for additional funding from the exchequer, noting that he will not approve any

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Treasury will not fund any additional budget allocations in the financial year 2024/25.

This is according to Treasury Cabinet Secretary (CS) John Mbadi.

Speaking during the launch of the 2025/26 Budget Preparation Procedure on Monday, September 9, Mbadi sounded a stern warning to accounting officers over increased spending.

Which areas does John Mbadi want spending reduced?

The CS cited the austerity measures highlighted in the first supplementary budget, urging ministries and state departments to cut expenditures on hospitality, travel, and conferences.

"We came up with the supplementary budget at an early stage to cut on expenditures in line with the projected revenue collection.

"Accounting officers, please take note that Treasury will not support any additional expenditures especially in areas like hospitality, foreign travel, domestic travel, conferences... Please don't bring any requests for adjustments, they will not be approved," said Mbadi.

Mbadi directed the MDAs to operate within their budget allocation.

He said the government cannot afford to go overboard in terms of the budget deficit, which has hit KSh 767 billion.

"Treasury intended to have a budget deficit of KSh 597 billion but now we have a deficit of KSh 767 billion, which is KSh 170 billion, more than what we had planned, to actualize the fiscal consolidation policy," he said.

Mbadi launches 2025/26 Budget Preparation

The CS said this during the launch of the 2024/25 Budget Preparation Procedure, defining measures to enhance revenue collection.

Mbadi highlighted the medium-term revenue strategies that will reduce the budget deficit.

Among the policies are a reduction in tax rates, easing of interest rates, and a reduction in expenditure.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

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Mbadi told MDAs to operate within the allocated budget.

John Mbadi Warns Govt Entities Against Additional Budget Expenditures

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