State House, Nairobi, has been handed an extra Sh3.7 billion in the third supplementary budget, marking a sharp rise in expenditure just days before the close of the financial year.
The fresh injection, tabled by the National Treasury less than two weeks before June 30, is largely directed towards domestic travel and operational costs, with significant increases recorded in transport, hospitality, salaries, and general maintenance.
The National Treasury tabled the mini-budget for the 2024/2025 fiscal year on Wednesday, just days before the financial year closes on June 30.
The latest estimates show that State House’s local travel and transport costs have jumped from Sh933.1 million to Sh2.1 billion, while unclassified operating expenses have surged from Sh1.36 billion to Sh3.1 billion.
“This is the supplementary estimate of the amount required in the year ending June 30, 2025, for salaries and expenses of State House, including State lodges, administration of statutory benefits to retired presidents, vice presidents, other State officers, presidential communication service and policy analysis and research,” the exchequer stated.
Permanent staff salaries at State House have been increased to Sh1.21 billion from Sh1.11 billion.
Spending on hospitality supplies and services has also risen significantly from Sh663.8 million to Sh1.05 billion.
Allocations for vehicle maintenance have been raised from Sh262.5 million to Sh497.5 million.
However, the administration of statutory benefits to retired presidents and vice presidents has seen a cut of Sh81.4 million, attributed to reduced insurance costs.
The third supplementary budget proposes to raise overall government spending by Sh18.9 billion.
Other top recipients of extra allocations include the Teachers Service Commission, the State Department for Higher Education, the Internal Security, and the National Intelligence Service.
Meanwhile, the State Department for Basic Education, Economic Planning, Roads, Medical Services, and Transport have faced funding cuts in the revised estimates.
The Treasury has linked the adjustments to missed revenue targets in the current financial year, blaming disruptions on early-year protests and the withdrawal of the Finance Bill, 2024.
State House Renovations Budget in the upcoming Financial Year Stir Debate.
In a move that has ignited public debate, Kenya's Executive Office of the President and State House are slated to receive substantial budgetary allocations for renovations and refurbishment in the upcoming 2025/26 fiscal year.
The expenditure, revealed in a recent National Treasury breakdown, stands in contrast to the government’s stated commitment to fiscal austerity and the reduction of non-essential spending. Despite calls for belt-tightening, the State House Nairobi and its associated lodges across the country are positioned to expend a significant portion of a Sh2.3 billion allocation on a comprehensive program of upgrades and maintenance. Specifically, Sh894.9 million has been earmarked for rehabilitation efforts at State House Nairobi and other official residences.
Concurrently, the Office of the President is set to experience a dramatic expansion in its development budget, skyrocketing nearly 300-fold from the current financial year’s Sh50 million to a proposed Sh1.46 billion. This substantial funding surge, which encompasses renovation projects at Harambee House and the refurbishment of the Government Press, appears to contradict earlier assurances from the Kenya Kwanza administration of disciplined fiscal management in the wake of revenue shortfalls and reduced external funding.
The financial commitment to the presidential estate comes at a time when the government faces mounting pressure to adopt a leaner budget. Initial Treasury projections had placed government spending at Sh4.3 trillion. However, the Cabinet recently indicated that significant revisions would be necessary to align with lower revenue expectations. The government’s stated objective is to reduce the fiscal deficit to 2.7 percent while simultaneously avoiding further tax increases, necessitating deep expenditure cuts across various sectors. This backdrop makes the augmented allocation for State House renovations particularly conspicuous.
The latest budget allocation follows a previously controversial refurbishment of State House Nairobi, which involved significant alterations to its colonial architectural design. The makeover, including modifications to the roofing structure, elicited mixed reactions from the public and professional bodies, including the Architectural Association of Kenya (AAK). Prior to the current allocation, funding responsibility for State House renovations had been shifted to the National Intelligence Service (NIS) and the Ministry of Defence.
In a previous budget cycle, the National Treasury initially set aside Sh1.5 billion for refurbishment works before withdrawing financial support due to public criticism and fiscal constraints. This rollback occurred amid mounting frustration over perceived excessive government spending, particularly in the wake of widespread youth-led protests that compelled the administration to abandon proposed tax increases under the Finance Bill 2024.
Despite earlier reassurances, the National Treasury has reinstated Sh894.9 million for further facelift projects, with Sh680.7 million specifically designated for general maintenance at State House Nairobi. A detailed analysis of the budget reveals additional allocations for the upkeep of regional State House lodges, including:
* Eldoret State Lodge: Sh60.1 million
* State House Sagana: Sh15 million
* Mombasa State House: Sh42.5 million
* Nakuru State House: Sh25 million
* Kisumu State Lodge: Sh24 million
* Kakamega State Lodge: Sh25 million
* Mechanical Garage: Sh10 million
* Kisii State Lodge: Sh12.5 million
Government officials have defended these renovations as necessary, citing the structural deterioration of many of these buildings. State House Comptroller Katoo Ole Metito says that parts of the main State House had become unfit for habitation before renovation efforts commenced in late 2022. Architectural experts had advised that a complete reconstruction of State House Nairobi might be required, but government officials opted for renovations as a more cost-effective alternative. The National Treasury has justified the renewed expenditure by stating that the renovations are essential in supporting the President’s constitutional mandate.
