Budget Allocations Sit Idle as Cash Delays Stall Government Project Rollout

Several government offices entered the current financial year with approved development budgets but have yet to receive any project funding, raising concerns about execution gaps rather than budget size. Treasury disclosures show that by the end of November 2025—five months into the fiscal year—at least seven state offices and departments with a combined development allocation of Sh6.4 billion had not received a single disbursement.

The affected entities include the offices of the Deputy President, the Auditor-General, the Director of Public Prosecutions, and the Ethics and Anti-Corruption Commission, alongside the State Departments for Petroleum, Children’s Services, and Special Programmes. The absence of cash releases means projects remain stalled on paper despite parliamentary approval, increasing the risk of delayed public investment, weakened oversight functions, and interruptions to social-protection programmes.

The most immediate pressure point is the State Department for Petroleum, which has a Sh5.3 billion development allocation but had not received funds by November. The delays place flagship initiatives at risk, including the distribution of 6kg LPG cylinders to 100,000 low-income households, clean-cooking support for 200 learning institutions, and land acquisition for the South Lokichar oil field, where an 80 percent target had been set. The proposed Kenya–Tanzania natural gas pipeline also faces uncertainty due to the funding lag.

Other offices are experiencing knock-on effects. The Deputy President’s office, which has a Sh100 million development budget, faces delays in programmes linked to the coffee sector and efforts to curb illicit alcohol and substance abuse. The State Department for Special Programmes risks disruptions to relief food support targeting 400,000 households, as well as drought preparedness planning.

Meanwhile, the Auditor-General may be forced to postpone regional office expansion and upgrades to audit systems.
Together, the stalled disbursements highlight how cash-flow pressures at the Treasury level can quietly undermine implementation, even where policy priorities and budget approvals are already in place.