State House’s budget for the new fiscal year from July 1 has been slashed by Sh3.9 billion, signalling a significant revision of domestic travel and motor vehicle purchase plans amid public scrutiny over spending by the office.
Total State House spending will fall to Sh13.6 billion from Sh17.5 billion in the current financial year ending June 30, 2026, according to fresh data from the National Treasury.
Spending linked to President William Ruto’s office in Nairobi doubled in the current financial year from the Sh7.68 billion approved in June 2025 after the budget was boosted by Sh8.4 billion to cater for increased travel, hospitality and other operational expenses.
This pushed State House’s annual spending past equivalent offices in developed nations such as the US, Germany and Portugal, while the allocation was the highest since 2013.
Spending scrutiny
The lower budget for the next financial year signals a moderation in spending amid scrutiny over budget overshoots flagged by oversight offices such as the Controller of Budget (CoB).
The allocation to State House, Nairobi – which carries the bulk of the Presidency’s budget – is set to fall to Sh11.1 billion from Sh14.7 billion.
The reduction reflects cuts across several items, including personal allowances paid as reimbursements, which drop to Sh127 million from Sh663.2 million.
Domestic travel and other transport costs will fall from Sh2.2 billion to Sh1.9 billion, while spending on the purchase of vehicles and other transport equipment declines from Sh297.8 million to Sh86.7 million.
Expenditure under a less transparent budget line labelled ‘other operating expenses’, which rose by Sh4 billion under the first 2025/26 supplementary budget, will fall from Sh5.74 billion to Sh3.5 billion in the next fiscal cycle.
Overspend risk
Spending by State House has been under sharp scrutiny in recent months after the office overshot its full-year recurrent allocation within seven months, prompting a significant boost in funding under the supplementary budget.
State House had spent Sh10.4 billion by the end of January 2026 against an allocation of Sh7.6 billion.
Recurrent expenditures typically cover costs such as travel, accommodation, allowances, hospitality and administrative support tied to the daily functioning of State institutions.
The increase in spending in the current fiscal year signals heightened operational activity for the office, which also administers statutory benefits for retired presidents and deputy presidents.
Spending on the administration of these benefits is set to fall from Sh432.6 million to Sh362 million following the end of funding for the office of former Prime Minister Raila Odinga, who died in 2025.
The allocation for the ex-PM office stood at Sh58.2 million for the cycle ending June 30, 2026.
Budget warning
Controller of Budget Margaret Nyakang’o had earlier flagged the risk of the office depleting its budget midstream despite a high expenditure absorption rate.
‘Whereas this reflected efficient budget execution, it also presented the risk of budget depletion before the end of the financial year 2025/26, leading to budget non-credibility,’ she said.
Scrutiny on State House spending has intensified following disclosures that President William Ruto is running one of the most expensive presidencies, with spending on key offices reaching Sh100 billion in the current financial year.