The government’s delay in releasing funds for development projects has left several state offices and departments unable to implement programmes worth Sh6.4 billion during the first five months of the 2025/26 financial year.


The stalled funding has hit key sectors, including energy, social services, and oversight agencies, threatening both planned initiatives and ongoing projects.


Treasury disclosures show that at least seven offices and state departments, with a combined development budget of Sh6.4 billion, had not received any funding for projects by the end of November 2025.


The affected entities include the offices of the Deputy President, Auditor General, Director of Public Prosecutions, and the Ethics and Anti-Corruption Commission (EACC), as well as the State Departments for Petroleum, Children’s Services, and Special Programmes.


The Deputy President’s office had a Sh100 million development budget for initiatives in the coffee sector and combating illicit alcohol and substance abuse, which remained unfunded. Out of the office’s total Sh3.07 billion budget, Sh2.97 billion was allocated to recurrent expenditures, including travel, hospitality, and salaries.


“In the fiscal year 2025/26 and the medium term, the primary outputs will encompass oversight and coordination of development partners’ funded projects to ensure alignment with and support for the implementation of the BETA framework, as well as facilitating government strategic initiatives in the agriculture sector along the BETA value chains, including coffee and tea, among others,” the Treasury states.


At the State Department for Special Programmes, Sh165.5 million meant for development projects also went unfunded, putting programmes that support 400,000 households with relief food and the production of drought contingency plans at risk.


The Auditor General’s office did not receive funding for its development projects, which include expanding regional offices and producing audit reports. The office has a Sh330 million development budget for the current fiscal year.


“In the financial year 2025/26 and the medium-term period, the office will continue to implement measures that will adhere to quality and timely audits in compliance with professional standards. This will be through the upgrade of the Audit Management System (AMS) to incorporate changes in audit standards,” the disclosures read.


“The office also plans to establish more regional offices and furnish and fully equip the existing ones in order to respond to demand for timely access to audit services, acquisition of more audit management system licenses to accommodate newly recruited technical staff.”


Among the targeted regional offices is the Mombasa office block, expected to reach 28 per cent completion by the end of June 2026.


The Ethics and Anti-Corruption Commission, with a Sh180 million development budget, had not received any funding by the end of November. Similarly, the State Department for Children Services, whose Sh244 million development allocation was earmarked for the year, remained unfunded.


Despite being allocated Sh5.3 billion for the year, the State Department for Petroleum had not received any funding during the first five months. Planned initiatives include supplying 6kg liquefied petroleum gas cylinders to 100,000 low-income households and providing clean cooking gas to 200 learning institutions.


“During the medium-term period for the financial year 2025/26–2027/28, the State Department will prioritise initiatives aimed at enhancing the exploration, development, production, and commercialisation of oil and gas resources, thereby ensuring a reliable supply to support sustainable economic growth,” the documents read.


Treasury notes that among the department’s targeted projects is the South Lokichar Oil Field, where acquisition of 80 per cent of the land should be completed, and the development of the Kenya-Tanzania natural gas pipeline.