State operating costs surge, breach Treasury target

National Treasury Cabinet Secretary John Mbadi displays the Budget briefcase ahead of unveiling the government spending plan for the financial year 2025/2026 in Parliament on June 12, 2025.

Photo credit: File I Nation Media Group

Government spending on day-to-day expenses such as office supplies, transportation, fuel, travel and repairs in the first quarter of the current financial year ending June 2026, rose for the first time in three years, signaling easing of deep cuts in operational costs.

The National Treasury has disclosed in the latest quarterly budgetary report that operations and maintenance (O&M) expenditure for the July to September 2025 period climbed 41.34 percent to Sh320.90 billion.

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