The total discretionary expenditure amounted to Kshs. 1.17 trillion. This includes Kshs. 710.68 billion for recurrent expenditure and Kshs. 460.88 billion for development expenditure. Bulk of the funds is used for compensation of employees (26%), grants and transfers to other government agencies (40%) and for acquisition of non-financial assets (18%).

The discretionary expenditures for 2012/13 are funded from government revenues (GoK) amounting to Kshs. 848.54 billion, Appropriation-in-Aid (A-i-A) amounting to Kshs. 85.52 billion, grants from donors amounting to Kshs. 58.69 billion and loans from donors amounting to Kshs. 173.41 billion. The recurrent expenditure is only funded by government revenues and A-i-A while development expenditures are funded by government revenues, A-i-A, grants and loans.