Government spent Ksh70b on development expenditure- Nyakang’o

President William Ruto’s administration spent KSh70 billion for the development budget from the exchequer releases out of the KSh783.22 billion allocated, the Controller of Budget has revealed.
In her submissions before the National Assembly Finance and Planning Committee, COB Margaret Nyakang’o pointed out that the expenditure stipulated for the first 6 months in the financial year 2023/2024 amounted to 4.9% of the total budget.
Nyakang’o highlighted that the development expenditure violated the Public Finance Management (PFM) Act which stipulates it at 35% of total spending.
“The total exchequer to Ministries Department and Agencies (MDAs) for the period was KSh731.41 billion. This comprises KSh70.41 billion for development representing 15.4% and the revised net development estimates,” she stated.
On the development expenditure account, Nyakang’o exposed how 5 Ministries, departments, and Agencies (MDAs) received over 50% allocation while eleven of them received none.
In the details highlighted, it showed how 19 MDAs received below the 10% proposition of the exchequer way below the required percentage in the PFMA act.
State agencies that received over 50% vote for development include Performance and Delivery Management (83.3%), Statehouse (59.6 %), Office of the Registrar of Political Parties (ORPP) (75.4%), Witness Protection Agency (51.9%) and State Department for Internal security (51.4%).
MDAs that were allocated zero percent for development in the first 6 months include Shipping and Maritime Affairs, Culture and Heritage, Petroleum and Mining, State Law Office, Judiciary, Office of the director of Public Prosecutions, National Land Commission, and National Gender and Equality Commission and Auditor General.
Recurrent Expenditure
On the recurrent expenditure vote, the Government spent KSh561 billion to pay for various expenses including salaries for employees and travel costs amidst the government’s push for cost-cutting measures due to the huge wage bill.
The presentation shows the highest proposition of the releases from the National Treasury was at 85.2% compared to development which was at 4.9%.
On travel alone, the Controller of Budget explained that Ministries, Development and Agencies had spent KSh7.7 billion on domestic travel and KSh3.7 billion foreign travel.
On basic salaries for permanent and temporary employees as well as personal allowances it amounted to KSh291.28 billion representing 38.6% of the ministerial gross spending.
This excludes the expenditure for National Intelligence Service (NIS) and the Kenya Defense Forces both under National Security sector.
The submissions show sectors that   spent above 50 percent of their allocation on recurrent expenditure which is in violation of the PFMA act.
Those enlisted include Statehouse (60.1%),State department for youth affairs (50.3%), state department for labor and skills development (50.4%) and State Department for culture and heritage (50.9%).
Independent Electoral and Boundaries Commission (IEBC) (51%), Witness protection (51.5%), Forestry (52.8%), Internal security and national administration (56.5%), Environment and climate change (58.3%) and Performance and Delivery Management (83.3%).
The submission by the Controller of Budget showed the public debt increased by 8.4% from KSh10.28 trillion as of 30 June 2023 to KSh11.14 trillion as of 31 December 2023.
The highest portfolio of the public debt was the external debt which recorded the highest growth at 11.8% while domestic debt recorded 4.5%.
“High growth in external debt is majorly attributed to the depreciation of the Kenya Shilling against major world currencies since external debt stock is recorded in foreign currencies,”Nyakang’o said.
Additional Budget
The Controller of Budget also revealed details of how various Ministries, Departments and Agencies (MDAs) were allowed to spend a total of KSh3.29 billion under Article 223 of the Constitution for the first 6 months of the 2023/24 financial year.
A total of KSh16.3 million was allocated for the purchase of East African Community Cabinet Secretary Penina Malonza’s official vehicle and KSh1.6 billion to cater for the facelift of Kenyatta International Convention Center (KICC).
State House was allocated KSh400 million to cater for the purchase of motor vehicles and another KSh700 million for the construction of a modern presidential dais at the State House Gardens.
The State Law Office was given KSh250 million for the refurbishment works of the former company’s registry to create modern office spaces and another KSh450.8 million to cater for Value Added Tax (VAT) refund to the US Embassy.
State Department for Micro, Small and Medium Enterprises Development was given KSh470.4 million for the implementation of Kenya Youth Employment and Opportunity Project (KYEOP) closure.
National Treasury KSh405 million to cater for implementation of the East African Transport, Trade and Development facilitation project, while the state Department for ICT & The Digital received KSh873 million to support the regional transport, trade and development facilitation project (ICTA).
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