Ksh3.4b boost for Ruto,Gachagua,Mudavadi offices

The Treasury has recommended additional billions to the three offices in its second 2022/23 supplementary budget, which covers spending in the fiscal year ending June 30, despite a Ksh39 billion decrease in development allocations.
The Executive Office of the President will receive the lion’s share of budget increases, totaling Ksh3.1 billion, while the Deputy President’s and Prime Cabinet Secretary’s offices will receive Ksh166 million and Ksh81.3 million, respectively.
State departments and ministries, on the other hand, such as the Treasury, correctional services, infrastructure, the National Assembly, the Teachers Service Commission, crop development, and agricultural research, are among the biggest losers in the mini-budget, which comes just days before the fiscal year ends.
The enhanced allocations to the President’s Executive Office will cover salaries for newly created offices as well as increased spending for operational and maintenance budgets.
“The net change in current expenditure of Ksh2.6 billion is due to additional funding to cover shortfalls in personal emoluments and operations and maintenance expenditures for new offices in accordance with Executive Order 1 of 2023,” the Treasury explained.
“The net charge of Ksh465 million under capital expenditure is to facilitate the refurbishment of buildings.”
State House Affairs will receive the most additional appropriated cash, Ksh2.1 billion from the overall budget adjustment.
The Chief of Staff and Head of Public Service will get an additional Ksh571.8 million to cover hospitality goods and services, office furniture purchases, and petrol and lubricant charges.
Meanwhile, former President Uhuru Kenyatta’s administration is likely to lose Ksh20 million, with significant cuts made to the budget for routine maintenance of vehicles, other transport equipment, and other assets.
State House Nairobi has received an additional Ksh1.5 billion, with the majority of the funds — Ksh231 million — designated for hospitality goods and services.
Domestic and foreign travel budgets will be boosted by Ksh175 million and Ksh15 million, respectively, while basic salary for personnel will be enhanced to Ksh26.3 million.
The office of the State House Spokesperson will receive Ksh49.3 million to pay basic salary and personal allowances for permanent personnel.
Meanwhile, the First Lady’s office will receive an additional Ksh295.7 million, with the majority of the funds going toward salaries and the remainder going toward personal allowances, domestic travel, and hospitality.
The office of the Spouse to the Deputy President, on the other hand, will lose Ksh31.9 million from its budget, with Ksh10 million cut from domestic travel.
The Ksh465 million budget increase involves additional spending on upkeep at State House Nairobi as well as general maintenance at State House Mombasa, Sagana, and State lodges in Nakuru, Kakamega, Kisumu, and Eldoret.
The increased appropriations for the Deputy President’s and Prime Cabinet Secretary’s offices cover increases in operations and maintenance budgets, including wages and personal allowances, as well as hospitality services.
The President’s office currently contains 13 major offices, including fiscal affairs and budget policy, economic reform, women’s rights adviser, and Council of Climate Change Adviser, as a result of the first Executive Order of 2023.
The newly established offices have resulted in an increase in government spending on wages and salaries, with the national government exceeding the wage bill by roughly Sh16.6 billion in the first nine months of the current fiscal year.
The new administration’s numerous appointments in various areas of the public sector have also weighed significantly on the government’s pay cost.
State departments, for example, were increased from 44 to 51, and 50 chief administrative secretaries were established.
The nine-month salary bill explosion coincided with delays in paying public servant salaries, with the administration admitting to cash issues.
The huge salary bill has sparked suspicions about doublespeak by the new administration, which had promised to implement budget cuts in the quest of fiscal consolidation from the start.
For the fiscal year beginning July 1, the administration, for example, had targeted budget cutbacks of up to Ksh300 billion.
The revised Ksh3.68 trillion 2023/24 Budget reflects modifications to the earlier Ksh3.359 trillion Budget.
Despite its efforts to rationalize the Budget, the administration has endeavored to reaffirm that it remains on a fiscal consolidation path that would be grounded on the prospect of higher revenue mobilization in the next Budget cycle.
“The government fiscal policy and medium-term budget for FY 2023/24 aim to implement a growth-friendly fiscal consolidation plan to ensure debt sustainability.” This would be accomplished by increased revenue collection, notably through extending the tax base, and by reducing total spending,” Treasury Cabinet Secretary Njuguna Ndung’u told MPs on Thursday.
Business Daily