The Controller of Budget Margaret Nyakang’o has taken decisive action on emergency expenditure requests from the State House and the Ministry of Interior.
In a recent report, Nyakang’o discloses that she approved only Sh3.892 billion of the Sh6.023 billion requested on April 9, 2024, for off-budget spending. State House’s request for Sh2.858 billion, intended for unspecified “national security and State functions,” was significantly trimmed to Sh1.242 billion. Similarly, the Ministry of Interior’s request for Sh3.165 billion for multi-agency security operations was reduced to Sh2.65 billion. These decisions reflect Nyakang’o’s commitment to stringent oversight measures outlined in Article 223 of Kenya’s Constitution, which permits emergency expenditures within specific parameters and mandates parliamentary approval within two months for any withdrawals made.
The provision for emergency spending has been a subject of controversy, particularly in light of past misuse. A notable example occurred during President Uhuru Kenyatta’s administration, where Sh15 billion was allegedly spent on questionable activities just prior to the 2022 elections. During the 2023-24 fiscal year, the national government’s off-budget spending reached Sh19.1 billion, a figure that was subsequently regularized in supplementary budgets. This amount, however, represents only a fraction of the total Sh30.65 billion requested by various ministries, indicating a significant disparity between requested and approved expenditures across different government departments.
The approved Sh19.1 billion accounted for a mere 0.5% of the national government’s approved budget for the financial year, signaling a trend towards stricter budgetary discipline. National security functions are often shrouded in confidentiality, as emphasized by State House spokesperson Hussein Mohamed. While asserting that the allocated resources were strictly directed towards national security matters, Mohamed refrains from providing specific details on fund distribution or confirming any connection to President William Ruto’s recent diplomatic trips to Ghana and Guinea-Bissau.
The Ministry of Interior justified its allocations as essential for ongoing security operations, Madaraka Day preparations, and flood victim compensation in Nairobi. The broader financial landscape reveals significant strain, primarily due to an escalating debt crisis. Loan repayments surged by nearly 30% in the 2023-24 financial year compared to the previous period. The allocation for debt servicing grew from Sh1.58 trillion to Sh1.99 trillion. This alarming rise in public debt servicing resulted in a total expenditure of Sh1.59 trillion, representing 89% of the revised annual estimates.
Financial pressures have been further exacerbated by rising pension obligations and regulatory finance requirements. Concurrently, county governments faced their own challenges, notably missing out on Sh30.83 billion earmarked for the June 2024 disbursement as per the County Allocation of Revenue Act, 2023, thus placing additional strain on local administrative capabilities.
