The State Department for Internal Security has been flagged by the Controller of Budget (CoB), Margaret Nyakang’o, as among six institutions that recorded the highest expenditure of Sh38.6 billion in the last six months.

The National Government Budget Implementation Review Report for the first six months of the financial year 2024/25 from the CoB shows that the department spent Sh13.14 billion in the last six months to implement planned activities as well as deal with security operations.

Of the money Sh5.1 billion was approved under Article 233 of the Constitution to implement planned activities that were not budgeted for in the first Supplementary Estimates, as well as facilitate the implementation of the National Police Service Modernisation Project while Sh8.04 billion is for security operations.

The other departments that have also been flagged include the State Department for Basic Education expenditure of Sh8.19 billion being school examination and invigilation, the National Treasury Sh6.51 billion spent on security operations, the National Police Service (NPS) Sh3.85 billion, including Sh3.0 billion also spent on security operations and Sh1.67 billion spent by the National Assembly for Constituency office expenses.

Travel expenses

“Other expenses amounted to Sh38.60 billion in the period under review, representing 5 per cent of the gross recurrent expenditure,” the report reads.

This came on the day CoB also revealed that in the first six months of FY 2024/25, travel expenditure for the government amounted to Sh9.56 billion comprising Sh6.47 billion for domestic travel and Sh3.11 billion for foreign travel.

Insurance expenditure stands at Sh6.17 billion, Rent and rates on non-residential buildings Sh4.37 billion, Specialised materials and supplies Sh6.87 billion, and hospitality recorded Sh2.10 billion

In the report released yesterday, of the Sh5.1 billion spent under Article 233, the interior ministry approved Sh800 million on October 28, 2024, Sh900 million was approved between December 5 and December 19 while Sh2.5 billion was approved on November 27.

The expenditure of Sh5.1 billion is among the Sh16.9 billion that Nyakang’o approved from Ministries, Departments and Agencies (MDAs) to be spent under Article 233 of the constitution. Of the Sh16.95 billion, Sh12.80 billion is for development expenditure and Sh4.15 billion is for recurrent expenditure.

Article 223 of the Constitution allows the national government to access additional funding during the budget implementation by spending money that has not been appropriated if the amount appropriated for any purpose under the Appropriation Act is insufficient or a need for unbudgeted expenditure arises for which no amount has been appropriated, or money has been withdrawn from the Contingencies Fund. 

“This was within the Constitutional threshold of ten per cent of the sum appropriated by Parliament in any particular financial year (Sh4.37 trillion for 2024/25),” the report reads.

With regards to MDA’s which requested for Exchequer issues under Article 223, the NPS was given Sh343.67 million to cater for the Multi-Agency Security support mission to Haiti.

The move comes hardly a month after President William Ruto early this year clarified that Kenya-led Multinational Security Support (MSS) mission in Haiti would continue to receive financial assistance from the United States government following uncertainty on the recent decision by the US President Donald Trump administration to suspend financial support for numerous programmes.

The State Department of Economic Planning in respect to Kenya National Bureau of Statistics (KNBS) spent Sh2.3 billion to cater for Eastern Africa Regional Statistics World Bank programme for results.

Settling arrears

The State Department of Roads spent Sh8 billion to facilitate  the settlement of outstanding pending certificates and implementation of urgent road infrastructure, the State Department for Broadcasting and Telecommunications spent Sh627.69 million to facilitate settlement of outstanding  pending under the Government Advertising Agency (GAA) while State Department for Public Health and Professional Standards spent Sh1.75 billion to cater for salary arrears accrued to medical doctors arising from the implementation of 2017-2021 CBA.

In terms of absorption of resources, the report raises concerns that the Public Service Commission and National Police Service Commission spent 26 per cent and 28 per cent, respectively, of their budgets in the first half of FY 2024/25, which was way below the 50 per cent target while the Office of the Office of the Attorney General used 73 per cent of their budget in the same period.

Further the report says that an analysis of the financial report as of December 31, 2024 submitted by the National Treasury revealed that publicised Exchequer issues for the period under review that appeared in the Kenya Gazette notice no. 502, dated January 17, differed from the reported exchequer receipts.

“Accordingly, the National Treasury should ensure accurate quarterly reporting and appropriate reallocations in Supplementary Budget II by providing a realistic budget,” the report reads.

With regards to compensation of employees, the report says that this amounted to Sh304.57 billion, representing 53 per cent of the revised allocation.

Overdraft facility

The payment however did not include payment for the National Intelligence Service and Kenya Defence Forces under the National Security Sector, and Semi-Autonomous Government Agencies, State Corporations or State Owned Corporations.

With regards to the Overdraft Facility, which is the short-term borrowing by the government to cover temporary cash shortfalls and repayable within twelve months, the report says that the total charge on the facility was Sh3.48 billion.