The Controller of Budget (CoB) Margaret Nyakang’o declined to approve Sh11.6 billion requested under article 233 of the constitution by various ministries, Departments and Agencies (MDAs) to fund various projects.

In her latest report, Nyakang’o only approved Sh19.1 billion out of the Sh30.7 billion that the MDAs had sought approval.

Nyakang’o explained the approved amount was 0.5 per cent of the revised net estimates and within the 10 per cent ceiling in accordance with Article 223 of the Constitution.

Article 223 of the Constitution allows the MDAs to access additional funding during the budget implementation period.

In FY 2023/24, the Controller of Budget authorised Sh19.12 billion under Article 223 of the Constitution.

She said: “The approvals were regularized in Supplementary Budget I, dated November 23, 2023, and Supplementary Budget II, dated June 10, 2024.”

Settling pending bills

 Among MDAs that received allocations include State House Sh1.2 billion to cater for priority expenditures including national security and state functions, National Treasury Sh4 billion to cater for payment of budget deficit and settling pending bills for revenue mobilisation at the Kenya Revenue Authority (KRA) and to cater for donor related activities.

The State Department for Development of the Arid and Semi-Arid Lands (ASAL) got Sh2 billion to fund Kenya’s development response to displaced Impact Project Loan as well as to deal with drought and humanitarian emergency while the State department for Crop development was given Sh500 million for purchase of maize.

The State Department for Forestry was on the other hand given Sh2 billion to cater for personnel emoluments for the state department for forestry. The National Police Service received Sh2 billion to cater for medical and group insurance covers though it had requested for Sh4 billion.

 State Department for Crop Development got Sh3 billion to cater for the long rains, the fertiliser subsidy programme while the State Department for Cooperatives got Sh600 million to cater for excess milk mop-up. The state Department for Trade on the other hand got Sh54.4 million to support the operations of the cabinet secretary.

Regional transport

 State Department for Information Communications and Technology and Innovation got Sh221 million to support East Africa regional transport, trade and development facilitation while the State Department for Energy received Sh78 million for Eastern Electricity Highway project.

The State Department for Crop Development on its part got Sh448. 8 million to cater for mobilization and purchase of grain dryers.

 On overdraft facility available for the state, the report says that the government was advanced

Sh9.63 billion which is an increase of 87 per cent compared to advanced overdraft facility charges of Sh5.16 billion in FY 2022/23.

 This increase, the report says, is due to the gradual change in the CBK rate and increased use due to revenue shortfalls at the National Treasury.

 Further, the increase is because the overdraft limit increased from Sh80.05 billion in FY 2022/23 to Sh97.05 billion in FY 2023/24.

 The overdraft facility is a temporary source of funds primarily used to finance the shortfall in domestic debt instruments such as matured Treasury Bills and foreign debt payments.

 The Central Bank of Kenya (CBK) manages the government overdraft, which is restricted to a maximum of 5 percent of the most recently audited revenues.

Controller of Budget Margaret Nyakang’o. PD/file