Parliament adds Sh93.5 billion to State expenditure

Parliament yesterday increased the total recurrent expenditure for the financial year ending June by Sh93.5 billion. It, however, reduced the capital expenditure by Sh84 billion.

Besides allocations to the Executive, Judiciary got Sh1.9 billion while the Parliamentary Service Commission (PSC), which runs the affairs of the Legislature got Sh2.4 billion.

Budget and Appropriation Committee chairperson Ndindi Nyoro said: “We have managed as a committee to condense our appetite. Our deficit is 5.7 per cent of GDP. We must live within our means.”

MPs then passed the Supplementary Appropriation Bill, which allocates money to government ministries and agencies before the main Budget.

The Bill allows the National Assembly to issue Sh200.7 billion from the Consolidated Fund and apply it towards the supply granted for the service of the year ending on June 30.

In the first Supplementary Budget for Financial Year 2022/23, the National Treasury has cut development spending by Sh106.3 billion, with a substantial chop being on the State Department for Infrastructure and Water and Sanitation.

Recurrent spending, which includes day-to-day expenditures such as salaries and wages, pension, training and foreign and domestic travel, has gone up by Sh92 billion.

The State House Budget has more than doubled to Sh8.85 billion from Sh4.37 billion approved under the then President Uhuru Kenyatta. Similarly, the budget for Deputy President Rigathi Gachagua’s office has been increased by Sh914.25 million to now stand at Sh2.63 billion.

The State Department of Interior and Citizen Services was the main beneficiary with Sh4.1 billion out of which correctional services has been allocated Sh765 million.

Primary education — which caters for the newly introduced Junior Secondary School — has been allocated Sh5.9 billion while secondary education will now get Sh17.2 billion. In addition, the State Department for Vocational and Technical Training has been allocated Sh4.1 billion. University education has  been allocated Sh4.5 billion.

Meanwhile, the Teachers Service Commission (TSC) has been allocated Sh656 million for the recruitment of teachers.

The Ministry of Health was allocated Sh10.9 billion with a further Sh1 billion going to salaries and support services, while the State Department for Transport has been allocated Sh2.7 billion. Rail transport gets Sh1.8 billion, marine transport Sh468 million and air transport only Sh50 million.

Housing projects

One of the key components of the Kenya Kwanza development programmes — the department of housing — has been allocated Sh12.7 billion with Sh9.2 billion going to housing development and human settlement and a further Sh3.4 billion for urban and metropolitan development. This is meant to fund the construction of affordable houses.

Another big winner is the State Department for Information Communication and Innovation, which has been allocated Sh10.9 billion for infrastructure development and a further Sh246 million for e-government services to support President William Ruto’s agenda of digitising over 600 government services by June.

Meanwhile, the Ministry of Energy has been allocated Sh31 billion for transmission and distribution of electricity and a further Sh9.4 billion for power generation, signaling the government’s intention to increase electricity production to drive industrialisation and lighting up of homes.

The office of the Auditor General got Sh389 million while the State Department for Youth Affairs was allocated Sh322 million for youth empowerment. Other allocations include Ethics and Anti-Corruption Commission (Sh83 million), Office of the Director of Public Prosecutions (Sh45 million) and Public Service Commission (Sh26.3 million). Nominated MP John Mbadi described the Budget as unrealistic, arguing that some allocations had gone to non-core areas.

“Ruto said we will cut expenditure, Kenyans expected to see a reduction. Why don’t we have budget cuts?” he asked.

However, his Embakasi East counterpart, Babu Owino said: “We made sure as a committee that we reach the micro-business equilibrium in this Budget. I fully support the Budget.”

Earlier, the Budget committee rejected the payment of Sh4 billion meant for maize flour subsidy on account of non-disclosure of the quantity of maize supplied and the areas in which the subsidised flour was supplied. MPs also noted that the retail outlets that were involved in distribution were not disclosed. The matter now becomes an audit query for the Auditor-General to open an inquiry to investigate how the money was spent and why it was used without approval of Parliament as required by Article 223 of the Constitution.

The committee has thus rejected a total expenditure of Sh10 billion spent under Article 223 of the Constitution in the run-up to last August’s election, which allows the national government to spend monies that have not been appropriated by Parliament if the amount appropriated for any purpose under the Appropriation Act is insufficient or a need has arisen for expenditure for purpose for which no amount has been appropriated by that Act, or money has been withdrawn from the Contingencies Fund.

It also took note that among the approved expenditure that have not been disbursed was Sh17 billion for the fuel subsidy programme. The committee thus raised concerns on the criteria used to disburse Sh25. 6 billion that had been approved and disbursed.

Approved expenditure

Budget and Appropriation Committee in the report on the first Supplementary estimates for the year 2022/2023 also noted that out of the Sh127.5 billion allocated to the national government, only Sh75.7 billion has been disbursed. As part of its recommendations, the committee has also called for an inquiry to investigate the payment of Sh6 billion for the exit of Helios Investment from the shareholding of Telkom Kenya.

“The committee noted that there was no justification provided for such payment under Article 223 and why the payment could not wait for the normal budget process,” Nyoro said.

Leader of Majority Kimani Ichung’wah said there was a blatant misuse of Article 223 during the tail end of the Jubilee administration’s term. Although much of the money went to the payment of subsidies for purchase of maize, millers were not paid and Kenyans did not benefit from the maize flour.

“What happened to the fuel and maize subsidies? Parliament must probe the payments and those who authorised them,” Ichung’wa said.

The Budget Committee has, however, approved the utilisation of Sh12 billion intended for the Annuity Fund to finance approved road projects and the same be refunded from the Exchequer in future appropriations.

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