Cash crunch hits Uhuru's Sh300 million inauguration plan

President Uhuru Kenyatta during a meeting at the National Treasury, November 22, 2017. /PSCU
President Uhuru Kenyatta during a meeting at the National Treasury, November 22, 2017. /PSCU

A cash crunch could deny President-elect Uhuru Kenyatta's swearing-in ceremony the usual pomp and colour associated with such a high-profile national fete.

This means

there could be less wining of invited dignitaries during Tuesday's inauguration at Moi International Sports Centre, Kasarani.

Military officers have already secured the stadium and are rehearsing at the venue ahead of the fete whose costs have been capped at Sh300 million.

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The Star learned on Thursday that the team planning Uhuru's swearing-in is "struggling" to get funds from Treasury.

The government has already gazetted Tuesday as a national holiday for the fete.

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Government spokesman Eric Kiraithe said the problem is attributed to the government's inability to collect enough revenue owing to the long political season.

"As of yesterday evening, they were struggling and Treasury does not want to hear about money," Kiraithe said on Thursday.

"Officers in charge of protocol and committee on Assumption of the Office of President are really crying."

He disclosed that the organisers and Treasury CS Henry Rotich were yet to agree on the budget for the ceremony.

"The committee is still negotiating on the budget with Treasury. The inauguration will be a freaky affair and the committee is struggling to do everything which would enable the event definitely meet the basic standard," Kiraithe said.

"I know by today all the figures will be available. When a head of state or friends of Kenya are invited, thaexpenditure in itself. Treasury is employing a cost-cutting measure which will affect things like entertainment."

Kiraithe stated this is to enable Uhuru's administration channel funds to its key priority projects which add value to citizen's lives.

"Jubilee priorities is to fund projects that add value to citizens. Any unnecessary expenditure will be cut out."

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In 2013, the Committee on Assumption office demanded Sh1.2 billion from the Exchequer for Uhuru's swearing-in.

However, Treasury PS Joseph Kinyua disagreed with the team then headed by Francis Kimemia and slashed the sum to Sh279 million.

Judiciary also had a separate budget for the swearing-in held at Moi International Sports Center, Kasarani, on April 9, 2013, bringing the total cost of the event to Sh374 million.

Parliament allocated Sh9.8 billion for the Presidency during the 2017-18 financial years, which is an increase of Sh1.02 billion compared to last year.

An amount of Sh8.7 billion is to cater for recurrent expenditure while Sh1.1 billion will be for development activities. The inauguration funds are drawn from the presidency vote head.

The presidency defended the increase before a parliamentary committee early this year arguing that part of the sum would ensure "successful transition of power after the 2017 general election."

Kiraithe reiterated that lack of investors, tourists and National Super Alliance street protests forcing matatu owners to withdraw their vehicles from the roads hampered tax collection.

He said the cash crunch was caused by unexpected huge expenditures from the August election campaign period to the October 26 presidential rerun.

"A lot of resources were committed to security to prevent disruption of voting as was witnessed in some constituencies," he said.

"Much expenditure could not have been incurred had people adhered to lawful ways of doing things."

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