WHERE THE CASH GOES

SGR takes lion share of state spending

The Treasury disbursed Sh5.9 billion for maize delivered to the National Cereals and Produce Board

In Summary

•Sh35.2 billion set aside to repay a loan borrowed to build the Nairobi–Mombasa line

•Infrastructure and Sports departments biggest gainers in expended funds in quarter three

SGR Cargo train
SGR Cargo train
Image: MONICAH MWANGI

The SGR remains the biggest consumer of state funds with Sh35.2 billion set aside to repay a loan borrowed to build the Nairobi–Mombasa line.

This is disclosed in a National Treasury report on the supplementaty shows that the government dispersed a total of Sh163 billion to various deparrtments.

The report shows that the Infrastructure and Sports departments are the biggest gainers in the funds expended by the Treasury in the third quarter of the 2018/19  financial year.

 

They received Sh8.72 billion and Sh8.45 billion respectively. The Interior department received Sh8.2 billion.

The sports budget was spent on the establishment and operationalisation of the Sports and Culture Fund.

A chunk of the Interior cash went to the National Integrated Information Management System (NIIMS) which had by March received Sh2.9 billion, probably to facilitate the ongoing Huduma Namba registration.

Some Sh1.96 billion of the disbursed funds went to police insurance (Sh1.5 billion) while Sh450 million was spent on security operations.

Maize and sugar farmers also gained big. The Treasury disbursed Sh5.9 billion for maize delivered to the National Cereals and Produce Board, compensation of sugar farmers, and purchase of fertiliser.

The Sh8.7 billion, largely from donor sources, was disbursed for funding the ongoing road projects. Senators received Sh500 million to oversight counties in line with their constitutional mandate.

The controversial Kimwarer Dam received Sh3.5 billion despite the corruption concerns in the project being executed by an Italian firm.

 
 

Cash-strapped universities received Sh5.2 billion to address salary shortfalls, some of which was spent for repayment of loans spent to put up Kenyatta University Referral Hospital.

The Treasury was criticised for bringing the budget estimates late, just days before the 2019/20 budget is debated.

The supplementary budget was tabled in line with Article 223 of the Constitution which allows the government to spend funds and later seek approval from Parliament.

Chair of the Budget Committee Kimani Ichung’wa (Kikuyu) was angered by the late submission, telling the House that he had not seen the document.

Minority leader John Mbadi proposed that the House considers the main estimates before discussing the supplementary budget, arguing, “Parliament is not bound by any timelines on the supplementary budget.”

Speaker Justin Muturi directed the Budget committee to scrutinise how the supplementary budget was spent outside the two-month window allowed by the Constitution and if it is within the 10 per cent limit.

Leader of Majority Aden Duale pleaded with the House to fast-track consideration of the supplementary budget. “Treasury CS Henry Rotich has done nothing but  misbehaved by bringing the estimates late but that doesn’t mean the House should also misbehave….two wrongs do not make a right.”

The report showed that the Deputy President’s office received Sh366 million while President Uhuru Kenyatta’s office got Sh279 million.

Renewed fight against corruption also got a boost of Sh188 million allocated to the Judiciary while IEBC received Sh373 million for by-elections in Migori, Embakasi South, Ugenya and select wards.

The Office of the Auditor General got Sh273 million to support a special audit of county government pending bills.

The National Police Service got Sh15 million to repair motor vehicles; Sh36 million for salaries and Kenya’s participation in the China International Import Expo.

The State Department for Irrigation received Sh146 million for drought intervention. The funds were spent on salaries, water trucking, maintenance of boreholes, and payment of pending bills.

The Treasury also disbursed Sh700 million to settle pending bills owed by the Government Advertising Agency to various media houses.

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