FIRST SUPPLEMENTARY ESTIMATES

KQ, Kenya Power bailout top Treasury Sh126bn extra budget

Yatani seeks MPs approval for monies spent in line with law allowing prior use

In Summary
  • The Independent Electoral and Boundaries Commission has been allocated an extra Sh8.8 billion for managing the August general elections.
  • A number of programmes have been suspended to release monies for the areas that need budgetary adjustments.
Treasury CS Ukur Yatani during an interview at his office on December 22.
Treasury CS Ukur Yatani during an interview at his office on December 22.
Image: EZEKIEL AMING'A

The National Treasury is spending Sh38 billion to bailout Kenya Airways, Kenya Power and universities.

Treasury is seeking the approval of the National Assembly for an extra Sh126 billion spent in this year’s budget.

KQ has been allocated a chunk of the additional amount at Sh26 billion followed by expenditures on fuel subsidy that took up Sh24 billion.

Allocation to Kenya Airways constituted the highest of the Treasury’s extra spending, most of which was drawn from a reduction in marine transport projects at Sh15 billion.

“The reduction is on account of rationalisation of slow-moving projects,” Yatani said, adding that KQ allocation is to help cater to the airline’s expenditures.

Universities are also set for a cash boost with the allocation of Sh8.5 billion more to cater to their tuition expenses and for research.

In the first supplementary estimates for the current financial year, Treasury also wants Sh14.9 billion for the Ministry of Health, a chunk being expenditure on Covid-19 vaccines.

The Independent Electoral and Boundaries Commission has been allocated an extra Sh8.8 billion for managing the August general election.

Treasury CS Ukur Yatani further wants MPs to okay Sh10.8 billion spent on development partners’ funded projects in line with Article 223 of the Constitution.

“This increase (Sh126 billion) is largely on account of increase in appropriation in aid, provision for Covid-19 expenditure, security-related expenditure, and support to state-owned enterprises,” Yatani said.

The law allows Treasury to spend money then seek approval of the National Assembly within a stipulated period, keeping the adjustments within a threshold of 10 per cent.

“We are in this regard seeking the approval of the expenditure adjustments which are beyond the 10 per cent threshold in accordance with regulation 40 (9) of the PFM regulations, 2015,” Yatani explained to MPs.

In the adjustments, the Health budget has been increased by nearly Sh15 billion to cater for the Covid-19 vaccines funded by the World Bank and also for the vaccines plant.

The Defence ministry is also among the top gainers with the allocation of Sh15 billion for security support and salary shortfall related expenditures.

Yatani has also sought approval for Sh3.3 billion more to State House, being Sh1.8 billion for operation and maintenance and Sh1.2 billion for the Nairobi Metropolitan Services.

The basic education budget has also been upped by Sh3 billion to cater to school feeding programmes in primary schools. Secondary schools have been allocated Sh392 million of the amount.

Treasury has also injected more funds to the roads sector at Sh7.3 billion whereas the Housing department has been provided with Sh3.2 billion more.

The government has also put Sh3.5 billion towards the Kazi Mtaani project in the adjustments under the Housing department’s budget.

Yatani’s team is also seeking the approval of MPs for an extra Sh4.2 billion Water ministry budget to cater to drought-related interventions. Sh1.1 billion will go towards land reclamation.

Tea, coffee, and sugar farmers are also tipped for a boon with the provision of Sh3.8 billion to support the sectors in line with President Uhuru Kenyatta’s reform agenda.

The Judiciary has been provided with an extra Sh1.1 billion for dispensation of justice whereas the National Intelligence Service got Sh2 billion more to bolster their operations, being an electioneering period.

Treasury has further provided Sh6.9 billion to the Teachers Service Commission for recruitment of additional teachers to cater to staff shortfalls.

The changes would see the recurrent budget increase to Sh1.4 trillion and Sh681 billion in respect of development expenditure.

Other gainers are the office of the registrar of political parties which has been allocated Sh324 million for pre-election related activities.

DPP got Sh200 million more whereas Sh330 million more would go to the Office of the Auditor General to bolster their operations.

However, a number of programmes have been suspended to release monies for the areas that need budgetary adjustments.

Top on the list is the Fisheries department, which is due to shed Sh4.7 billion whereas the Livestock department would make do without Sh1.2 billion.

Labour ministry has its budget reduced by Sh1.8 billion while the National Assembly has its budget reduced by Sh180 million.

Whereas the budget for Interior is increasing by Sh1.78 billion, policing services allocation has gone down by Sh1.5 billion. Prisons budget has also been slashed by Sh398 million.

The Energy ministry budget has also been raided with Sh1.3 billion cuts on alternative energy technologies “on account of budget rationalisation”.