Splurge: Sh200m for IEBC interviews, Sh150m for Madaraka Day

The government has allocated hundreds of millions of shillings to non-core government businesses in what might be seen as lavish spending in the face of difficult economic times.

Budget documents tabled in Parliament show that the government has allocated Sh200 million for the IEBC hiring panel.

A further Sh650 million has been allocated for parliamentary furniture, while Sh150 million has been earmarked for Madarak Day celebrations.

The seven-member panel recruiting IEBC commissioners are expected to finalise their assignment in less than two months. 

It remains unclear from the budget books what the Sh150 million for the holiday would be spent on.

The Madaraka Day celebrations, Ruto's first, will be hosted in Embu county on June 1.

The government has further allocated Sh300 million for unspecified works at the new Parliament office block  known as Bunge Tower.

The Budget and Appropriations Committee indicated the money would go into the furnishing of committee rooms at the block which has been under construction for the past 10 years.

The money would be used to facilitate departmental and audit committees to set up the rooms for conferencing – installation of audio systems.

It would also go into acquiring office furniture and fittings, for hospitality, and for the purchase of office equipment.

According to the documents, State House is tipped to get an additional Sh300 million with another Sh150 million allocated for the office of Deputy President Rigathi Gachagua.

The amounts are over and above Sh200 million taxpayers had already paid towards the refurbishment of State House.

Treasury had also disbursed Sh264 million to the Deputy President’s office for “implementation of urgent services”.

The Azimio brigade has criticised the new administration saying it was playing lip service on its commitment to reduce the budget deficit and cut government spending.

Nominated MP John Mbadi, who is also chairman Public Accounts Committee, said there were no indicators to back up Ruto’s claim that he had steadied the economy.

“The fiscal deficit has not decreased. It is rhetoric and the same old story. We are overspending as a nation and we are spending money which we don’t have,” Mbadi said.

The BAC report shows that Ndindi Nyoro’s team approved Sh120 billion in additional spending made under Article 223.

“Ruto said expenditure is going to be cut by Sh300 billion in the budget for the financial year 2022-23. Kenyans expected to see budget cut of Sh300 billion. The question is, do we have the cut? No,” he said.

Mbadi added, “I expect the President to stand again and tell the people of Kenya that it was not possible to reduce the budget by Sh300 billion, we must hold our leaders to account for what they tell the public.”

Whereas the President announced that he aimed at reducing this year’s budget by Sh300 billion, only Sh14 billion has been saved.

Overall, this year’s budget is up by Sh9 billion, with an increase in recurrent expenditure by Sh93.5 billion and development spending by Sh84 billion.

Among those affected are the budget for insurance coverage for the police by Sh1 billion, Sh1 billion for Kenya Airways, and Sh3.5 billion equalisation fund.

Roads budget has been slashed by Sh47.1 billion, Sh29 billion in respect of power projects, and Sh10 billion for water and sewerage projects.

MPs have proposed an additional Sh55 billion that ministries, state departments and agencies sought to be factored into next year’s budget.

But Majority leader Kimani Ichung’wa rebuffed the assertions saying the President’s team has done better than the previous administration, citing the current allocations which are largely towards development.

He said that contrary to assertions by the Azimio brigade, the new budget is better positioned to meet the needs of Kenyans.

“Facts about fiscal consolidation are contained in the report. The case is the budget deficit has been reduced from 6.7 per cent which the Treasury agreed upon with the IMF to 5.7 per cent,” Ichung’wa explained.

Ruto’s team has set aside an additional Sh1.2 billion for security operations and Sh300 million to Defence ministry for humanitarian activities.

Some Sh600 million has been provided for the “exploitation of living resources in blue economy” and Sh300 million for Kenya Forest Service for fire fighting.

In line with his housing plan, Ruto’s administration has set aside Sh1.5 billion as seed money for housing units in 290 constituencies.

“The aim is to create homeowners at the local level,” BAC said in its report adopted by MPs on Tuesday.

Another Sh500 million has been provided to the Independent Electoral and Boundaries Commission for settling legal pending bills.

New KCC is also a top beneficiary with over Sh700 million for modernisation (Sh200 million) and mopping up excess milk (Sh500 million).

Roads contractors are tipped for a boost with the Sh10 billion provided for pending bills while some Sh12 billion will go to the annuity funds.

Kenya Kwanza seeks to purchase ferries for Lake Victoria at Sh300 million, provide Sh200 million for secondary schools’ infrastructure, and Sh500 million to augment a polish milk coolers project.

The National Irrigation Authority has been provided an additional Sh800 million for drought mitigation and for the construction of household water pans.

In related interventions, Ruto team has allocated Sh500 million to the Tana River Development Authority for rice irrigation in Tana River.

Another Sh650 million has been set aside for the Sioyi Muruny dam project and Sh200 million for Lake Basin Development Authority for water pans.

BAC has provided Sh2.9 billion for the NG-CDF, Sh1.3 billion for the export processing zone in Athi River, and Sh225 million to upgrade infrastructure facilities at the Kenya Water Institute.

The National Intelligence Service has also had its Sh10 billion budget which was slashed in the supplementary reinstated, albeit to be paid in next year’s budget.

-Edited by SKanyara