Ruto team failed to disburse Sh244bn to ministries, counties

Documents obtained by the Star indicate that the government did not remit 31 per cent of the development vote to ministries and government agencies by close of the financial year on June 30, 2024.

This represents Sh137.47 billion of the total development budget.

The National Treasury also failed to release Sh74.79 billion to the ministries, departments and agencies for recurrent expenses during the year.

Further, Treasury did not send Sh32 billion to the county governments.

The outstanding disbursement to the devolved units represents eight per cent of their annual allocation of Sh385 billion.

Ordinarily, and according to the law and cash disbursement schedule approved by the Senate, counties should have received the entire disbursement before closure of the financial year.

The revelations mean that several life-changing projects planned and budgeted for by both the national and county governments were either abandoned or stalled in the last financial year.

Some of the affected ministries include Roads and Transport. 

The documents show that some state agencies such as the Gender and Equality Commission and State Department of Shipping and Maritime did not receive a penny for development during the year under review.

Some agencies received less than 10 per cent of their development budget.

For instance, the office of the Auditor General received only 9.8 per cent.

The State Law Office received Sh31.49 million out of a budget of Sh175.50 million, while the Department for Devolution, Investment and Mining received 29.4 per cent, 22.8 per cent and 23.3 per cent respectively.

Other departments and agencies that received a relatively small percentage of their development votes are Macro, Small and Enterprises Development (29 per cent), Labour (42.2 per cent) and Cooperatives (36.9 per cent).

It is unclear whether the Treasury failed to release the funds due to cash flow challenges or graft and extravagance believed to be synonymous with the regime took a toll on the revenues.

Political observer Charles Munyui said the government is not broke but is facing cash flow challenges because of its excesses.

“The government should tighten its belt. It should cut down on things that do not make sense and focus on crucial ones,” he said.

Last year, the government introduced a raft of taxes and levies despite rejection and protests by the majority of Kenyans.

Some Kenyans challenged the taxes in court, but the government manoeuvred its way and effected the taxes.

They include the controversial housing levy and 16 per cent VAT on petroleum products that saw the prices of paraffin, petrol and diesel hit record highs.

According to the documents, the State Department of Transport, which carries out mega development projects, received Sh2.84 billion from a revised budget of Sh4.79 billion.

The Department for Roads received Sh40.58 billion out of a total annual budget of Sh63.27 billion.

This implies that road projects worth Sh22.69 billion were either not undertaken or stalled across the country.

The Executive Office of the President received Sh597.42 million or 85.7 per cent of its development budget.

The office of the Deputy President got Sh23.05 million out of a total budget of Sh400.4 million.

State House received 99.4 per cent of its development budget or Sh1.3 billion mainly for refurbishments.

Only the departments of Internal Security and National Administration, and Trade got their full development allocation.

During a televised interview last week, President William Ruto painted a picture of a broke administration, largely surviving on debt.

“We are in a very difficult financial position. That is something that the people of Kenya must understand,” the President said.

He explained that the country raised Sh2.3 trillion from taxes in the last financial year. Out of the amount, Sh1.1 trillion went to debt financing and Sh1 trillion went to salaries.

“We had to go and borrow to pay the counties. We had to go and borrow to fund our Judiciary,” he said.

The President added that the government will be forced to borrow at least Sh1 trillion in the current to finance its activities for the year.

The country’s debt stock currently stands at more than Sh11.5 trillion, with the state forced to spend more than Sh1 trillion every year to repay§.

But economic observers say the cash crisis in government is a self-inflicted problem.

According to International Centre for Policy and Conflict executive director Ndung’u Wainaina, the problem is corruption, wastage and excesses in government where state officers enjoy opulent lifestyles, drive guzzlers and engage in endless trips.

“Kenya’s economic troubles are largely due to the country’s politicians’ penchant for overspending,” he said.

Wainaina said the country’s political system has not been directed towards serving and uplifting the Kenyan people.

“Instead, the overriding objectives of politicians have been winning elections, staying in power, and enriching themselves and their cronies—no matter the financial cost to the state.”

On Friday, the President announced a raft of changes in government in a bid to cut spending to free cash for essentials.

He announced the scrapping of 47 state agencies, reduction of the number of advisers by half, and froze the purchase of new motor vehicles except for security agencies, for one year.

He also suspended non-essential travel by government officers, reduced confidential votes by 50 per cent and removed budgets for offices of first and second ladies and that of the Prime Cabinet Secretary’s spouse.

“We are determined to carry out these and other changes to improve the quality, efficiency and transparency in serving the people of Kenya and ensure that citizens receive maximum value for their resources from a public sector that prioritises their welfare,” he said during a press conference at State House.

For the last three weeks, youthful Kenyans have protested against the excess in government and pushed the President to swing into action.

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