Semi-Autonomous Government Agencies (SAGAs) under the state department of Planning face tough times ahead following a reduction of their budgets
Submissions to the Finance committee show that the entities that fall under the National Treasury, saw a budget cut of Sh4.8 billion from the Sh69.3 billion proposed in the Budget Policy Statement.
Economic Planning Principal Secretary, James Muhati while appearing before MPs, said that the reduction in the 2024-2025 financial year estimates will have a direct and negative impact on their ability to deliver on core mandates.
The Planning department's annual estimates for the upcoming financial year totals to Sh64.466 billion comprising of Sh2.991 billion Recurrent Estimates and Sh.61.47 billion Development Estimates.
Initially, an allocation in the approved 2024 Budget Policy Statement (BPS) Ceilings amounted to Sh69.294 billion made up of an allocation of Sh4.174 billion for Recurrent Estimates and Sh65.119 billion for Development Estimates.
“The financial year 2024-25 recurrent estimates allocation has been reduced by 52 per cent from the 2024 BPS Ceiling or 56 per cent from the FY 2023-24 approved estimates while the Development Estimates have decreased by 75 percent from the 2024 BPS Ceiling and FY 2023/24 Approved Estimates,” said Muhati.
The move will see wages and salaries, allowances including benefits in kind, gratuities, superannuation or pension schemes hit to a tune of Sh334.6 million.
"The FY 2024/25 allocation totaling to Sh460 million is sufficient to cater for the current in-post," the SDEP said in its submissions.
According to the PS, in order to adequately deliver the planning function, the State Department needs to strengthen its human resource capacity through among other measures recruitment, promotions and motivation of staff.
To achieve this SDEP requires additional funding of Sh225 million for recruitment and promotions and another Sh109.6 million for provision of extraneous allowance to staff.
Muhati told the Kimani Kuria led committee that the annual requirement for SDEP totals Sh1.01 billion adding that the current shortfall will reduce the total allocation of NG CDF to constituencies by Sh2.3 billion.
The agencies likely to be affected are Kenya Institute for Public Policy Research and Analysis (KIPPRA), Vision 2030 Delivery Secretariat (VDS) and National Government Constituencies Development Fund (NG-CDF) Board.
Others are Kenya National Bureau of Statistics (KNBS), National Council for Population and Development (NCPD) and New Partnership for African Development (NEPAD) and Africa Peer Review Mechanism (APRM).
In a bid to cut on the expenditures, the committee chair sought to know from the PS why the absorption rate in some of the SAGAs under the state department were low while others had overshot their budget.
This is after it emerged that the entity has spent 73 per cent of its development budget, lower than the 75 per cent that should have been utilised by the third quarter of the financial year.
The PS noted that some of the projects are undertaken jointly by the regional bodies and international donors and partners.
He said for KNBS, the budget shortfall will hinder critical activities with a direct impact of Sh100 million on core mandates.
A further Sh125 million on lease and rent, Sh103 million on staff insurance, Sh10 million on asset insurances, Sh10 million on general maintenance, Sh28 million on licenses and internet, and Sh4 million on part of board expenses will be cut.