MPs probe Transport Department over budget implementation, parastatal overspending

The National Assembly. (Photo: Institute of Economic Affairs)

By Maureen Kinyanjui
Wednesday, October 8, 2025

For the financial year, the Department received a total budget of Sh48.036 billion, with Sh18.72 billion earmarked for recurrent expenditure and Sh29.316 billion for development.

Members of Parliament have raised concerns over how the State Department for Transport managed its 2024/2025 budget, highlighting low absorption by some agencies and overspending by major parastatals.

Principal Secretary Mohamed Daghar appeared before the National Assembly Transport and Infrastructure Committee, chaired by Ndia MP George Kariuki, to explain the department’s financial performance.

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Daghar told MPs on Tuesday that the department is implementing the Millennium Challenge Corporation (MCC) Threshold Programme through the Kenya Millennium Development Fund (KMDF), set up under the Public Finance Management Act.

He noted that the programme has faced delays due to changes in the United States’ foreign funding policies.

He also briefed MPs on the Northern Corridor Transit and Transport Coordination Authority (NCTTCA), a regional body promoting cross-border transport cooperation, which the department coordinates.

For the financial year, the Department received a total budget of Sh48.036 billion, with Sh18.72 billion earmarked for recurrent expenditure and Sh29.316 billion for development.

Of this, Sh33.413 billion was spent, sSh14.039 billion on recurrent activities and Sh19.374 billion on development, representing absorption rates of 75 per cent and 67 per cent respectively.

Daghar added that total revenue for the Department was approximately Sh33.5 billion, drawn from the exchequer, donor contributions, and appropriations in aid.

State corporations under the Department reported recurrent expenditure of Sh186.954 billion against a Sh187.925 billion budget, achieving an overall absorption rate of 99 per cent.

However, the PS revealed that the Kenya Ports Authority (KPA) and Kenya Airports Authority (KAA) exceeded their approved budgets by 6 per cent and 2 per cent, respectively.

This prompted strong reactions from MPs, with Chair George Kariuki calling for the matter to be raised on the House floor to enforce strict compliance with the law.

Kipkelion West MP Kibet Komingoi questioned why the National Transport and Safety Authority (NTSA) absorbed only 75 per cent of its allocation and recommended that the agency’s budget be rationalised.

In response, Daghar requested a chance to return with the NTSA Director General to provide full justification for the agency’s funding needs, citing several major projects in the pipeline.

On the issue of KPA and KAA overspending, he acknowledged the oversight, explained that operational demands influenced the decision, and pledged to ensure parliamentary approval is sought for future expenditure.