Top state offices allocated Sh5 billion more for salaries, entertainment amid budget cuts

State House and the offices of Deputy President Kithure Kindiki and Prime Cabinet Secretary Musalia Mudavadi have been allocated an additional Sh5 billion for salaries, travel, and entertainment, despite ongoing efforts to cut government spending.

This is part of an extra Sh85.8 billion that the Treasury is seeking for the current fiscal year through a supplementary budget presented to Parliament on Tuesday.

State House will receive Sh3.8 billion, the largest share. The breakdown includes Sh1.5 billion under unexplained expenditures, Sh732.2 million for domestic travel, Sh700 million for salaries and perks, and Sh312.4 million for car maintenance.

DP Kindiki's office will get Sh420.4 million for salaries and travel, while PCS Mudavadi's office has been allocated an additional Sh133.4 million.

The increase in recurrent expenditure comes as the government pushes to limit non-essential spending like travel and entertainment amid a financial crunch caused by lower-than-expected tax revenues.

The situation worsened following the withdrawal of last year's Finance Bill, which had projected additional revenues of Sh345 billion.

"Since the approval of the FY 2024/25 budget, the National Treasury has received additional requests for funding to cater for emergency priorities and shortfalls under critical expenditures," Treasury Cabinet Secretary John Mbadi said in a notice attached to the supplementary budget.

"Included is additional expenditure to cater for salaries shortfall, security-related interventions, drought-related expenditures among other emergency priorities," he added.

Below target

Mbadi revealed that revenue collections were Sh62.8 billion below target in the six months leading to December, attributing the shortfall to reduced economic activity triggered by protests against the Finance Bill.

While budget allocations to education, security, and healthcare have been increased, spending on water, housing, and energy has been cut, pushing the overall budget size up by Sh85.8 billion.

This figure does not include Sh5.5 billion allocated to Consolidated Fund Services for debt repayment obligations.

The supplementary budget, tabled in the National Assembly, increases Kenya's total budget for the financial year ending June to Sh3.56 trillion from Sh3.47 trillion.

Former president Uhuru Kenyatta and former prime minister Raila Odinga are also beneficiaries of increased allocations. The office of retired presidents and deputy presidents has been granted an additional Sh88 million.

Kenyatta's office will receive Sh23 million for insurance, furniture, and general equipment, while Odinga's office will receive Sh20 million for insurance. An unnamed retired vice president has been allocated Sh25 million for similar expenses.

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The extra budget for State House Nairobi covers salaries, hospitality, and car maintenance. Permanent employees' salaries will rise by Sh375 million, while perks get an additional Sh325 million.

Domestic travel will consume Sh732.2 million more, with foreign travel receiving an extra Sh6.1 million. Car maintenance has been allocated an additional Sh152.1 million, and fuel and lubricants Sh160.3 million.

Other operating expenses for State House Nairobi have been granted Sh1.5 billion.

The overall budget for the State House will nearly double, reaching Sh8.1 billion from an initial Sh4.3 billion by June.

Meanwhile, the Office of the President, separate from State House, will see a Sh651.6 million increase for recurrent expenditures, including salaries in the Office of the Chief of Staff and Head of Public Service, as well as the Government Printer.

The Deputy President's office will also see an additional budget of Sh420.4 million, bringing its total expenditure to Sh3 billion, up from Sh2.59 billion.