Treasury CS Mbadi admits government wastage, promises procurement reforms
To curb these losses, Mbadi revealed that the government has adopted a zero-based budgeting approach, requiring justification for every expenditure instead of relying on previous budgets.
Treasury Cabinet Secretary John Mbadi has admitted that wastage of public resources remains a major problem in the government, citing procurement processes as a key area where funds are being lost.
This comes despite President William Ruto's pledge last year to cut unnecessary spending.
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Speaking during an interview with Spice FM on Thursday, Mbadi said addressing wastage is now a top priority.
"I cannot deny there is still wastage in the government, and one of the most critical steps for us now is having a procurement management system. That is where we lose a lot of resources alongside budgeting," he said.
To curb these losses, Mbadi revealed that the government has adopted a zero-based budgeting approach, requiring justification for every expenditure instead of relying on previous budgets.
Additionally, an online procurement platform is being introduced to enhance accountability and is expected to be fully operational by the start of the Financial Year 2025-2026.
"We are rolling out e-procurement, which I expect to start operating by the end of this quarter and effectively cover all government departments by July 1," Mbadi said.
"We have also moved to technical accrual basis accounting from cash basis to capture all government commitments and revenue and are also rolling out treasury singular accounts to avoid having several accounts," he added
The CS also defended the recent renovations at State House, the second major facelift in just over two years, which has raised concerns over excessive spending. He maintained that while the government is committed to cutting costs, the renovations were necessary.
"It had reached a point where State House was leaking. One can question the extent of the renovation, but you cannot question whether we needed a facelift of the facility. This is where we host all the international delegations," Mbadi said.
"We removed a lot of budget lines from State House in the current financial year, including the so-called confidential expenditure. What it generally has now are operations and administrations to help run presidential activities," he added.
The Controller of Budget (CoB) recently disclosed a Sh10.7 billion plan to refurbish state houses and state lodges over 12 years, ending in June 2027.
Records indicate that no money was spent between June 2024 and December 2024 following budget cuts ordered by the President after last year's protests against the finance bill.
However, renovations continued, and the newly revamped State House was unveiled last month. There are concerns that pending bills for the project may not yet be fully declared.
In FY 2022-2023, the State House spent Sh59.8 million, likely for the initial renovation works under President Ruto's administration.
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