Treasury under pressure to explain unresolved Sh17.23 billion three-decade debt
The Commission on Revenue Allocation has called for transparency on why the debt, incurred before 1997, remains unsettled.
The National Treasury is under renewed pressure over a Sh17.23 billion debt that has remained in government records for nearly three decades.
The Commission on Revenue Allocation (CRA) has called for transparency on why the debt, incurred before 1997, remains unsettled.
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Speaking before the Senate Finance and Budget Committee on Thursday, CRA Vice-Chairperson Koitamet Olekina questioned the prolonged delay in settling the debt.
He stressed the need for accountability.
"We should be told who we owe and why it is not being paid since it has remained in the government books for almost 30 years,” Olekina said.
He urged the committee to summon National Treasury Cabinet Secretary John Mbadi to explain the situation and outline steps being taken to resolve the matter.
The issue arises as Kenya's domestic debt continues to climb, reaching Sh6.02 trillion as of last month an increase of Sh1.7 trillion since William Ruto took office in September 2022.
Budget Policy Statement
The National Treasury is also grappling with concerns over Sh73 billion in the Budget Policy Statement (BPS) recently submitted to the National Assembly.
A letter dated February 25, 2025, from the Treasury to the National Assembly stated that the amount was allocated for the Social Health Insurance Fund under the State Department of Medical Services.
However, the letter noted that the funds were not reflected in the fiscal framework, creating a discrepancy between the stated Sh4.336 trillion and Sh4.263 trillion.
Documents tabled in Parliament confirmed the projected expenditure under the fiscal framework was Sh4.263 trillion, while the BPS listed Sh4.336 trillion.
National Assembly Majority Leader Kimani Ichung’wah acknowledged lawmakers flagged the discrepancy and sought clarification.
"I hope this letter clarifies the issue. We do not want another computer error," he said.
The National Assembly Committee on Finance and National Planning, during a recent meeting with Treasury officials, also raised concerns about the inconsistencies and demanded explanations.
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