Agencies of shame: How state departments spent Sh14 billion with no tangible results

Three key state agencies, including Public Works, East African Community (EAC) and Immigration and Citizen Services, are under scrutiny for spending over Sh14 billion in six months, yet their performance indicators show poor or stagnant service delivery.

A report by the Controller of Budget Margaret Nyakang’o has exposed significant inefficiencies in their expenditure, revealing that despite the massive allocation of funds, there is little to show in terms of tangible results.

“In the first half of the financial year 2024/2025, we noted instances of significant spending by MDAs without corresponding outputs or depressed service delivery. For example, the State Department for Public Works recorded a total expenditure of Sh1.34 billion but no outputs in the first six months of the financial year 2024/25, casting doubts on how the funds already spent were put to use,” Nyakang’o said.

The report further reveals that the State Department for Immigration and Citizen Services spent Sh12.66 billion during the same period, primarily on E-Citizen and immigration services, yet its actual service delivery remained below 35 per cent.

“However, actual outputs from delivery of services were below 35 per cent for all the programmes and sub-programmes it implemented in the period under review,” she noted.

Inconsistencies

The State Department for EAC was also flagged for inconsistencies between expenditure and output.

“Non-financial performance analysis indicated that no changes in actual outputs from service delivery have occurred,” Nyakang’o added.

The CoB report highlights a broader trend of excessive spending without corresponding service delivery across State agencies, at a time when Kenyans are grappling with a high cost of living, increased taxation, and growing concerns over government accountability in the management of public funds.

Nyakang’o has now called for stricter budget monitoring and adherence to results-based allocation of resources to enhance service delivery.

“The government must ensure continuous monitoring of budget implementation to align spending with tangible results,” she said.

The revelations come amid growing concerns over inefficiency in Kenya’s public service.

A 2023 International Labour Organisation (ILO) ranking placed Kenya’s public sector productivity at 155 out of 189 countries, while the Salaries and Remuneration Commission (SRC) has previously warned about the adverse effects of poor performance.

“The latest study identified inefficient service delivery; low productivity; and high operational costs as the impact of the inability to attract and retain specific skills in the public service,” former SRC Chairperson Lyn Mengich noted in her end-of-term report last year.

With the government shouldering a wage bill exceeding Sh1 trillion annually, pressure is mounting for reforms to ensure that public funds translate into measurable improvements in service delivery.

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