Controller of Budget rejects Sh58bn in spending requests by Ruto administration

A new report has revealed that the Office of the Controller of Budget (CoB) rejected key spending requests running into billions of shillings by President William Ruto's administration.

The report indicated the Controller of Budget Margaret Nyakang'o cumulatively, did not approve requests for spending of more than Sh58 billion by various government ministries, state departments and agencies that were subject to more funding during the review period.

The report revealed indicated CoB is yet to approve Sh700 million spent in the construction of a modern presidential dais at State House. The CoB also did not approve the Sh400 million that State House spent on the purchase of motor vehicles last July.

The report indicates that the CoB rejected, among other requests, Sh1.58 billion to cater to the facelift of the Kenyatta International Convention Centre. The request was made by the State Department of Tourism.

Nyakango's office has also not approved spending of Sh104 million to support the operations of the Trade Cabinet secretary.

There is also the expenditure of Sh1.14 billion to support the Integrated Financial Management Information System (IFMIS) department's operations, maintenance and implementation of projects that are not approved by the time of reporting.

According to the CoB, the Sh3.4 billion National Treasury used to pay pending bills and settle outstanding invoices under various projects has not yet been okayed by her office.

While it is indicated that the Treasury spent Sh10.9 billion to cater for the Kenya Revenue Authority (KRA) budget deficit, pending bills and additional funding for revenue mobilisation, only Sh1 billion has since been approved.

Controller of Budget Dr Margaret Nyakang'o (left) during the Integrated County Revenue Management System Implementation Committee meeting chaired by the National Treasury CS Prof Njuguna Ndung'u (centre) in Nairobi on February 26, 2024. (Photo: Controller of Budget)

In the detailed report, the Sh290 million request by the Medical Services department for the COVID-19 outbreak has not been approved, as well as the Sh450 million cash for VAT refund to the US Embassy.

Additional expenditure

The National Treasury, according to the national government budget review for the period covering July 1, 2023, to March 31, 2024, approved additional expenditure of over Sh66 billion.

Of the extra spending committed in the first nine months of the current financial year, the budget controller has given a nod to only Sh8 billion.

"The cumulative exchequer issues under Article 223 amounted to Sh8.27 billion, representing 0.2 per cent of the revised net estimates budget of Sh4.28 trillion appropriated by Parliament. The funded requisitions are only 0.3 per cent of the total approvals," the report indicates.

In her advice, Nyakang'o outlines that the National Treasury should request and get the approval of Parliament within two months after withdrawing the money, yet the new report shows some of the monies were spent as far back as last July.

"If Parliament is not sitting during the time or is sitting but adjourns before the approval has been sought, the approval should be sought within two weeks after its next sitting," Nyakang'o said.

"It would be prudent to confirm sufficient liquidity before approving Article 223 proposals from the Ministries, Agencies, and Departments (MDAs)."

Also rejected is President Ruto's office's request for Sh211 million to cater for pending bills in the construction of small claims courts. Another request of Sh150 million to facilitate the activities of the office of the Government Spokesperson – paid out in February - was rejected.

Aden Duale's Defence Ministry's spending of Sh200 million on operations to respond to El Nino rains is also yet to be approved.

At the Energy ministry, Nyakang'o refused to okay for Sh2.3 billion which was used to cater for a project connecting power between Kenya and Ethiopia. It is only Sh78 million, which the Treasury approved in September to cater for the Eastern electricity highway project, that has since been approved.

Cabinet Secretary Kipchumba Murkomen's Roads ministry had CoB reject its request for approval of Sh500 million to facilitate payment of pending bills for the Mwache-Mtenza road at the Coast.

On the education front, the Nyakang'o office did not approve a budget request of Sh200 million to cater for "Wings to Fly '' funding by Germany.