Wasted billions: How President Ruto's administration spent Sh54bn of taxpayers' money

Kenyans spent at least Sh54 billion in the Financial Year 2023/24 to fund eight wasteful areas of President William Ruto’s administration.

Among sectors where taxpayers' money was aimlessly spent include domestic and foreign travel, purchase of vehicles, servicing of vehicles, fuel and lubricants, hospitality supplies and services, office furniture, training expenses and government institutions whose functions overlap.

Fuel and Lubricants

State House and the Executive Office of the President are reported to have spent Sh980 million on fuel and lubricants, using up to 1.6 million litres as the President and his team travelled across the country.

This expenditure was more than double the Sh179 million allocated to the Ministry of Interior, which includes the National Police Service and local administration, for the same purpose.

The Executive fuel expense was high despite the Ministry of Interior and other institutions having the option to purchase fuel under their “other operating expenses” budget lines.

“The expenditure for the President’s movements was twice the allocation for security agencies, highlighting a significant disparity in fuel costs,” as reported by Daily Nation.

Additionally, DP Rigathi Gachagua's office alone received Sh141 million for fuel and lubricants during the year under review.

Hospitality Supplies and Services

Under the hospitality supplies and services, the report notes that the entire government was allocated Sh6 billion.

In the 2023/24 budget report, the allocations specific to hospitality totalled Sh3.7 billion. However, the actual figure was higher as some institutions spent on that vote using their allocations for "other operating expenses".

However, the State House and the Executive Office of the President spent Sh1.275 billion for hospitality supplies and services which represents 21 per cent—nearly a quarter—of the entire government's hospitality budget.

State House received Sh885 million for hospitality, while the Executive Office of the President was allocated Sh390 million.

In comparison, the Ministry of Interior, which was led by Kithure Kindiki, was the second-highest spender on luxury items, with an allocation of Sh790 million. DP Gachagua's office ranked third, receiving Sh394 million for hospitality.

Vehicle Servicing

The report also highlights that allocations for vehicle servicing amounted to Sh358.5 million, but many institutions spent additional amounts under their operating expenses budgets.

The Deputy President’s office received Sh97 million, the highest allocation for this category.

Deputy President Rigathi Gachagua (left) and President William Ruto at the Kenya Kwanza PG meeting at State House on June 18, 2024. (Photo: PCS)

“This was Sh10 million more than the Interior Ministry, whose allocation includes servicing of vehicles for police and local administration officers,” as reported by Daily Nation.

Communication Equipment and Services

According to the report, several departments in State House got allocations for purchasing equipment like cameras, despite the Presidential Communication Service (PCS) handling public communications for State House.

State House Nairobi had the highest allocation with Sh40.8 million. Additionally, the Office of the Council of Economic Advisors alone received Sh9.4 million, surpassing the Sh7.2 million allocated to the PCS.

The office of the national security advisor to the President, also got a higher allocation than the PCS, with Sh8.2 million for the acquisition of communications equipment and services.

Others that received similar allocations are the Office of the First Lady (Sh2.8 million), Office of Fiscal Affairs and Budget Policy (Sh3 million), Office of the Secretary to the Cabinet (Sh3 million), Office of the Council of the Climate Change Advisor (Sh1 million) and the Policy and Research Analysis department (Sh81,850).

In total, State House was allocated Sh87.5 million for the acquisition of communication equipment and services.

Overlapping Roles

The report also revealed that the establishment of two new departments—the Office of the Council of Economic Advisors and the Office of Economic Transformation, by President Ruto had overlapping functions, leading to inefficiencies.

The two departments, tasked with helping Ruto bring to reality his Bottom-Up Economic Transformation Agenda have over the years received funding of nearly Sh1 billion despite having nearly similar functions.

In the FY 2023/24, the Office of the Council of Economic Advisors was initially allocated Sh182 million, while the Office of Economic Transformation got Sh323 million.

The findings come as President William Ruto seeks to reduce waste and overhaul budget allocations following public outcry and anti-government protests.

Ruto vowed that his administration must completely tame wastage if it is to meet its 2024-25 budgetary plans.

The 2024-25 budget was to be funded through additional revenue measures amounting to Sh344.3 billion contained in the Finance Bill 2024, which Ruto declined to assent to, following protests by the public.

Under the new estimates, the Treasury has proposed to cut national government ministerial expenditure by at least Sh156.4 billion to Sh2.2 trillion, with development estimates expected to go down to Sh623.9 billion from Sh746.3 billion.

The budget cuts, which are expected to hard-hit development, mergers of state agencies with duplicating roles, and reduced allocation to counties are some of the measures in President Ruto’s plan to “live within means.”

The National Treasury and National Assembly are now under pressure to align future budgets with the President’s directive to cut non-essential spending.