Treasury

The committee claims that one of the former Permanent Secretaries in the Energy Ministry fast-tracked the approval of the agreement, despite concerns raised by the National Treasury in 2009.

The committee reinstated last year's allocation of Sh385 billion and added Sh2 billion to reach the agreed amount.

The spent funds are contrary to previous assurances that taxpayer funds would not be used to finance the mission.

Responding to criticism over the reduced allocation, the CS highlighted the reluctance of many to pay taxes while demanding more government funds.

Mary Chebukati, CRA chair, said a new funding formula was set to be finalised by July this year, but budget cuts—spurred by the withdrawal of the contentious 2024 Finance Bill—have stalled progress.

Committee Chairman Jared Akama reiterated the necessity of establishing the residence to avoid audit queries.

The impasse arose when MPs approved Sh380 billion for county allocation, contrary to the Senate's initial request of Sh400.1 billion.

As a result, delays in obtaining essential documents are likely to worsen, compounding issues already experienced in recent months.

This decision comes after significant intervention from Parliament and the Higher Education State Department.

Currently, the agency's budget has dwindled to a mere Sh20 million, a stark reduction that threatens to undermine ADAK's critical functions.

A source familiar with the discussions informed Reuters that the Kenyan government was nearing an agreement on this commercial loan.

The approval paves the way for Jamie Dimon, the bank's CEO, to visit Kenya as part of a tour spanning four African nations.

The shilling has been range-bound for several months, following a rally earlier this year after the government issued a new Sh222 billion ($1.5 billion) Eurobond.

The committee, chaired by Bumula MP Jack Wamboka, instructed Gathungu to review the university's financial dealings over the past five years and submit a report within 60 days.

Mbadi criticised county bosses for hiring multiple advisors and assigning them to roles that he described as redundant, draining resources that could otherwise be put to better use.

The decision to adopt the accrual-based system was approved by the Cabinet on March 7, 2024, following recommendations from the National Treasury.

He acknowledged that the transfers should ideally be done by the fifth of every month but explained that various issues had caused delays.

He emphasised the importance of maintaining unity between Raila and Ruto, stating, "We must choose our friends."

Treasury Cabinet Secretary John Mbadi clarified that the reports were false and misleading. 

The financial deadlock had left all 47 counties without essential disbursements leading to economic strain impacting vital services and development projects.

Thousands of young protesters took to the streets in Kenya's major towns in June to oppose proposed tax hikes in the now-shelved Finance Bill 2024.

The Council of Governors emphasised that the delayed release of funds was worsened by reduced revenue allocation due to the withdrawal of the Finance Bill, 2024, which it warned will have significant consequences.

The approval comes barely a month after Adani Airport Holdings Limited (AAHL), an arm of the Adani Group, proposed to invest Sh238 billion (US1.84 billion) to expand and run the Jomo Kenyatta International Airport (JKIA).

"Those issues around Arror and Kimwarer and such-like projects will not happen during my tenure," he vowed.

The Treasury argues that it is logistically and practically unfeasible to immediately revert to the Finance Act 2022 due to the complex system and software requirements involved.

The budget cut for TSC was among austerity measures taken by the Treasury after the withdrawal of the contentious Finance Bill 2024 which sparked countrywide protests led by youths opposed to the increase of taxes at a time when Kenyans are facing a high cost of living.

Treasury CS nominee John Mbadi is set to join Cabinet at a time when the government is facing protests triggered by the withdrawn Finance Bill.

She, however, noted that review for other public officers at the lower level will continue taking into account the existing contractual agreements.

He criticized the government's plan to replace the NHIF with the new Social Health Insurance Fund (SHIF), with Kenyans being urged to register with the latter.

Through the CoG Chairperson Anne Waiguru who led the governors in a meeting in Nairobi, the county governors regretted the move, terming it as one that undermines the spirit of devolution.