Sh18 billion ‘spent on State trips’

The Treasury Building in Nairobi. A staggering Sh18 billion has been spent by the government on domestic and foreign trips over the last nine months, says Controller of Budget Agnes Odhiambo. FILE 

By GRIFFINS OMWENGA gomwenga@ke.nationmedia.com

May 21   2013 

In Summary

• Energy, Infrastructure and ICT sectors were the most affected owing to low absorption of funds allocated to the respective ministries. They incurred a total expenditure of 57.2 billion by March 2013 against a target of Sh104 billion, representing an absorption rate of only 58 per cent .

A staggering Sh18 billion has been spent by the government on domestic and foreign trips over the last nine months, says Controller of Budget Agnes Odhiambo.

In a report, Ms Odhiambo says the funds were used by ministers, government agencies, departments and other government officials between July 2012 and March this year.

“This is a substantial amount allocated to these activities, some of which may not be directly contributing to economic development,” says the budget implementation review report.

The report indicates that the Treasury disbursed Sh151.4 billion for development against Sh416.7 billion allocated for recurrent expenditures by various ministries— a bulk of which goes to salaries and other overhead expenses.

Energy, Infrastructure and ICT sectors were the most affected owing to low absorption of funds allocated to the respective ministries. They incurred a total expenditure of 57.2 billion by March 2013 against a target of Sh104 billion, representing an absorption rate of only 58 per cent .

“The Office of the Controller of Budget has noted the continuous low absorption of the allocated resources especially development funds,” says Ms Odhiambo in the report, adding that the office is compiling data on items, services and functions that should be discarded.

She calls on the government to rationalise expenditure on such activities as hospitality, domestic and foreign visits.

The Controller of Budget is constitutionally mandated to submit a report on budget implementation by the national and county governments to the Executive and Parliament on a quarterly basis, this being the third quarter and less than two months away from the end of the financial year 2012/13.

Ms Odhiambo also says that the implementation of the budget was greatly hampered by the March 4 General Election, which slowed economic activities and led to revenue loss.

“The report has been produced at a time when the country’s economy is experiencing a slow-down attributed to a shortfall in revenue collection and anxiety associated with the General Election,” she says.

The World Bank, in a report dubbed Kenya at Work, estimates that Kenya’s economy will grow by five per cent this year— a few points behind the overall East Africa’s economy projected to grow by 6.1 per cent.

The Treasury received Sh737.6 billion between the period July 2012 and March 2013 against a target of Sh900 billion, missing the target by over Sh163 billion.

Out of these, Sh416 billion went to the recurrent expenditure while Sh151 billion was directed towards funding development projects in the nine months to March 2013. The highest allocations went to the Education, governance and public administration departments, which received Sh164 billion, Sh107 billion and Sh72 billion, respectively.