MPs split over extra Sh3.4bn for President Ruto, DP Gachagua
Budget and Appropriations Committee chairperson Ndindi Nyoro.
What you need to know:
- The mini-budget saw State House get an additional Sh2.6 billion on top of the Sh7.3 billion passed in June.
- The Office of the Deputy President got an increment of Sh759.5 million above the Sh3.5 billion allocated in the main budget.
Members of the National Assembly were on Tuesday sharply divided over the extra Sh3.4 billion allocated to State House and the Office of the Deputy President in Supplementary Budget I of the 2023/24 financial year.
Budget and Appropriations Committee chairperson Ndindi Nyoro (Kiharu) defended the allocation and urged his colleagues to approve the Supplementary Appropriations Bill 2023, saying the increased budget will allow the President to have more meetings, and have a pavilion built.
Although the House went on to approve the allocation, MPs Irene Mayaka (nominated) and Ms Zamzam Mohammed (Mombasa) raised concern over the additional allocation, saying it was insensitive in the current economic situation.
Ms Mayaka said that the country is experiencing extraordinary times “which means we need to make extraordinary decisions.”
“For me, if we must have meetings, then why don’t we have online meetings to save more money? I think that the amount allocated is too much,” she added.
The mini-budget saw State House get an additional Sh2.6 billion on top of the Sh7.3 billion passed in June. Of the additional budget, Sh2.16 billion is recurrent while Sh481 million is for development expenditure.
The Office of the Deputy President got an increment of Sh759.5 million above the Sh3.5 billion allocated in the main budget.
“While the increase towards agriculture will spur production, the enhancement for State House and Office of the Deputy President is needless. Kenyans are suffering,” said Ms Mohamed.
Even as Mr Nyoro rallied his colleagues to approve the mini budget, he admitted that his committee is concerned that if the underperformance of revenue persists and expenditures are maintained as proposed, then the fiscal deficit may be higher.
“This will result in higher borrowing even as the country tries to address the high debt burden,” Mr Nyoro said in the committee’s report.
The committee was also apprehensive that the reduction in development spending will “invariably lead to slower project implementation, higher project costs, further accumulation of pending bills and delayed returns on investments”.
The committee’s report notes that the fiscal deficit has increased from Sh718.9 billion, about 4.4 per cent of GDP, to Sh861.3 billion, which is 5.3 per cent of GDP, indicating a deviation from the fiscal consolidation path set at the beginning of the financial year.
The changes in the supplementary budget saw the education sector get additional funding, including Sh4.8 billion for technical and vocational education and training, Sh3.5 billion for the University Funding Board, Sh10.2 billion for the Higher Education Loans Board, Sh5.5 billion for junior secondary and Sh19.7 billion for the Teachers Service Commission.
In the agricultural sector, an additional Sh2.1 billion will go towards purchase of dryers and storage equipment to minimise post-harvest losses, Sh8.25 billion for fertiliser subsidy, Sh4 billion for coffee farmers Sh1.7 billion to support sugar farmers through settlement of debts owed.
As State House got more funding, the Roads department, Managed Equipment Services, Housing Development Fund and Integrated Regional Development Authorities had their budgets cut.
