The National Treasury Cabinet Secretary, John Mbadi, has confirmed reports by the Controller of Budget (COB) that the Social Health Insurance Fund (SHIF) and the Housing Levy are not included in the Consolidated Fund.
Speaking during an interview on Citizen TV on Wednesday night, Mbadi confirmed the assertion but noted that it was all within the confines of the Constitution.
According to Mbadi, the Constitution stipulates that all money raised or received by the national government be directed to the Consolidated Fund unless there is another fund set for a specific purpose.
"We have a Constitution that I helped prepare for the Public Finance Management Act that we have today. That Act, together with the Constitution, says that all moneys collected and raised on behalf of the people of Kenya shall be deposited into the Consolidated Fund except and unless the same has been directed to a fund created for a purpose," Mbadi stated.
"The law allows you to create a fund and channel resources to that fund without the funds going to the Consolidated Fund. The fund is also audited."
Mbadi added that the government had several kinds of funds, not just the two. These included the Road Maintenance Fund, or the fuel levy, as it is widely known.
Ultimately, he concluded that none of this indicated fraudulent activity in the National Treasury unless the money expected to be directed to this fund was misappropriated.
Furthermore, he invited the COB and the Auditor General to audit both funds to clear Kenyans' doubts on the matter.
"I want the CoB to tell Kenyans that, yes, you set up this SHIF. This money was supposed to come to this fund but it did not come, or it came and was misappropriated. That is why we have independent offices," Mbadi stated.
"I would expect the independent offices, including the Auditor General and the COB, to discharge their responsibilities. The COB’s responsibilities are limited to withdrawals from the Consolidated Fund. It is the people of Kenya who decide to create the law and the Constitution."
Since its implementation in October 2024, SHIF has faced several obstacles, including Kenyans failing to register as required and most opposing it.
Although this has been the case, the most damning revelations came from a recent COB report, which alleged that the money remitted by Kenyans for the service was not being directed to the Consolidated Fund as required, raising eyebrows across the country.
