Treasury Cabinet Secretary Henry Rotich on Wednesday made an admission that caught Members of the Senate by surprise.
Addressing a Senate Committee, Rotich admitted that the government had no money.
"The government has no money. We are broke," stated Rotich.
[caption caption="File image of Treasury CS Henry Rotich"]
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According to the CS, the government has resolved to deal with the issue by reviewing its expenditure by way of supplementary budget intended to review the Division of Revenue Act 2017.
Rotich noted that the revision of the act will lead to the reduction of money allocated to counties by Sh15 Billion.
He added that the lack of funds was caused by a shortfall in revenue collection in the past financial year.
Rotich explained that the shortfall was largely caused by the extended electioneering period and the drought that has slowed down businesses.
This report comes after the Auditor General Edward Ouko revealed that Sh10 Billion was wasted on unfinished government projects.
According to Ouko, nearly Sh1 Billion was spent on the renovation of two Kenyan embassies abroad, one which developed cracks soon after completion.
State House was also faulted for misappropriating close to Sh40.2 billion which is claimed to have been unaccounted for through confidential expenditure.
[caption caption="File image of Auditor General Edward Ouko"]
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