Govt Sneaks Ksh3.3B Expenditure in Covid-19 Budget

by John Paul Simiyu on Thursday, 23 April 2020 - 10:27 am

President Uhuru Kenyatta addressing the nation from State House Nairobi on April 6, 2020. He issued new directives regarding the government's move to combat Covid-19.

PSCU

The government is on the spot for apparently sneaking a Ksh3.5 billion unrelated expenditure into the Covid-19 supplementary budget.

According to a report by Business Daily on Thursday, April 23, the government allocated Ksh1.5 billion to the Nairobi Metropolitan Services (NMS) and Ksh1.8 billion for the rehabilitation of the Nairobi-Nanyuki railway in the budget.

Both these projects were reportedly not factored into the 2019/2020 budget but made an appearance in the supplementary budget set apart to cushion Kenyans against the ravaging effects of the pandemic.

A report by the Parliamentary Budget Office (PBO) notes that the National Treasury violated Article 223 of the Constitution and Section 44 of the Public Finance Management (PFM) Act by introducing the projects.

National Treasury Cabinet Secretary Ukur Yatani (Right) and Labour Cabinet Secretary Simon Chelugui (Left), at NSSF building in Nairobi on January 16, 2020.

File

Article 233 of the Constitution allows the government to spend money that has not been appropriated for if the money already appropriated for the purpose is insufficient or a need has arisen for a purpose for which no money has been appropriated.

The government is supposed to seek the approval of the National Assembly for any such expenditure, after which an appropriation bill shall be introduced for the appropriation of the money spent.

The PBO, which advises Parliament and its committees on fiscal matters, presented its report to the Budget and Appropriations Committee (BAC) that is scrutinizing the supplementary budget.

It urged the members of the National Assembly to act appropriately given that the decision by the government was in breach of the constitutional provisions.

“It is imperative to note that the Public Finance Management (PFM) Act prohibits introducing new programmes at the supplementary stage,” the PBO report states.

The report also called for the MPs to ensure that the revised budget is in conformation to the Constitution and the Public Finance Management Act.

This, PBO stated, was to avoid court battles that could follow in the event that the budget is passed as is.

While the Covid-19 is an emergency that may have not waited for MPs to appropriate funds, the allocation of Ksh1.5 billion to the Nairobi Metropolitan Services (NMS) under the Presidency, is a project that is not related to the fight against the pandemic.