Top government officials gobbled up an extra KSh4.99 billion on rent, hospitality, and seminars in the year ended June compared to the previous period, defying calls to cut the wastage of taxpayer funds and ease pressure on the Exchequer.
Official data from the Controller of Budget (CoB) on government spending for the period show that the bill on the 3 items shot to KSh25 billion, a 24% jump from KSh20.01 billion spent in the year ended June 2022.
The rise defied the new administration’s calls to cut spending on non-critical items as Kenyans bear the brunt of increased taxation to raise more revenue to repay debt and fund development projects.
“Total expenditure by ministries, departments, and agencies (MDAs) was KSh8.64 billion where the Office of the President recorded the highest hospitality expenditure at KSh2.34 billion, followed by Independent Electoral and Boundaries Commission at KSh2.12 billion,” CoB Margaret Nyakang’o says.
An analysis shows that hospitality bills accounted for the biggest chunk of the increase with a rise of KSh2.37 billion to KSh8.63 billion in the period followed by training and seminars at KSh1.35 billion to KSh5.2 billion.
The spending on rent rose by KSh1.26 billion to KSh11.12 billion in the year ended June, as the Kenya Kwanza administration comes under increased scrutiny.
Faced with fast-maturing foreign and local debt, the Treasury has introduced new taxes such as housing levy besides increasing the rates on existing ones like the doubling of Value Added Tax on fuel to 16%, in a bid to raise more cash.
Debt servicing costs have been climbing in recent years after the grace period extended by rich countries, notably China, expired.
Repayments for loans that the Treasury has tapped in the local market are also falling due, further piling pressure.
President William Ruto had upon assumption to office in September last year disclosed plans to cut the budget deficit by reducing non-essential spending on travelling, advertising, and training.
In November last year, a schedule published by Treasury Cabinet Secretary showed that 100% of the remaining balances on foreign travel, training, and motor vehicle and furniture purchase budgets as of 30 September, 2022, would be slashed.
Back to sanity
Dr Ruto announced budget cuts to bring the country “back to sanity”, seeking to succeed where the previous administration had made an unsuccessful attempt.
The Treasury has over the years picked seminars, training, and hospitality as key avenues where taxpayer funds were wasted and unsuccessfully directed MDAs to cut spending on these items.
Increased spending on the items continues to hurt the Exchequer’s ability to free up funds for development given the huge expenditure on the servicing of foreign debt.
