2023-24 SUPPLEMENTARY II

Treasury paid out Sh9bn floods cash – report

Exchequer wants MPs to approve the additional allocations

In Summary

•Roads, Defence, and ASALs departments are among the recipients.

•Heavy rains have left more than 200 dead as of May 5, 2024.

Floods in Nairobi after a downpour on April 24, 2024.
Floods in Nairobi after a downpour on April 24, 2024.
Image: FILE

Several government agencies and departments have received up to Sh8.8 billion for flood emergency response as additional funding for this financial year.

Treasury has approached MPs to approve the allocations, some of which have been disbursed to the responsible state departments.

The second supplementary estimates for the current financial year reveal that the Arid and Semi-Arid Lands department has received a chunk of the cash at Sh4.3 billion.

“Allocation is for humanitarian emergency response intervention for people affected by floods and drought,” the estimates read, indicating most of the expenses as emergency response interventions on account of El Niño.

Heavy rains have left more than 200 dead, thousands displaced and property destroyed - some irreparably. 

To mitigate, the Treasury indicates that it has disbursed Sh2.3 billion to the Internal Security and National Administration department for the interventions.

At least Sh1 billion has gone to the Roads department, ostensibly for repair of roads damaged by floodwaters.

Estimates further show the Treasury has also disbursed Sh500 million to the Defence department for flood-related emergencies.

State Department of Cooperatives, the data shows, received Sh500 million in the increased allocations, which also saw the Crops Development department get Sh130 million.

Records show the Sh500 million for cooperatives would go towards El Niño emergency response and mop-up of excess milk. Another Sh510 million is yet to be disbursed.

Treasury said it disbursed Sh70 million to the Irrigation department, Sh30 million to Public Works and Sh35 million to the livestock department.

The flood monies are among the Sh34.9 billion extra spending by the Kenya Kwanza administration, which it wants MPs to approve.

The expenditure comprises Sh28.6 billion under recurrent and Sh6.4 billion under development, of which Sh19.3 billion has been disbursed.

Allocations for El Niño emergency response are among the disbursed funds, some of which have exceeded the set limit of 10 per cent for such increment.

“The National Treasury is therefore requesting for a special approval of the expenditure adjustments, which are beyond the 10 per cent threshold in accordance with PFM Regulations, 2015,” Treasury CS Njuguna Ndung’u said in a note to MPs.

Treasury data shows State House is among the beneficiaries of the extra budgets, with Sh1.2 billion already disbursed for operations and maintenance.

Police also got Sh2 billion paid up for their group personal accident and medical insurance cover, another Sh2 billion for policing services and Sh30 million to boost security operations.

The Kenya Revenue Authority received Sh4.7 billion, albeit the reason for the disbursement has not been stated in the estimates before MPs.

Kenya Railways, the estimates show, was handed Sh500 million as legal dues for arbitration case it was part of.

The Kenya Forest Service received Sh2.02 billion for meeting salary shortfall for its officers.

National Intelligence Service is also set for a Sh6 billion budget boost, which Treasury says is “on account of the increase for security operations”.

IEBC has been allocated an extra Sh51 million for boundaries review, but had Sh126 million trimmed from its electoral processes budget.

The documents indicate the Treasury has approved an additional Sh3 billion for the fertiliser subsidy. The money is yet to be disbursed.

It has also emerged that Kenya spent Sh60 million to host the 6th United Nations Environmental Assembly (UNEA) in February.

The estimates further reveal that the Deputy President’s office received an additional Sh463 million billed as for operations and maintenance and anti-drug abuse campaigns.

Prime Cabinet Secretary Musalia Mudavadi’s office got Sh171 million, at a time when state departments have suffered dramatic budget cuts.

Among the losers is the Education sector whose allocation was reduced by Sh4.1 billion and that of Irrigation department by Sh2.2 billion.

“The reduction is on account of budget rationalisation,” Treasury said in the notes accompanying the estimates.

TSC has also shed off Sh2.9 billion in the new budget where recurrent spending is up by Sh39 billion and development estimates cut by Sh84 billion.

Development has also taken a major hit with its allocation down by 13.5 per cent as that of recurrent increased by 9.9 per cent.

Treasury has defended the adjustments, saying they meet the threshold set in Article 223 of the Constitution, which grants use of monies before approval by MPs.

“The overall change in the national government ministerial budget excluding consolidated fund services from the original budget is an increase of Sh45.8 billion, which reflects a 1.9 per cent increase. This is within the provisions of Article 223 of the Constitution,” Treasury CS said.

Controller of Budget Margaret Nyakango and Auditor General Nancy Gathungu have over time raised concerns about abuse of the provision of the law on spending before approval.

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