October 3, 2024

Kenya: Govt Austerity Order Clash With Travel Spending Trend – COB

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Nairobi — The government blew Sh 27.34 Billion on local and foreign travel in the last financial year posing a significant increase with the latter registering a 45 per cent increase between FY 2022/23 (Kshs.6.33 billion) and FY 2023/24 (Kshs.9.19 billion).

A report by the Controller of Budget has revealed how the government spent Kshs.18.15 billion for domestic travel and Kshs.9.19 billion for foreign travel, respectively despite an austerity order issued to Ministries and Parastatals.

An analysis done by the Controller of Budget Margaret Nyakang’o on foreign travel showed huge budget spending within the government showcased State Department of Foreign Affairs and National Assembly having gobbled majority of their budget.

In some Ministries and State Department they failed to submit detailed breakdown on the foreign expenditures.

“In FY 2023/24, some MDAs did not submit a detailed breakdown of foreign travel expenditures. Further, there were discrepancies in the amount reported on foreign travel by economic line vis-a-vis the detailed breakdown,” Nyakang’o stated.

The breakdown shows the State Department of Foreign Affairs spent Sh 3.2 Billion, Parliament Sh 2.7B ,State Department Diaspora Affairs Sh 484Milion and Statehouse gobbled Sh 298 Million.

Parliament Joint Services Sh 462 M, Judiciary spent Sh 203M, State Department East Africa Community spent Sh 173 M, Parliament Service Commission Sh 152M,State Department Immigration 115.7 M while the Office of the Deputy President gobbled Sh 114 M.

State Department of Labour and Skills gobbled Sh 107M on foreign travel,the Office of the Auditor General spent Sh 103M,State Law Office Sh 72M,National Treasury Sh 60 M,State Department of Trade Sh 58M and Judicial Service Commission Sh 59M.

Ethics and Anti-Corruption Commission (EACC)Sh 50M and the Office of Director of Public Prosecution (DPP) Sh 50M,Office of Prime Cabinet Secretary Sh 44M and State Department Investment Promotion Sh 43M.

The Executive Office of the President spent Sh 36M,Parliamentary Service Commission gobbled Sh 34M while the State Department industry consumed Sh 25 M among others.

While the austerity order ordered foreign travel to focus on essential trips aligned with essential state obligations some Ministries and State Departments defied the order.

High Expenditure on Non-Critical Travel with much of the travel budget spent on non-essential categories, such as training and benchmarking.

The Controller of Budget indicates that large delegations were common with non-adherence to the austerity order on minimizing delegation sizes and calls.

“Multiple trips to the same destinations by diferent MDAs suggest a lack of coordination, leading to redundant travel. For example, numerous departments travelled to Italy and France for similar purposes, incurring avoidable costs,”Nyakang’o said.

The government has been issuing edicts ordering spending cuts across the executive, ministries, departments, and agencies as part of austerity measures that have been rolled out.Despite all these directives, the government is still wasteful

President Ruto pronounced himself, the relevant arms of the government moved with speed to unveil a raft of interventions that would see budgets allocated for travel and accommodation of state officers within and outside the country drastically slashed.

On December 13, 2023, the Treasury issued a circular directing all ministries, departments and agencies, including state corporations, to ensure prudent and responsible utilisation of public resources as provided for in the Constitution and other relevant laws.

This was in tandem with government efforts to reduce budgetary pressure by state corporations, enhance efficiency, ensure they are self-sustaining, and generate additional revenue for the exchequer.

By Capital FM.

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