The Budget and Approriation Committee Meets the Controller of Budget and Commission on Revenue Allocation

The Controller of Budget (CoB) Dr. Margaret Nyakang’o has raised a concern over delays in exchequer releases, on the backdrop of the National Treasury having released a total of Kshs. 1.44 trillion by the end of the first six months of the Financial Year 2023/24, to MDAs for both development and recurrent expenditure, Consolidated Fund Services and County Governments, representing 33.7 percent of the revised annual net estimates, which is below the projected target of 50 percent release of the annual allocations.

Dr. Nyakang’o noted this during a meeting with Members of the Budget and Appropriations Committee, led by the Vice-Chairperson, Hon. Mary Emaase (Teso South), as she presented a report on the Budget Implementation for the first six months of the Financial Year 2023/24.

The CoB therefore recommended that the government should enhance revenue mobilization, to enable the National Treasury to release funds on time, to ensure effective implementation of the planned activities.

Further, the Controller of Budget also noted the public debt stock stood at Kshs. 11.14 trillion as of 31st December 2023; comprising Kshs. 6.09 trillion external debt and Kshs. 5.05 trillion domestic debts, indicating an 8.4 percent increase, from Kshs. 10.28 trillion as of 30th June 2023. The spike is attributed to the depreciation of the Kenya Shilling against major world currencies, since external debt stock is recorded in foreign currencies.

Members of the Committee also heard from the Commission on Revenue Allocation (CRA), with Commissioner Koitamet Ole Kina making the presentation on behalf of the Chairperson. CRA flagged the duplication of functions between the National and County governments, in areas like education, health, agriculture, and energy, emphasizing on the need to have a clear guideline on what level each function should be under, for efficient budget implementation.

CRA also noted the need to develop the Recurrent Expenditure Budget Ceilings, based on Counties’ recurrent expenditure having consumed a substantial percentage of the devolved funds, so as to ensure that more resources go into development and service delivery to the public.

The Committee will be receiving more submissions from the stakeholders and thereafter write a report that will be tabled in the House.