Economy

Uhuru, Ruto offices burst budget amid austerity call

UK

President Uhuru Kenyatta. The government announced an austerity programme aimed at cutting spending on non-core activities. PHOTO | FILE

President Uhuru Kenyatta’s office and that of his deputy, William Ruto, overshot their budget a month to the end of the financial year, prompting the Treasury to offer the Presidency an additional Sh1.4 billion.

Treasury documents released last week show that the Presidency, which constitutes the offices of the President and his deputy, had spent Sh6.1 billion at the end of May against the initial budget of Sh5.9 billion.

Its recurrent budget was increased to Sh7.4 billion to accommodate the additional expenditure amid a call to cut non essential spending to free money for development.

The Presidency’s recurrent budget is used to pay salaries of the President, his deputy and past presidents, cater for their travel, procurement or leasing of vehicles, and the State House budget, among others.

The Foreign Affairs and the Sports ministries as well as the Presidency were the three government units that had by end of May overspent their initial full year budgets.

Foreign Affairs overshot their initial budget of Sh12 billion with Treasury documents showing that it had spent Sh12.7 billion by May.

The ministry caters for Kenya’s foreign missions, manages foreign travel for the president and his deputy and is responsible for visiting dignitaries. During the period, Kenya hosted several senior dignitaries including US President Barack Obama and Pope Francis.

The ministry also hosted the 10th World Trade Organisation (WTO) Ministerial Conference which attracted about 7,000 delegates. 

The Sports ministry on its part had spent Sh3.4 billion in the 11 months to May against the original budget of Sh2.9 billion.

During the period, the only major tournament that Kenya participated in was the 2015 World Athletic Championships in Beijing, China, where the country was represented by 46 athletes.

The overshooting of original budgets is a blow to the government’s stated aim of cautious spending especially on travel and allowances to free up more cash for development.

The Jubilee government early last year announced a tight austerity programme aimed at cutting spending on non-core activities.

The spending cut plan deepened with the announcement that top public officials, led by Mr Kenyatta and Mr Ruto, had offered to take a 20 per cent pay cut, a pledge that is yet to be implemented.

The government last year unveiled a new transport policy that has seen the National Police Service resort to hiring vehicles as opposed to buying, which is considered wasteful.

Senior government officials — all State Officers and Chief Executive Officers of State Corporations — were also to be issued with travel wallets in what Mr Kenyatta said was “to reverse the perverse incentive of government officials travelling as a way to earn money.”