State House, Kindiki office get extra Sh5bn for pay, travel

State House will receive the lion’s share of the Sh5 billion allocated to the three top offices, with Sh3.8 billion.

The State House allocation will cover an unexplained expenditure of Sh1.5 billion, Sh732.2 million for domestic travel, salaries and perks of Sh700 million and Sh312.4 million for car maintenance.

Prof Kindiki’s office will get an extra Sh420.4 million for salaries and travel while that of Mr Mudavadi will receive an additional Sh133.4 million.

The additional budget for recurrent expenditure comes at a time when the State is pushing for a cut on non-essential expenditures like travel and entertainment to ease a cash crunch.

The cash crunch is the product of below-target tax collections in a soft economy and worsened with the withdrawal of last year’s Finance Bill, which had planned additional revenues of Sh345 billion.

“Since the approval of FY 2024/25 budget, the National Treasury has received additional requests for funding to cater for emergency priorities and shortfalls under critical expenditures,” Treasury Cabinet Secretary John Mbadi said in a notice attached to the supplementary budget.

“Included is additional expenditure to cater for salaries shortfall, security-related interventions, and drought-related expenditures among other emergency priorities.”

Mr Mbadi said revenues were below target by Sh62.8 billion in the six months to December, blaming subdued economic activity triggered by deadly street protests against the Finance Bill.

Read: Security, education, health win in Sh86bn budget boost

Budget allocations to education, security, and healthcare have been increased even as water, housing, and energy were subjected to a cut in spending adjustments that have expanded the budget size for the current financial year by Sh85.8 billion. This figure excludes Sh5.5 billion apportioned for Consolidated Fund Services, which caters for debt repayment obligations.

Yesterday, the Treasury tabled the second Supplementary budget to the National Assembly which increased the size of Kenya’s budget for the financial year ending June to Sh3.56 trillion from the current Sh3.47 trillion.

Former President Uhuru Kenyatta and ex-Prime Minister Raila Odinga are also beneficiaries of the expanded budgets under the office of retired presidents and deputy presidents, which received an extra Sh88 million.

Mr Kenyatta will see his office receive an extra Sh23 million for insurance costs, purchase of office furniture and general equipment,

Mr Odinga’s office will get an additional Sh20 million for insurance while an unnamed retired vice-president will get Sh25 million for the same expenditure.

The additional budget for State House Nairobi captures a string of extra expenditures including salaries, hospitality and car maintenance.

Basic salaries to permanent employees are expected to increase by Sh375 million while perks will get an extra Sh325 million.

Domestic travel will gobble up an additional Sh732.2 million as the foreign travel budget gets an extra Sh6.1 million.

Maintenance of cars will eat an additional Sh152.1 million while fuel and lubricants have been allocated a further Sh160.3 million.

Expenditures marked as other operating expenses for State House Nairobi meanwhile receive a further Sh1.5 billion.

The State House’s overall budget is expected to close at Sh8.1 billion for the fiscal year to June from an initial Sh4.3 billion, nearly doubling.

The Executive Office of the President, which is separate from the State House, will see a Sh651.6 million budget increase for recurrent expenditures.

The additional spending will cater for unforeseen salaries in the Office of the Chief of Staff and Head of Public Service and the government printer.

The Deputy President’s office will see an additional budget of Sh420.4 million, bringing its total spend to Sh3 billion from Sh2.59 billion.

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