Uhuru gets Sh1bn extra for undisclosed spending ahead of elections

President Uhuru Kenyatta. PHOTO | PSCU

What you need to know:

  • The Treasury’s supplementary budget estimates presented to Parliament for review indicate fresh allocation of Sh1.05 billion to State House under a budget item labelled other operating expenses.
  • This undisclosed budget item has nearly doubled from Sh1.2 billion that was presented and approved by MPs ahead of June last year.
  • The car purchase budget for Mr Kenyatta’s office has increased 30 times from Sh10 million to Sh300 million, backed up by an extra Sh25 million for fuel to Sh98.9 million.

The State House budget has been increased 47.7 percent or Sh1.89 billion for an undisclosed expense, purchase of cars and local trips, signalling increased travel by President Uhuru Kenyatta in the months to the August General Election.

The Treasury’s supplementary budget estimates presented to Parliament for review indicate fresh allocation of Sh1.05 billion to State House under a budget item labelled other operating expenses.

This undisclosed budget item has nearly doubled from Sh1.2 billion that was presented and approved by MPs ahead of June last year.

The car purchase budget for Mr Kenyatta’s office has increased 30 times from Sh10 million to Sh300 million, backed up by an extra Sh25 million for fuel to Sh98.9 million.

Kenyans are due to go to the polls in August but Mr Kenyatta will not be on the ballot due to a constitutional term limit of two five-year terms.

But he has thrown his weight behind his former foe, veteran opposition leader Raila Odinga, who formally announced his fifth presidential bid in December.

Unlike his predecessor Mwai Kibaki, Mr Kenyatta has announced an aggressive campaign for Mr Odinga against his Deputy William Ruto, who has been vocal about his own presidential ambitions.

The additional allocation for vehicle purchase, local trips and hotel costs, just four and half months to the end of the financial year in June suggests increased travel by the President.

The Treasury’s supplementary budget estimates show that State House expenditure for local travel and hospitality will increase by Sh205 million to Sh965.9 million, reflecting a 21.2 percent rise.

During the launch of the universal health coverage (UHC) programme scale-up in Mombasa on Monday, the President said he would start marathon political campaigns to ensure he leaves the country in the hands of a leader who will push forward his development agenda.

“Now the time for politicking is here and you will hear from us. I’ll vote for whoever my conscience believes in as I only have one vote. But if there is one, or even two people who listen to me, I’ll not hesitate to explain my choice of a successor,” Mr Kenyatta said.

In Mr Odinga’s last three runs for office in 2007, 2013 and 2017, he led his supporters to protest the outcomes in the streets or challenge them in court, saying his victories were stolen. But he called a truce with Mr Kenyatta in early 2018, effectively sidelining Deputy President Ruto.

Mr Ruto is expected to run on the ticket of a new party called United Democratic Alliance (UDA) after quitting the ruling Jubilee Party.

Mr Odinga and Mr Ruto have each intensified campaigns, especially in central Kenya where Mr Kenyatta’s ethnic Kikuyu votes are up for grabs.

Overall, the Treasury revised upwards the State House budget by 47.7 percent to Sh5.88 billion from Sh3.98 billion—making it the biggest jump among all ministries and State departments.

The Sh1.89 billion increase was concentrated in recurrent expenditure, with only Sh128.6 million going to development expenses.

The budget of the Deputy President’s office was increased by 1.1 percent to Sh1.43 billion from Sh1.41 billion.

The Treasury has allocated a new budget of Sh31.6 million to refurbish buildings hosting Mr Odinga’s office.

Mr Odinga is entitled to an office and staff funded by taxpayers as part of pension for the period he served as Kenya’s Prime Minister between 2008 and 2013.

Retired vice-presidents-- Kalonzo Musyoka, Moody Awori and Musalia Madavadi—are entitled to similar perks under the Retirement Benefits (Deputy President and Designated State Officers) Act, 2015.

The staff entitlements include three drivers, a personal assistant, an accountant, two secretaries, two senior support staff, two housekeepers and two garderners.

Kenya Airways’ bailout, petrol subsidy and payments for Covid-19 vaccines topped the list of unforeseen expenditures that will see taxpayers spend Sh108 billion more in the budget for financial year ending June.

The supplementary budget estimates indicate fresh allocations of Sh26.5 billion to the national carrier and other undisclosed expenditures, Sh24.9 billion to a fuel subsidy, Sh9.1 billion to prepare for the August General Election and Sh8.5 billion to Covid-19 vaccines.

This has seen a 3.3 percent jump of the national budget from the original plan presented in April last year, widening the budget deficit further.

“The overall change in the national government ministerial budget, excluding the consolidated fund services and county allocations, from the original approved budget is an increase of Sh126.3 billion,” Treasury Cabinet Secretary Ukur Yatani told Parliament.

He attributed the increase to expenses linked to the elections, Covid-19 expenditures, including Sh1.3 billion for building a vaccines plant, and the bailouts.

This increased the budget deficit from the original projection of 7.5 percent of gross domestic product (GDP) to 8.1 percent, signalling additional borrowing to plug the financing hole.

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