In Summary
  • The new budget-making law requires a breakdown of expenditure to accompany every line in what is known as programme-based budgeting.
  • The Presidency will be a beneficiary of what is seen as an end to austerity measures started five years ago, following a 26 per cent increase in its budget this year.

The government plans to spend billions of shillings on projects that have stalled or have been rocked by corruption, budget documents before Parliament show.

In the wake of reports of the collapse of the multibillion-shilling Galana-Kulalu Irrigation project, the government has allocated another Sh7.9 billion for irrigation this year, while the dams projects — riddled with corruption — have another Sh25.1 billion to spend this year.

Though it still has many questions to answer following the National Youth Service (NYS) scandal, the Devolution ministry has received a new budget line of Sh6 billion that did not exist in the past.

This new expenditure is passed as “other capital grants and transfers”, but it does not have any additional narrative to provide the exact details of what this money will do.

The new budget-making law requires a breakdown of expenditure to accompany every line in what is known as programme-based budgeting.

UHURU'S BUDGET

The government will also be increasing its expenditure on buying shares in companies by over 10 times. This is after it increased its expenditure for strategic investments in public enterprises from Sh300 million to Sh3.7 billion.

Another Sh6.2billion will be pumped into the controversial managed equipment services project that continues to draw resistance from county governments.

The Presidency will also be a beneficiary of what is seen as an end to austerity measures started five years ago, following a 26 per cent increase in its budget this year.

The Presidency will now spend Sh11.2 billion in the new financial year that starts in July, up from Sh8.8 billion it was allocated this year. This will represent a Sh2.3 billion rise in the budget.

Nearly a half of this increase will be used to buy goods and services that cater for entertainment, hosting dignitaries and the day-to-day running of the Presidency.

PAY RISE

The Treasury increased the goods budget for the presidency from Sh4.9 billion last year to Sh6 billion this year. This means that the presidency will be spending about Sh500 million a month or Sh16.4 million every day to run its affairs.

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