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Kenya: Political Parties On the Spot Over Misuse of Funds

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4 years ago

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Political parties spend a huge chunk of the millions of shillings they receive from the Exchequer to pay office rent and offset staff salaries instead of promoting democracy.

Auditor-General Nancy Gathungu states in a report that a huge percentage of the money is used to meet the costs of organising meetings of party organs at the national level.

These include national executive councils, governing councils, parliamentary groups and the youth, women and disability leagues.

Speaking to the Nation yesterday, Makueni Senator Mutula Kilonzo Jnr regretted that the kitty has failed to serve its intended purpose.

“The purpose of the fund was to promote democracy and kill briefcase political parties but this has failed because of the erratic nature in which it is disbursed,” Mr Kilonzo said, adding that the Registrar of Political Parties should put in place structures to ensure regular disbursement.

The Wiper Democratic Movement vice-chairman said there’s need to reform the way the fund is managed.

The law requires every registered party to maintain fully fledged offices in at least 24 counties.

Party funds

The senator argued that the delay in disbursement had undermined this key requirement of the law.

“The delay in disbursement has made it impossible for political parties to operate both nationally and in counties. It’s not possible to establish fully fledged offices in 24 counties as required by the law because the disbursement of the fund is irregular.”

A similar opinion was expressed by the auditor-general two years ago.

“The delay in the release of political party funds has contributed to under expenditure which has impacted negatively on the achievement of the planned annual objectives of the political parties that benefit from the fund,” Mr Edward Ouko, then auditor-general, observed in 2018.

The law pegs the fund to not less than 0.3 per cent of the revenue raised nationally, audited and approved by Parliament, although parties may receive contributions and donations from other sources.

The Act mandates parties to use the money they receive from the kitty to promote representation of women, persons with disabilities, youth, ethnic and other minorities and marginalised communities in both houses of Parliament and the county assemblies.

At least 30 per cent of the funds received should be used for the purpose. While parties have received billions of shillings since 2011 when the law was enacted, the only audited accounts available for scrutiny are those of the 2017/18 financial year.

In that period, ODM budgeted for Sh1.4 billion but the actual amount it realised was Sh160 million.

The party had expected to receive Sh1.24 billion from the exchequer but was allocated Sh112 million. It had also projected to receive Sh161.4 million from public contributions and donations from its members and another Sh9 million from other sources.

But in reality, it got Sh46.4 million from public contributions and donations, and a paltry Sh2.2 million from other sources.

Staff compensation

Out of the total collections, ODM spent Sh102 million to cover election-related expenses and promotion of its policies through placement of advertisements in the media.

A total of Sh46.2 million was used in staff compensation, Sh1.68 million in paying office rent and another Sh1.85 million to off-set capital expenditure costs.

In the same financial year, Jubilee Party had a projection of Sh397.7 million but the actual revenue realised was Sh618.3 million, resulting in extra receipts of Sh220.5 million.

The extra receipts arose from the funds the party received as nomination fees from candidates ahead of the 2017 General Election.

About Sh263 million was from the kitty, Sh377.9 million from members and donations, while Sh19 million came from other sources. About Sh141.9 million was used to compensate staff and Sh277 million in procurement of goods and services.