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Kenya: Supplementary Budget Raises Concern in House

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6 years ago

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The Treasury has caused jitters in the National Assembly after it presented Supplementary Budget III just seven days to the end of the 2019/20 financial year.

When new Majority Leader Amos Kimunya tabled it on Tuesday afternoon, Speaker Justin Muturi appeared to be taken aback.

“I hope the National Treasury knows that we have seven days to the end of the financial year,” Mr Muturi said as MPs murmured loudly.

Already the Budget and Appropriations Committee has summoned Treasury Cabinet Secretary Ukur Yatani to appear before it today and defend the supplementary budget.

The committee will be chaired by Eldama Ravine MP Moses Lessonet after Kikuyu MP Kimani Ichung’wah was removed as chairman in the recent Jubilee purge.

According to the estimates, the Treasury has allocated Sh1.8 billion to the Transport ministry for the Nairobi commuter train and Sh1.5 billion to the Interior ministry for secure communication and surveillance systems.

To entice MPs, Sh1.7 billion has been allocated to the Parliamentary Service Commission for refurbishing buildings and the construction of the multi-storey MPs’ office block.

The Sh3 billion that had been ring-fenced by the budget committee for all hospitals handling Covid-19 patients has been raided in the supplementary budget. The money was to be used to cushion patients from being charged for their treatment.

Now, the Treasury has reallocated Sh2 billion from the budget to procure Covid-19 testing kits and masks, among others. The purchase of these items was allocated funds in the Supplementary Budget II and was to run until June 30.

Mr Ichung’wah said the constant revision of the budget could be an indication of lack of realism in the country’s revenue estimates during the budgeting process.

“The country needs to have credible budgets anchored on realisable revenue targets,” he said.

The new estimates include Sh5 billion that the President announced will be allocated to county governments to enhance their fight against Covid-19.

The money has already been allocated, meaning that the Treasury is seeking post-fact approval.

The supplementary budget also contains Sh1.5 billion allocated to the Labour ministry for stipends to the elderly.