Kenya's Controller of Budget Flags KSh 9.5b Govt Expenditure on Local, Foreign Trips

• Controller of Budget (CoB) Margaret Nyakang'o appeared before the National Assembly Committee on Public Debt and Privatisation on Friday
• Nyakang'o advised President William Ruto's government to concentrate on cutting travel expenses to avoid straining taxpayers
• The CoB also highlighted that commitment fees on loans are another source of expense that could make the country default on its obligations

Japhet Ruto, a journalist at TUKO.co.ke, brings over eight years of experience in reporting on finance, business, and technology, delivering insights into economic trends in Kenya and globally.

Kenya's Controller of Budget (CoB), Margaret Nyakang'o, has issued a warning over government waste, particularly domestic and international travel.

Nyakang'o reiterated that reducing non-essential spending will assist in lowering the budget deficit and, eventually, the burden of debt payment.

Why did Margaret Nyakang'o warn the government?

The CoB appeared before the National Assembly Committee on Public Debt and Privatisation on Friday, May 30.

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She cautioned that if the government doesn't curb the country's officials' increasing desire for domestic and international travel, as well as other excessive expenditure, it will face more serious issues.

According to Nyakang'o, the government ought to concentrate on cutting travel expenses, which have cost taxpayers more than KSh 9.5 billion in the first nine months of this fiscal year.

"Last year, I was fortunate to travel to Turkey on an ICPAK trip. The entire room was occupied by Kenyans, and a Kenyan was facilitating them. One may wonder why these individuals didn't sit in Mombasa and have a Kenyan assist them. Did they need to take a plane to Istanbul?" she posed.

Why loan commitment fees pose risks

Commitment fees on loans are another source of expense for taxpayers, even in circumstances of inadequate project preparation, delayed cash distributions, and inefficient loan use.

The CoB revealed that Kenya paid loan commitment fees totalling KSh 770.5 million for the first nine months of the fiscal year 2024/2025.

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"The issue lies in the misalignment between loan disbursements and project preparedness. It was found that loans are signed before project implementers are ready, leaving them caught off guard when informed that funds are available and urged to begin work," Nyakang'o disclosed.

She highlighted that the move increases the strain on debt servicing, which, if left unchecked, will probably result in the nation's default on its obligations.

"We are on the verge of defaulting if we keep doing the wrong things, but if we change our ways and start doing the right things, and I just mentioned that if we go to the TSA, we will save a lot of money and not need to borrow as much," she stated.

Additionally, Nyakang'o mentioned that salaries, benefits, and other expenses are expected to increase by KSh 4.67 billion.

This comes against the backdrop of decreased pension and gratuity payments.

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How much did Ruto spend?

Last year, the CoB revealed that President William Ruto's administration spent KSh 5 billion on foreign travel in nine months.

The state spent KSh 4.11 billion more than it did during the same period in 2022/2023.

Ruto promised to cut travel expenditure following massive nationwide anti-government protests.

Proofreading by Asher Omondi, copy editor at TUKO.co.ke.

Source: TUKO.co.ke