Recurrent expenditure eats 97pc of Exchequer's releases

Only 10 of the Government’s ministries and state departments have received development money for the current financial year.

According to the National Treasury update for the first two months of the current financial year (up to end August), most key state departments such as Agriculture, Devolution, Tourism and Trade are yet to get any development funds from the Exchequer.

Just Sh2.64 billion was disbursed for development in two months, according to the latest Kenya Gazette notice. This is despite all ministries having received Sh102.3 billion to cater for their recurrent expenditures such as salaries.

The Ministry of Health leads among the 10 beneficiaries so far, having received Sh904.7 million in two months. This is followed by state department of transport with Sh660.5 million. The National Treasury has so far given itself Sh151.4 million.

However, Treasury Cabinet Secretary Henry Rotich explained that ministries are yet to make request as the current financial year has just started. “Usually, at the beginning of the year, the request for cash is very low since ministries are developing their procurement plans and loading them to IFMIS,” explained the CS.

At Sh2.64 billion in two months, the disbursement may be low considering that the Government budgeted to spend a massive Sh416.4 billion for the entire year. This means on average, Sh69.4 billion should have been disbursed by close of August.

Of the average Sh131.8 billion for recurrent expenditure that should have been released in two months, 78 per cent has been passed.

This is in contrast to just 3.8 per cent of average two month expenditure that has been released. The update comes at a time when Parliamentary Budget Office has raised concern over the pace at which government disbursed development funds last year.

Leading beneficiary of the Exchequer’s recurrent expenditure kitty is Teachers Service Commission which has so far been given Sh30.78 billion mostly to meet teachers’ salaries.

This is followed by the Ministry of Defence (Sh12.36 billion) and State Department for Interior with Sh11 billion. Some Sh6.25 billion was disbursed for university education while Devolution wraps up the top five beneficiaries with Sh5.64 billion. Collectively, counties have so far received Sh29.5 billion in two months.

Only five counties have so far received over a billion shillings. Nairobi is the leading having received Sh2.4 billion followed by Machakos (Sh1.3 billion). Mombasa, Homa Bay and Migori have all received Sh1 billion.

National Treasury’s printed estimates show that counties are supposed to receive Sh284.7 billion in the current financial year that run up to end of June next year.