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Kenya's Treasury starts scrutiny of parastatal budgets

By Daniel Psirmoi | Published Mon, August 20th 2018 at 08:05, Updated August 20th 2018 at 08:07 GMT +3
Treasury CS Henry Rotich

The National Treasury has directed all parastatal chiefs to give budget breakdowns of new projects for scrutiny.

This is to ensure that they conform to President Uhuru Kenyatta’s Big Four development agenda.

Treasury Cabinet Secretary Henry Rotich will today start scrutinising detailed budgets for projects under the State corporation in the current financial year.

According to a circular by Mr Rotich addressed to principals secretaries and CEOs of State corporations, the officials have also been asked to disclose all ongoing projects and status of implementation.

“The National Treasury will convene consultative meetings with State corporations from August 20th to 31st for purposes of considering the rationalised budget for approval,” read the circular dated August 10.

“For new projects, State corporations are required to demonstrate how they are aligned to the Big 4 Agenda, emerging national government priorities and addressing the core mandate of the corporation.”

After assuming office for his second term last year, the President unveiled what he termed his ‘Big Four’ agenda, listing four key pillars – manufacturing, universal healthcare, affordable housing and food security.

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The circular points out that the meeting will entail discussions on reviewing and analysing the proposed budgets.

Submit summaries

The State corporations will be required to submit summaries of feasibility study reports or project justifications for projects costing more than Sh10 million in the 2018-2019 financial year.

The parastatals will be also required to explain disproportionate growth of recurrent expenditures and submit details on unfunded budget deficits, pending bills and non-servicing of debts.

They are also to state the cause of their non-payment of dividends, operating surpluses to the exchequer and non-payment of statutory obligations such as taxes, workers’ pensions and sacco charges.

Other itemised recurrent expenditures to be submitted are advertising, transport and travelling expenses.


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