Nobody making use of Sh30b in Central Bank

By David Ochami

Treasury says Sh30 billion is idle at the Central Bank because ministries either do not apply for or lack capacity to absorb it.

Finance PS Joseph Kinyua told Public Accounts Committee Tuesday the Health and Education ministries routinely fail to submit requests for money allocated them.

He alleged that these have indicated they lack capacity to spend billions of shillings allocated them under the Economic Stimulus Package.

Committee chairman Bonny Khalwale said he was shocked at the revelations amidst accusations Treasury had refused to send money to hospitals and other amenities.

He challenged the PS to convene a meeting of affected ministries to co-ordinate utilisation of the money.

Dr Khalwale was with MPs Julius Kones (Konoin), Omondi Anyanga (Nyatike), Alex Mwiru (Tharaka) and Charles Onyancha of Bonchari.

"We have written letters to these two ministries seeking to know why they are unable to spent billions set aside for them and is idling in CBK accounts," Kinyua said.

Demonstrated capacity

The PS disclosed that the Roads Ministry had demonstrated capacity and ability to absorb and spend huge amounts disbursed to it.

Last week, Treasury said it disbursed Sh4.5 billion to education projects under the Economic Stimulus Package. "They said they are not ready," Kinyua said, referring to the Education and Health ministries.

"We have Sh30 billion sitting idle daily at CBK," he added.

Kinyua said the multi-billion shilling World Bank funded Jomo Kenyatta-Machakos road has stalled despite Parliament’s approval to co-fund and conclude it, reportedly due to a Sh1-billion dispute between the Government and the contractor.

But Kinyua said the Government disbursed money for completion at the last supplementary budget.

"The money is in the budget and I will be meeting Roads PS Joseph Kamau to know why this contractor has not been paid. We will ensure the money is paid by tomorrow," he said.

Kinyua told the committee the Government had spent Sh1.5 billion from the Civil Contingency Fund for five ministries with Sh565 million being advanced to the Trade Minister to revive Uchumi Supermarket.