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Budget controller blames inefficient committees for low funds absorption

By By JAMES ANYANZWA | Dec 14th 2013 | 2 min read
By By JAMES ANYANZWA | December 14th 2013


KENYA: The Office of the Controller of Budget has blamed project implementation committees in ministries and departments for the low absorption of funds meant for development.

Controller of Budget Agnes Odhiambo said the existing monitoring and evaluation framework is ineffective to track budget implementation on timely basis. “This has led to poor supervision of projects by national government entities,” she said.

Ms Odhiambo noted that a comprehensive and effective monitoring and evaluation framework should be put in place to ensure close supervision of projects and programmes and enhance service delivery.

Various ministries and departments failed to spend a total of Sh339.6 billion allocated to them during the financial year ended June 30, 2013. The amount is even Sh75 million more than what was left unspent in the previous financial year.

Procurement procedures

Out of the revised budget estimates of Sh1.15 trillion for the 2012/2013 financial year, only Sh814.7 billion was spent, despite increased budgetary allocation to development expenditure.

Cabinet Secretary Henry Rotich noted that the government’s uptake of the development budget is currently estimated at 55-60 per cent.

Rotich blamed the worrying trend to lengthy and cumbersome procurement procedures.

“ Previously and even now we still face challenges with our absorption capacity .Our absorption is still very low. We intend to increase this and get to 80 per cent, 100 per cent and even more than this,“ Rotich said last week.

Delayed exchequer releases have also been blamed on the low absorption of development funds by government entities.

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