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Budget report reveals KES 27 billion in government travel expenses

Brian Murimi by Brian Murimi
September 6, 2024
in News
Reading Time: 2 mins read

Kenya’s national government spent KES 27.34 billion on travel during the 2023/24 fiscal year, according to the latest budget implementation review report from the Office of the Controller of Budget.

The report, which covers the period from July 1, 2023, to June 30, 2024, reveals that domestic travel accounted for KES 18.15 billion of the total, while foreign travel expenses amounted to KES 9.19 billion. This substantial outlay on travel comes at a time when the country is grappling with a burgeoning public debt and pressure to streamline government expenditure.

A breakdown of the travel expenses shows varying levels of spending across different government departments. The National Police Service emerged as the top spender on domestic travel, with an outlay of KES 814.71 million. This was closely followed by the State Department for Foreign Affairs, which spent KES 208.75 million on domestic travel and a staggering KES 3.26 billion on foreign travel – the highest among all departments.

The Office of the Deputy President also featured prominently in travel expenditures, allocating KES 441.73 million for domestic travel and KES 114.92 million for foreign trips. Similarly, the State House reported significant travel costs, with KES 1.35 billion spent on domestic travel and KES 298.16 million on foreign travel.

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In contrast, some departments demonstrated more modest travel expenses. The State Department for Public Health and Professional Standards, for instance, spent KES 226.64 million on domestic travel and only KES 2.89 million on foreign travel.

The Controller of Budget’s report also highlights broader fiscal trends. The total national government expenditure for FY 2023/24 stood at KES 3.89 trillion, representing 88 per cent of the revised gross estimates of KES 4.43 trillion. This marks an increase from the KES 3.18 trillion spent in the previous fiscal year.

The report notes that the FY 2023/24 budget aimed to implement the government’s Bottom-up Economic Agenda (BETA) and necessitated the alignment of budgetary priorities. Revenue generation was enhanced through the Finance Policy 2023, which came into force during the year. Specifically, revenue collection through the e-citizen platform was enforced using the pay bill code 222222.

Despite these efforts, the actual receipts into the Consolidated Fund amounted to KES 3.80 trillion, representing 89 per cent of the revised estimates of KES 4.26 trillion. While this marks an increase from the KES 3.24 trillion received in FY 2022/23, it still falls short of the targeted revenue.

The report also sheds light on other significant areas of government spending. Compensation to employees consumed KES 597.87 billion, representing 27 per cent of the gross recurrent expenditure by Ministries, Departments, and Agencies (MDAs). Total grants and transfers to other government institutions amounted to KES 603.72 billion, while subsidies reached KES 141.30 billion.

Public debt expenditure, including principal redemption, interest, commitment fees, and other charges, totaled KES 1.59 trillion. This substantial debt servicing cost continues to be a major concern for fiscal sustainability.

The Controller of Budget’s report identifies several challenges affecting effective budget implementation, including weak budgetary practices leading to overdrawn budget lines, delays in funding MDAs and County Governments due to revenue shortfalls, and late submission of quarterly reports by MDAs.

To address these issues, the report recommends enhancing revenue mobilization by broadening the tax base, ensuring timely authorization for government departments to spend collected Appropriations in Aid, and improving the monitoring of ongoing projects.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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