MPs push for budget cuts on Sh1.5B Statehouse renovation expenditure » Capital News

NAIROBI, Kenya May 17 – Details have shown how Statehouse intends to expend Sh1.5 billion in the financial year 2024/2025 for the construction and renovations of state house and lodges which commenced in 2015.

Documents tabled before the National Assembly committee on Administration and Internal security show, in the total budgetary allocation of Sh9.4 billion, recurrent expenditure will utilize Sh7.9 billion and Sh1.5 billion will be channeled to development expenditure.

The thirteen projects which are to be completed in 2027 are estimated to cost Sh11.5 billion with concern raised by the house team on the slow completion rate of the projects.

In the current financial year, Sh250 million has been allocated for the refurbishment of Nairobi State house, Sh240 millio for State House Mombasa, and Sh200 million for the Nakuru state lodge.

The the refurbishment of Sagana state lodge was allocated Sh35 million, Eldoret state lodge Sh125 million, Kisumu state lodge Sh14.9 million, Kakamega state lodge Sh15 million and Kisii state lodge Sh19 million.

The cost of refurbishing Mtito Andei state lodge had been set at Sh 5 million, Construction and other civil works Sh500 million, ICT Networking and Communication Equipment Sh100 million),Purchase of Specialized Plant, Equipment and Machinery Sh50 million.

Homabay Town MP Peter Kaluma questioned whether some statehouse renovations which are not urgent can be halted to allow the funds to be channeled to other state agencies which require funds for development.

“How far are the works? In every budget whether supplementary or main, the renovation budget of statehouses is listed with tens of millions allocated. I doubt whether this is prudent and in your own houses you can been renovating at this rate,” Kaluma said.

“Knowing the situation of the economy what are the reductions can be made on this amount of renovation or which can be halted so that other state government agencies can be allowed to run on development,” he added.

Statehouse comptroller however explained the prolonged completion of the statehouse renovation was linked delayed exchequer releases.

“Yes its true these renovations can almost translate into new projects….When you see these monies given to routine maintenance are slashed when the budget are revised,” Metito said.

“If all monies are given as required by the exchequer,the budget will not be carried to the following financial year.”

Members of Parliament also raised concerns on Statehouse budget following revelations that the state agency intends to use Sh7.9 billion on recurrent expenditure in financial year 2024/2025.

Lawmakers poked holes on the anticipated expenditure by Statehouse at a time when taxpayers were facing harsh economic times with the government steering towards reduction of the wage bill which is burdening Kenyans.

MPs raised serious issues with the recurrent expenditure which mainly encompasses wages, salaries and supplements, purchases of goods and services and consumption linking to possible wastage of funds.

“The indication of the recurrent expenditure alone is roughly Sh8Billion, which is the recurrent expenditure of Judiciary, an arm of government. What can we do to enable the President to have more money for other necessary priorities apart from this?” posed Kaluma.

Statehouse Comptroller Katoo ole Metito admitted that indeed the recurrent expenditure had skyrocketed over the years with huge expenditure on recurrent expenditure being utilized on wages and purchase of goods and services.

Metito disclosed that since President William Ruto got into office his administration has been hosting several head of states and delegations in efforts to streamline and forge support for his government.

“Our biggest challenge is recurrent expenditure which goes to hospitality majorly. The number of delegations his excellency has been hosting since he got into office continental and regionally,” he said.

“Every year we here we don’t have less than ten head of states visiting. The first two years the cost of putting your administration into place is very high but the President is very committed to bring it down,” he explained.

It emerged that President William Ruto had got wind of the ballooning recurrent expenditure which prompted him to summon the four-accounting officer in the state agency where he read the riot act on cutting unnecessary expenditure.

“We were summoned as the accounting officers of presidency and the President was very keen telling us to lead by the front to bring down the cost. I understand and we were told to delay projects that were not really urgent,” Metito remarked.

In the supplementary budget two in the current financial year which is yet to be approved, Statehouse seeks an extra allocation of Sh 1.5 Billion which the total expenditure of the monies going to recurrent expenditure.

In the breakdown given, Sh300 Million of the increased budget will go towards personal emoluments while Sh1.2Billion will be utilized on operations and maintenance expenditure.

Kisumu West Rosa Buyu averred that it’s unfortunate that Statehouse was among state agencies dealing a blow government austerity measures by overspending on recurrent expenditure.

The Kisumu West MP implored Statehouse not to push for more additional funds which is being injected towards recurrent expenditure yet critical state agencies lacked funds for development.

“We have various state department and agencies complain that they are not able to move due to budget cuts. Since we all we are trying to leave within constrains of money we have, kindly be considerate and make use of the monies that you have, its sufficient,” she stated.

“All of the supplementary budget was about recurrent expenditure. They are people who were not on board when the budget had been passed. Their confirmation at the Public Service Commission took more than six months, most of these monies is for these people,” Metito explained.

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