Treasury Spent Kshs.23B in Uhuru's Final Days

According to documents presented in parliament, the treasury spent Kshs. 23 billion without the approval of the parliament a few weeks before the new President William Ruto was sworn in on September 13, 2022.

Treasury Spent Kshs.23B in Uhuru's Final Days
Former President Uhuru Kenyatta

The treasury allocated the funds to various sectors, including maize flour and fuel subsidies, an unknown Telkom Kenya, and the military research hospital.

In the event, Kshs. 800 million was disbursed to the state house, Kshs. 2.2 billion for building the military research hospital, Kshs. 4.5 billion for the maize flour subsidy, Kshs. 6 billion to Telkom Kenya, and Kshs. 9.45 billion for road construction.

The Sh23 billion is part of the Sh54.6 billion pledged to be withdrawn from the government's main account without parliamentary approval.

“Already the Treasury has invoked Article 223 of the Constitution that allows them to spend money without the approval of Parliament. They have approved the withdrawal of Sh45.67 billion out of which Sh23 billion has been paid out,”  Martin Masinde, the acting director of the Parliamentary Budget Office (PBO) revealed to the MPs.

The National Treasury. PHOTO FILE

Masinde also stated that the treasury was violating the article of the constitution and that action was required to save the country.

“This Article of the Constitution has been abused by the Treasury. What happens now is that the Treasury withdraws money to fund what is not budgeted and comes to Parliament to rubberstamp the expenditure?" Masinde posed.

In accordance with the Constitution, the Treasury now requests that Parliament approve the wired funds.

Masinde also requested that the 13th Parliament should draft legislation requiring the Treasury to first approach Parliament and discuss the intention of expenditures before distributing funds across several sectors.

According to the Parliamentary Budget Office, the Treasury has yet to disburse Sh8.1 billion to schools, Sh2.8 billion to the State House, Sh1.3 billion to the military hospital, and Sh16.5 billion for fuel subsidies from the unapproved allocation.

The revelations come amid complaints from President Ruto's key allies that they inherited a bankrupt government with no cash in the Treasury.

Speaking during the inauguration ceremony at Kasarani stadium, Deputy President Rigathi Gachagua stated that they had inherited a declining economy from former President Uhuru Kenyatta and that it would take them time before they could retrieve it.

"The truth of the matter is that we have inherited a dilapidated economy that is almost facing an economic shutdown, we have 10 billion public debt, six million Kenyans have no employment we have a demoralized public service," DP Rigathi stated.