According to the national government budget implementation review report for FY 2021/2022, the revised annual budget was Ksh. 3.33 trillion compared to Ksh. 2.82 trillion in 2020/21. A total of Ksh. 2.96 trillion was spent which is lower than what was budgeted for.
Total development expenditure was Ksh. 553 billion and Ksh 2.40 trillion in recurrent expenditures. The national government budget implementation review report further adds that recurrent expenditure was Ksh. 1.41 trillion.
The Office of Controller of Budget reported delays in disbursement of funds to Ministries, Departments, Agencies and County governments.
The Office of Controller of Budget advised that Ministries, Departments and Agencies (MDAs) should prioritize payment of pending bills as the first charge in FY 2022/23 budget before embarking on new development projects.
Taxation is still the leading source of revenue for the national government. A total of Ksh. 1.8 trillion was raised from various taxes which is 60 percent of the total national government revenues. This is followed by domestic borrowing at Ksh. 877 billion and external loans and grants at Ksh. 239.6 billion.
Top Four Development expenditures
- State Dept of Infrastructure – Ksh. 130 billion
- The National Treasury – Ksh. 94.8 billion
- Ministry of Water, Sanitation and Irrigation – Ksh. 58.12 billion;
- Ministry of Health – Ksh. 48 billion;
Top Spending MDAs of Recurrent Expenditures
The Teachers Service Commission (TSC) was the highest recurrent expenditure at Ksh. 270.24 billion bulky of which is payment of teachers’ salaries.
State Department for Interior and Citizen Services comes in second with an expenditure of Ksh. 133.62 billion.
As of 30th June 2022, the public debt stock stood at Ksh. 8.45 trillion comprising 50.7 percent due to the external lenders and 49.3 percent due to the domestic lenders.
By 30th June 2021, the public debt stock was Ksh. 7.71 trillion. This means that it has grown by Ksh. 740 billion with the one year period.
As at that date, Kenyan government owed the bilateral partners a total of Ksh. 1.1 trillion or 13.9 percent of the total public debt.
The national government allocated Ksh. 1.17 trillion for servicing public debt out of which Ksh. 608.9 billion was to be used for loan redemption and Ksh. 560.26 billion was for interest payments.
A total of Ksh. 847 billion was spent on loan redemption and interest repayments of public debt in Financial Year 2021/2022.
A total of Ksh. 81 billion was allocated for oil market price stabilization programme under the Ministry of Petroleum and Mining.
Kenyans owed multilateral agencies a total of Ksh. 1.9 trillion or 22.8%. These are the loans received from institutions such as the International Monetary Fund (IMF), World Bank, African Development Bank (AfDB) and others.
Kenyan owed the foreign commercial banks a total of Ksh. 1.1 trillion. This is part of foreign public debt.
Domestically, the government of Kenya borrowed Ksh. 84 billion from the Central Bank of Kenya (CBK). You may be aware that the Central Bank is the lender of last resort for our government.
The government of Kenya borrowed Ksh. 1.8 trillion from the local commercial banks.
A total of Kshs. 187 million was spent on communication items such as making telephone calls, sending telex and facsimile at the National Treasury of Kenya.
Office of the President
A total of Ksh. 358 million was spent for purchase of vehicles and other transport equipment at the Office of the President.
Independent Electoral and Boundaries Commission (IEBC)
A total of Ksh. 10.58 billion was spent by the IEBC during the FY 2021/2022. This comprised of Kshs. 4.76 billion for election materials and transport, Kshs. 1.72 billion for purchase of software, Kshs. 1.70 billion for the purchase of ICT equipment, Kshs. 933 million for maintenance of computers, software, networks and communications equipment, Kshs. 427.95 million for contracted professional services, Kshs. 406 million for utilities supplies and services, Kshs. 255 million for medical and group personal insurance, Kshs. 126 million for telephone, telex, facsimiles, and mobile services, Kshs. 64 million for general office supplies, Kshs. 64 million for fuel oil and lubricants, and Ksh. 58 million for housing and car loans.
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