Exclusive: Ruto, Gachagua, and Mudavadi Secure Unprecedented Sh3.4 Billion Boost in New Budget for Office Enhancements
In light of recent budget revisions, the offices of President William Ruto, Deputy President Rigathi Gachagua, and Prime Cabinet Secretary Musalia Mudavadi will receive an additional Sh3.4 billion.
In its second 2022/23 supplementary budget, which covers spending for the fiscal year ending June 30, 2023, the National Treasury has proposed additional spending for the three offices, despite a decline of Sh39 billion in capital allocations for development spending.
The Executive Office of the President will receive the largest budget increase at Sh3.1 billion, while the Office of the Deputy President and the Office of the Prime Cabinet Secretary will receive increases of Sh166 million and Sh81.3 million, respectively.
State departments and ministries, such as the National Treasury, correctional services, infrastructure, national assembly, the Teachers Service Commission, crop development, and agricultural research, are among the biggest losers in the fiscal year’s final mini-budget.
Additional expenditures for the Executive Office of the President include salary increases for newly created offices as well as increased operational and maintenance budgets.
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“The net change of Sh2.6 billion under current expenditure is due to additional funding to cover shortfalls in personal emoluments and operations and maintenance for new offices by Executive Order 1 of 2023,” the National Treasury stated.
“The net charge of Sh465 million under capital expenditures is to facilitate the refurbishment of buildings.” State House Affairs will receive the largest portion of newly appropriated funds, Sh2.1 billion, as a result of the total budget adjustment.
The office of the Chief of Staff and Head of the Public Service will receive an additional Sh571.8 million to cover increased demand for hospitality supplies and services, office furniture, and fuel and lubricant costs.
Former President Uhuru Kenyatta will lose Sh20 million in allocations as the fourth retired President, due to significant budget cuts for the routine maintenance of vehicles, other transport equipment, and other assets.
State House Nairobi has been allocated an additional Sh1.5 billion, of which Sh231 million has been designated for hospitality supplies and services.
The domestic and international travel budgets will receive additional allocations of Sh175 million and Sh15 million, respectively, while the allocation for staff salaries has been raised to Sh26.3 million.
The office of the State House Spokesperson will receive Sh49.3 million to cover basic salaries and personal allowances for permanent employees. In the meantime, the Office of the First Lady will receive an additional Sh295.7 million, the majority of which will be allocated to salaries and the remainder to personal allowances, domestic travel, and hospitality.
The budget of the Office of the Spouse of the Vice President will decrease by Sh31.9 million, with Sh10 million cut from domestic travel.
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In terms of development, the Sh465 million budget increase covers additional expenditures for the maintenance of State House Nairobi, State House Mombasa, Sagana, and State lodges in Nakuru, Kakamega, Kisumu, and Eldoret.
Increased appropriations for the offices of the Vice President and the Prime Cabinet Secretary cover increases in operational and maintenance budgets, such as salaries and personal allowances, as well as hospitality services.
By the 1st Executive Order of 2023, the office of the President now consists of 13 key offices, such as the Office of fiscal affairs and budget policy, the office of economic transformation, the office of the Women’s rights advisor, and the Office of the Council of Climate Change Advisor.
The newly created offices have inflated government spending on wages and salaries, causing the national government’s wage bill to balloon by nearly Sh16.6 billion in the first nine months of the current fiscal year.
Numerous appointments made by the new administration in other sectors of the public sector have also had a significant impact on the government’s wage bill. In addition to increasing the number of State departments from 44 to 51, the new administration also appointed 50 chief administrative secretaries.
The escalation of the wage bill during the nine months coincided with delays in the payment of government employees’ salaries, as the government acknowledged liquidity issues.
Despite this, the bloated wage bill has raised concerns about possible double-speak on the part of the new administration, which initially pledged to implement budget cuts in pursuit of fiscal consolidation.
Exclusive: Ruto, Gachagua, and Mudavadi Secure Unprecedented Sh3.4 Billion Boost in New Budget for Office Enhancements
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