Kenya’s development money at the national and county levels is never used entirely, this
is according to a recent assessment.
According to a report by the Institute of Public Finance, only 70 of every 100 Shillings
set aside for development are really used at the federal level.
The Macro-Fiscal analysis snapshot report Kenya observes that while this is more than
the counties, only 56% of development monies are really used.
According to John Nyangi, senior research lead at the Institute of Public Finance (IPF),
“If you combine both for the national and County governments, this thus means that
currently we have over 70% of the budget is not utilized for its original purpose.”
According to the National Treasury, recurrent expenses would total Sh2,255.0 billion (or
16.1% of GDP) in the fiscal year 2022–2023, while development expenses will total
Sh676.7 billion (4.8 percent of GDP).
As a result, it is likely that the estimated Sh473 billion intended for development would
not be utilised within the current budget cycle.
This occurs after the Kenya Kwanza administration released its first Budget Policy
Statement last week outlining its top priorities in terms of programs, policies, and
reforms.
In order to put more money into infrastructure, energy, and ICT, the government in the
BPS would increase development spending to Sh1.15 trillion over the course of three
years.
According to the budget plan, expenditures will rise from Sh596.6 billion in the current
fiscal year to Sh1.15 trillion over the following three years.
According to the forecasts, ICT, infrastructure, and energy will receive the highest
portion of the budget allocations, with Sh276.7 billion in the current fiscal year and
Sh324.4 billion in 2025.
However, the county governments are anticipated to get a minor rise of 1.4% in the
FY23/24 budget cycle.
This is a significant reduction in real allocation against inflation of more than 9%.
