Kenyan ministries directed to clear the air over loss of Sh300b


Government ministries have been directed to prepare reports detailing how they utilised funds in their respective dockets for the financial year 2011-2012.

A statement from State House indicated that the reports by the ministries must be submitted to Cabinet in a week’s time.

The statement further said the Cabinet expressed great concerns over an alarming report attributed to the Auditor General that alleges public funds in excess of Sh300 billion had been embezzled during the period.

Over Sh338 billion of the total government expenditure for 2011/2012 was unaccounted for even as the State struggles to raise fresh revenue through new measures like VAT.

Only 6 per cent of the Sh920 billion that the government spent (Sh55.2 billion) was fully accounted for, according to a new report released by the Auditor General Tuesday.

The damning report indicates that a further Sh561 billion lacked adequate supporting documents, highlighting the shocking loopholes that lead to the misuse of government funds.

On Thursday, the Cabinet, which was chaired by President Uhuru at State House, approved the Business Registration Bill, 2013 which seeks to transform the current Registrar General’s office into a Corporate body in line with Global Best Practice.

The meeting further approved The Statute Law (Miscellaneous Amendment) Bill which proposes minor amendments to several Acts of Parliament and the establishment of the National Gender and Development Council.


The Cabinet also approved a road map for fast tracking power generation over the period 2013- 2016 which will culminate in reduction of power tariffs by an estimated 25 per cent of current power charges.

“The intention is to put in place a new electricity generation mix where Geothermal will eventually replace thermal generation with an end result of providing affordable power to consumers.  The expected outcome is that Kenya be more competitive as an investment destination for both local and international entrepreneurs,” the statement said.

The meeting okayed the hosting by Kenya of the 6th All Africa Conference on Animal Agriculture which is scheduled to take place in Nairobi between 27th – 31st October, 2013.

The Cabinet however expressed dismay and outrage over reports appearing in a section of the media, where Kenya is listed as a failed state occupying position 17.

Cabinet noted that Kenya is not and cannot be described as a failed state going by the many achievements the country has made in peace keeping activities, stabilizing role in Somalia and the successful implementation of the Free Primary Education. Kenya is also the leading economy in the Eastern Africa region.

Cabinet set up a sub-committee to study the media report and come up with an appropriate rejoinder.

By ALLAN KISIA, The Standard

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