What you need to know:
- The report shows that Kenya diverted funds from a Sh80.78 billion loan from the International Monetary Fund to pay salaries and allowances in June.
The Office of President Uhuru Kenyatta and his deputy William Ruto spent Sh8.64 billion or four times more on staff salaries and allowances in the year to June, hurting efforts to free more public funds for development projects.
Data by the Controller of Budget office shows that the pay for staff working in the country’s two most powerful political offices grew 282 per cent from Sh2.26 billion a year earlier.
The Controller of Budget did not disclose what drove the increase, coming on the back of growing calls to cut down spending for non-core items that continue to squeeze funds for development projects.
Margaret Nyakango, the Controller of Budget, said the increase in the spending on salaries and allowances in the two offices and other State agencies forced the government to divert loans meant for development projects to compensate employees amid cash-flow struggles by the Exchequer.
“There were instances where revenue from loans and grants meant to fund development activities was applied to the recurrent budget,” Ms Nyakango says in the latest report.