The National Assembly Budget Committee Chairperson, Ndindi Nyoro, on Wednesday, November 20, delivered a scathing critique of the National Treasury’s performance.
Nyoro accused the Treasury of failing to meet revenue projections and pursuing unclear budgetary priorities, placing Kenya in a precarious financial position.
Also Read: Best and Worst Performing Counties in Own Source Revenue Collection for 2023/24
How Ndindi Nyoro exposed Government Reckless Spending amid the overtaxation debate! pic.twitter.com/jU5U9bU6cQ
— The Kenyan Vigilante (@KenyanSays) November 21, 2024
Misplaced Budget Priorities
Speaking during the Budget Appropriations hearing, Nyoro expressed frustration over the Treasury’s focus on recurrent expenditure at the expense of development.
He highlighted the adverse effects of this approach on the country’s growth and financial sustainability. He stated that the continued prioritization of recurrent expenditure rather than development projects is a mistake that the government keep repeating.
This undermines economic progress and leaves the country overly dependent on borrowing.
Revenue Shortfalls and Mounting Debt
Nyoro was particularly critical of the Treasury’s consistent failure to meet revenue collection targets, which he said had forced the country to borrow more despite widespread public opposition. He stated,
”We keep making the same mistake all the time, for the last 10 years, our ordinary revenue has only been achieved at 67 per cent. If you keep having a downfall between our targets and the actual revenue, then why do we have to target higher?”
Treasury data as of July 2024 indicates that Kenya’s public debt has ballooned to approximately Ksh10.6 trillion. In September, the Treasury disclosed in its 2024 Draft Budget Review and Outlook Paper that it missed revenue targets for the last financial year by Ksh172.1 billion.
Missed Revenue Goals
The government had projected revenue collection of Ksh2.46 trillion for the 2023/24 financial year but managed only Ksh2.29 trillion. According to the Treasury, all revenue categories underperformed during this period.
“Ordinary revenue collection in FY 2023/24 amounted to Ksh2.29 trillion against a target of Ksh2.46 trillion,” the Treasury stated in its report.
Kenya's revenue fell short by KES 43B (Jul–Oct 2024), with VAT missing its target by KES 21.7B.
— Mwango Capital (@MwangoCapital) November 21, 2024
Ordinary revenue grew 3% YoY to KES 850.1B but missed the KES 882.3B target.
The Treasury is calling for improved collections as spending cuts are implemented.
[Business Daily] pic.twitter.com/uyTPpRH5P0
Treasury Responds with Optimism
In response to Nyoro’s concerns, Treasury Principal Secretary Chris Kiptoo acknowledged the shortfalls but expressed optimism about future performance. He explained,
“You will see that in July the Kenya Revenue Authority (KRA) missed its target by Ksh35 billion, in August the target was missed by Ksh25 billion, and in September the target was missed by Ksh10 billion.”
Kiptoo also assured the committee that the government is taking steps to reduce borrowing costs and improve financial management. He stated,
“We are taking measures together with the Central Bank towards lowering our borrowing costs.’’
Stricter Budgetary Oversight
Moving forward, the Treasury pledged to enforce greater accountability among state departments and agencies. PS Kiptoo emphasized that funding would no longer be automatically allocated but would require detailed justification.
The government will ensure that all state agencies provide clear justifications for their expenditures. This is part of the commitment to prudent financial management.
