This archive report was first published on 22 April 2020.
On April 22, 2020, the Treasury faced criticism for including new projects in the supplementary budget aimed at mitigating the effects of the Covid-19 pandemic.
According to a report by the Parliamentary Budget Office (PBO), the Treasury violated Article 223 of the Constitution and Section 44 of the Public Finance Management (PFM) Act by introducing the projects.
The PBO report, presented to the Budget and Appropriations Committee (BAC), highlighted that the National Treasury allocated Sh1.5 billion to the Nairobi Metropolitan Services (NMS) and Sh1.8 billion for the rehabilitation of the Nairobi-Nanyuki railway, which were not factored in the 2019/20 budget.
Article 223 of the Constitution allows the national government to spend money not appropriated by Parliament if the amount budgeted for was insufficient or if a need has arisen for expenditure due to a natural disaster or emergency.
However, the PBO report noted that the allocation of Sh1.5 billion to the NMS may not be directly related to the fight against the pandemic, and the proposed allocation lacks detail on the programmes it will deliver.
As the report states, 'It is imperative to note that the PFM Act prohibits introducing new programmes at the supplementary stage.'
