This archive report was first published on 27 April 2020.
As the country grapples with the economic impact of Covid-19, a recent report from the National Treasury has highlighted the need for the government to reassess its spending habits.
According to the report, Kenya's tax collections remained flat in the third quarter of 2019, standing at Sh340.67 billion between January and March, compared to Sh339.27 billion in the same period the previous year.
Meanwhile, the Controller of Budget report shows that public sector spending continues to grow unchecked, raising concerns about the country's ability to meet its financial obligations.
One area of concern is the high spending on foreign and domestic travel by Members of County Assemblies (MCAs), which reached Sh6.58 billion in the first half of the fiscal year, the highest in a similar period since the start of devolution in 2013.
Given these spending trends, the efforts to bridge the budget gap are unlikely to achieve the desired results. To address this, the Treasury should review spending on non-essential vote heads and tighten the noose on wastage, with the support of the national and county governments.
It is time for the government to adjust and align expenditure to the reality of constrained revenue occasioned by the economic slowdown.
