Senator Omtatah Statement on Withdrawal of Ksh. 19 Billion From Consolidated Fund for State Expenses

Mr. Speaker, Sir, I rise, pursuant to Standing Order 53(1), to seek a Statement from the Standing Committee on Finance and Budget on a matter of national concern, regarding the withdrawal of Kshs. 19,707,023,574 from the Consolidated Fund under the vote item "State Officers' Salaries, Allowances, and Miscellaneous" in January 2025.

Mr. Speaker, Sir, According to the Statement of Actual Revenue and Net Exchequer Issues for the 2024/2025 Financial Year, published by the Cabinet Secretary for the National Treasury and Economic Planning through Gazette Notice No. 1864 (misdated 10th February, 2024), the budgeted allocation for this vote item was Kshs. 4,209,674,431. This amount covers salaries and allowances for the President, Deputy President, Judges, Attorney General, Auditor-General, Controller of Budget, members of Constitutional Commissions, and other State officers.

Mr. Speaker, Sir, The monthly estimated disbursement should average Kshs. 350,806,203. However, by 31st December 2024, the cumulative disbursement stood at Kshs. 1,723,787,530, implying an average of Kshs. 287,297,922 per month. Accordingly, the expected cumulative figure for January 2025 would have been approximately Kshs. 2,011,085,451, yet, the actual cumulative payment reported by end of January 2025 was Kshs. 21,718,109,025, indicating an overpayment of Kshs. 19,707,023,574 in a single month.

Notably, in February 2025, the reported monthly disbursement dropped back to Kshs. 301,385,053, bringing the cumulative amount to Kshs. 22,019,494,078 as per Gazette Notice No. 3354 (also misdated 10th February, 2024).

In the Statement, the Committee should address the following:

1. The justification for the payment of Kshs. 19,707,023,574 in January 2025, against an expected monthly allocation of approximately Kshs. 287,297,922 and why this amount was recorded under "State Officers' Salaries, Allowances, and Miscellaneous."

2. Disclosure of the recipients of the excess Kshs. 19,707,023,574, including a breakdown of payments and confirmation of whether any new employment or reclassification occurred within that month.

3. Clarification on who authorized the withdrawal of the unbudgeted Kshs. 19,707,023,574 from the Consolidated Fund, and whether the withdrawal followed due process under the Public Finance Management Act and the Constitution.

4. The remedial steps taken by the National Treasury, including whether investigations have been initiated, if the funds are being recovered, and what actions are being taken against responsible officials.

5. The measures instituted by the National Treasury to prevent similar unauthorized withdrawals from the Consolidated Fund in the future, including internal control reforms and audit mechanisms.

SEN. ANDREW OMTATAH, MP

Senator, Busia County

DATE: 6th May, 2025