Rotich summoned over financial crisis

National Treasury Cabinet Secretary Henry Rotich (left) and Principal Secretary Kamau Thugge at a past event. MPs have summoned the CS to explain the financial crisis. PHOTO | EVANS HABIL | NATION MEDIA GROUP

By  JOHN NGIRACHU

What you need to know:

  • The Budget and Appropriations Committee reached the decision after the Treasury principal secretary failed to attend a planned meeting with the MPs and later told committee chairman and Mbeere South MP Mutava Musyimi that he would prefer to have his boss present.
  • Moving the meeting to Thursday gives the Treasury more time to prepare, with Mr Rotich expected back in the country after attending a meeting of the World Bank and the International Monetary Fund in Lima, Peru.
  • MPs were alarmed when the Parliamentary Budget Office produced an analysis showing half of revenue collected in the first three months of the financial year was used to pay public debt.

MPs have summoned Treasury Cabinet Secretary Henry Rotich to explain the financial crisis.

The Budget and Appropriations Committee reached the decision after the Treasury principal secretary failed to attend a planned meeting with the MPs and later told committee chairman and Mbeere South MP Mutava Musyimi that he would prefer to have his boss present.

“This matter is too big for the PS,” said Mr Musyimi.

Also Read

According to Mr Musyimi, Principal Secretary Kamau Thugge said he received written questions from the committee an hour before the time scheduled for the meeting and was thus reluctant to meet the MPs.

Dr Thugge missed another meeting with the panel on Thursday as he was in a meeting with National Assembly Speaker Justin Muturi.

MPs SURPRISED

Some MPs were surprised that the PS was willing to attend the meeting last Thursday but was unable to do so yesterday, raising questions about the Treasury’s willingness to respond to the concerns.

Moving the meeting to Thursday gives the Treasury more time to prepare, with Mr Rotich expected back in the country after attending a meeting of the World Bank and the International Monetary Fund in Lima, Peru.

MPs were alarmed when the Parliamentary Budget Office produced an analysis showing half of revenue collected in the first three months of the financial year was used to pay public debt.

LIQUIDITY CRISIS

The analysis showed that the Sh132.6 billion spent on public debt was 49.1 per cent of the total revenue receipts for the same period.

Economists and budget experts at the Parliamentary Budget Office said the situation was worsened by the combination of low revenue collection, the depreciation of the shilling and the high cost of domestic borrowing.

Among issues MPs raised at Thursday’s meeting were why there is a liquidity crisis and why the government is unable to raise the revenue. They also wanted to know why there are delays in disbursing money to ministries and agencies.

In the headlines