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Uhuru signs law for use of Sh73.4bn from Consolidated Fund

Thursday December 05 2019
UK

President Uhuru Kenyatta signs into law the second Supplementary Appropriation Bill of 2019 at State House in Nairobi on December 5, 2019. PHOTO | PSCU

By BRIAN OKINDA

President Uhuru Kenyatta has signed into law the second Supplementary Appropriation Bill in 2019, which will see release of Sh73.4 billion from the Consolidated Fund.

According to a communiqué by the presidency, the money will be used to fund government services and projects for the period ending June 30, 2020.

This Appropriation Bill, is however, the first signed by the President in the current financial year, which began on July 1.

RECENT SIGNINGS

On June 20, President Kenyatta signed the first Supplementary Appropriation Bill, 2019, legalising an expenditure of Sh161 billion, even though it had not been appropriated by the National Assembly.

But this was in line with Article 223 of the Constitution, which specifies that the government can spend money not appropriated by the National Assembly on emergencies such as droughts, floods and insecurity.

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This law states, however, that the government must seek approval from members of Parliament within two months of expenditure.

On June 28, President Kenyatta signed Appropriation Bill, 2019, sanctioning use of Sh1.4 trillion from the Consolidated Fund for service delivery.

The second Supplementary Appropriation Bill, 2019, was presented to the President for signing by National Assembly Speaker Justin Muturi.

Also present during the brief signing were National Assembly majority leader Aden Duale, acting National Treasury CS, Ukur Yatani, Attorney-General Paul Kihara, National Assembly Clerk Michael Sialai and State House Deputy Chief of Staff Njee Muturi.

SHORTFALL

In the 2019/20 budget the government planned to spend Sh3.02 trillion by the end of June 30, 2020, with Sh2.09 trillion raised by Treasury and Sh1.9 trillion in ordinary revenues.

Former Treasury CS Henry Rotich’s projection was however slashed to Sh1.85 trillion, given the revenue shortfall in the previous financial year and the first two months of the current one.

Treasury was thus required to prepare supplementary estimates, which acting CS, Yatani presented to the Cabinet for approval before tabling in the National Assembly.

The supplementary budget was submitted with the deficit of projected revenues and support for the Big Four plan being the validations given.

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