Home Business Rigathi Gachagua gets first batch of cash to settle debt left by President Ruto as DP

Rigathi Gachagua gets first batch of cash to settle debt left by President Ruto as DP

by kenya-tribune
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Economy

Rigathi Gachagua gets first batch of cash to settle debt left by President Ruto as DP


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Deputy President Rigathi Gachagua at the Kenya School of Government on April 27, 2023. PHOTO | LUCY WANJIRU | NMG

The Office of the Deputy President Rigathi Gachagua has started clearing bills incurred by his predecessor after his budget was slashed under the previous regime, Treasury data showed Friday.

The second-highest office in the land withdrew Sh81.09 million from the government’s main account in April under the special Sh849.20 million budget that was created to pay arrears when President William Ruto was Deputy President.

The release of part of the funds makes the Office of the Deputy President, the second to get direct funding from the exchequer among the 13 new budget votes created when Dr Ruto took power and was approved by lawmakers in late February.

The other office is that of the Inspector-General of the National Police Service Japhet Koome which received Sh7.52 billion in April out of Sh24.60 billion allocation.

The new vote for the police was created after Dr Ruto’s directive that the funding be independent of that of the Interior Ministry in a policy shift from his predecessor, Uhuru Kenyatta.

The remainder of 11 newly-created budget votes for offices formed by Dr Ruto’s administration, including that for Prime Cabinet Secretary Musalia Mudavadi, were yet to get a shilling directly from the government’s main account at the Central Bank of Kenya two months to the end of the current financial year in June.

Mr Gachagua, whose main budget falls under the Executive Office of the President, said in March the additional special funding will be spent on debts occasioned by inadequate funding during the tenure of his predecessor, Dr Ruto, including arrears to staff.

Read: Ruto, Gachagua offices burst annual budget in 7 months

“For four years, President William Ruto when he was Deputy President fueled government cars from his pocket. For four years he bought tea and paid electricity bills for the office. For four years, he paid allowances to staff accompanying him across the country,” the DP said on March 12 when he granted media houses a joint interview.

“When he [Dr Ruto] became president-elect, the officers who were attending meetings in his office felt embarrassed and they sought to undo what they had done to save face. The [Deputy President] had nothing to do with it; that is their work.”

The Treasury data suggests that newly-created offices under the Ruto administration were still relying on other established ministries and departments for funding for day-to-day operations pending the completion of necessary paperwork.

Director-General for Budget, Fiscal and Economic Affairs at the Treasury Albert Mwenda said last month’s delay in granting credentials to new offices to withdraw funds usually occurs during the transition of power from one administration to the next.

“As with any new vote [State ministry, department or agency], there are logistical arrangements that have to be put in place to facilitate the operations of a vote,” Mr Mwenda told the Business Daily on April 17. 

“The offices…are well funded and facilitated through other votes or other legal provisions that allow for funding of new offices pending approval and that’s how they are able to operate.”

Dr Ruto is arguably presiding over the most bloated government since independence, having increased state departments to 51 from his predecessor’s 44 and further appointed 50 chief administrative secretaries against 29 previously.

Lawmakers in February increased allocation for the day-to-day running of the national government, including operation and maintenance of offices as well as pay for workers, for the current financial year to Sh1.27 trillion from Sh1.18 trillion.

Read: Ruto, Rigathi, Mudavadi get Sh802m for new cars

The mini-budget saw Mr Mudavadi’s office, which also falls under the Executive Office of the President, allocated a special budget vote of Sh771.91 million allocation and was yet to withdraw a coin directly under that vote by April.

The delayed direct funding has affected votes under State departments of Internal Security and National Administration which was allocated Sh8.09 billion in the revised budget, Foreign Affairs (Sh4.65 billion), Forestry (Sh2.15 billion), Diaspora Affairs (Sh700 million), Micro, Small and Medium Enterprises (Sh416.92 million) and Mining (Sh212.72 million), among others.

“Report on [exchequer] issues will appear once a Vote has been approved by Parliament and funds issued by Exchequer against that Vote,” Mr Mwenda said.

The recurrent expenditure for running the national government stood at Sh905.81 billion in 10 months through April, according to the Treasury, Sh21.44 billion less than the same period the year before.

 cmun[email protected]

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