Parliament was on edge Thursday as MPs demanded answers on why over Ksh1.8 billion allocated to Kenyan embassies remains unspent, years after it was budgeted for operations and development projects.
The Public Accounts Committee (PAC), which is scrutinising the State Department for Foreign Affairs’ audited accounts for the year ending June 2023, described the unutilised funds as a “serious accountability lapse.”
Auditor-General Nancy Gathungu’s report revealed that Ksh1,885,098,283 had piled up over the years because missions failed to return unused allocations at the close of each financial year.
But Principal Secretary for Foreign Affairs, Dr Abraham Korir Sing’oei, defended the matter, saying the money was not idle.
“The money represents development cash flow balances held across various missions and not idle funds,” Dr Sing’oei told the committee chaired by Butere MP Tindi Mwale.
He explained that part of Washington DC’s balance was being held for contractors’ retention payments for completed works awaiting the expiry of the defects liability period before handover. Funds were also allocated for ongoing refurbishment.
For the London mission, the PS said the money had been earmarked for the purchase of a Chancery property, but the deal stalled because the Attorney-General had not yet approved the procurement of a conveyancing lawyer to finalise documentation.
“While the property had been identified and the procurement process finalised, the funds could not be spent because the Attorney-General had not yet given concurrence,” he noted.
He further disclosed that part of the London sum came from revenue generated locally through consular services, which was later adjusted under Supplementary Estimate No. 2 of FY 2023/24.
Even so, Dr Sing’oei admitted that some missions had failed to transfer balances into deposit accounts at the end of the financial year, promising stricter measures going forward.
“Such balances will now be placed into deposit accounts, from where payments will be effected for completed works, certified and billed, or for property acquisitions,” he assured.
Despite the explanations, MPs remained unconvinced.
Bura MP Yaqub Adow questioned the opacity, asking:
“What is the difficulty in apportioning this figure across the three items? How do we establish how much of the Sh1 billion is tied to Washington, Addis Ababa, London development, or London revenue?”
Aldai MP Marianne Kitany demanded documentation on the London property deal, saying:
“This raises questions: does it mean the procurement was undertaken without legal representation in the first place?”
Senior Counsel and Rarieda MP Otiende Amollo also criticised the delays.
“Everything else has been completed, yet we are told the delay is due to a pending letter from the Attorney General,” he said.
Dr Sing’oei confirmed that the AG has since approved the London process.
