‘You Have Many Mistakes!’ – Ndindi Nyoro Tells Treasury After Reckless Borrowing
Ndindi Nyoro, Chairperson of the National Assembly Budget Committee, slammed the National Treasury on Wednesday, November 20, for failing to meet income estimates and setting imprecise budget targets.
During the Budget Appropriations hearing, Ndindi slammed the Treasury for prioritizing recurrent expenditure over development.
Nyoro also criticized the country’s continuing revenue shortfall, which has forced it to borrow more, despite local demand from Kenyans to halt borrowing.
“We keep making the same mistake all the time, for the last 10 years, our ordinary revenue has only been achieved at 67 per cent,” Ndindi stated.
Is Ndindi Nyoro planning to exit kenya kwanza government? pic.twitter.com/KzxXXDf6OI
— The Kenyan Vigilante (@KenyanSays) November 21, 2024
“If you keep having a downfall between our targets and the actual revenue, then why do we have to target higher?”
According to Treasury figures, Kenya’s state debt had reached approximately Ksh10.6 trillion as of July 2024.
Nyoro’s comments came as the Treasury announced in September’s 2024 Draft Budget Review and Outlook Paper that it missed its income objectives for the previous fiscal year by Ksh172.1 billion.
This comes after it set a revenue target of Ksh2.46 trillion but barely collected Ksh2.29 trillion.
“Ordinary revenue collection in FY 2023/24 amounted to Ksh2.29 trillion against a target of Ksh2.46 trillion. All ordinary revenue categories recorded below target performance during the period under review,” Treasury stated.
In response to the MP, the Treasury expressed confidence that the irregularities will be resolved in the following budget, 2025/2026.
Ndindi Nyoro Ladies and Gentlemen! pic.twitter.com/Yg6ygF4UMP
— Omwamba 🇰🇪 (@omwambaKE) November 21, 2024
According to Treasury Principal Secretary Chris Kiptoo, the government will align its aims with Nyoro’s expectations, particularly in terms of cutting inflation and other important economic indicators that have begun to trend positively.
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“You will see that in July the Kenya Revenue Authority (KRA) missed its target by Ksh35 billion, in August the target was missed by Ksh25 billion, and in September the target was missed by Ksh10 billion,” Kiptoo stated.
“We are taking measures together with the Central Bank towards lowering our borrowing costs,” Kiptoo added.
This occurs despite the Treasury PS revealing that the government would implement stricter measures to combat financial misconduct within government entities.
The PS also stated that the government will not automatically allocate funding to state departments and agencies, as they will be required to provide explanations for their expenditures.
‘You Have Many Mistakes!’ – Ndindi Nyoro Tells Treasury After Reckless Borrowing
