By Billy Mijungu
The recently released report by the Controller of Budget has laid bare a disturbing reality. Between July 2024 and February 2025, national and county governments withdrew 1.3 trillion shillings manually instead of using the automated system.
These are imprests, often prone to abuse, mismanagement, and outright theft. This revelation only scratches the surface of Kenya’s deeper financial problem, an expenditure crisis.
For years, we have been told that Kenya has a revenue problem. That narrative has been used to justify aggressive tax measures that have burdened businesses and households. However, the truth is now evident. We do not have a revenue problem.
We have an expenditure problem. Our public funds are being wasted through unnecessary domestic subsistence allowances, excessive per diems, inflated salaries, and inefficient revenue collection by county governments. Money is being stolen at an alarming rate, while development projects are left underfunded.
It is not that we lack money for development.
In fact, our development budget absorption level is remarkably low. The government has more money than it can spend efficiently. Instead of directing funds towards critical infrastructure, social services, and economic growth projects, billions are being lost through poor financial management.
Worse still, the country is under the heavy strain of debt. Yet, if we streamlined our expenditure, Kenya could easily service its debts and clear them within five years.
The National Treasury must take decisive action.
The Controller of Budget’s report should serve as a wake up call. We need urgent measures to tighten controls on government spending. One of the most effective solutions would be to revive and strengthen the Efficiency Monitoring Unit. However, this time, it should not be a passive entity issuing reports that gather dust in government offices. It should be a fully fledged State Department for Efficiency.
This department, referred to as SDE, should have a Principal Secretary who reports directly to the President. It should be empowered to oversee and audit government spending across all ministries and county governments. Every accounting officer should be required to report their expenditure to this office, ensuring that every shilling is used efficiently.
The role of SDE would be clear—to curb wasteful expenditure and redirect resources towards productive use. It should have the authority to halt unnecessary spending, question dubious transactions, and demand accountability from government institutions. Every shilling saved from wasteful expenditure is a shilling that can be used to build roads, equip hospitals, educate children, and develop the economy.
SDE should also ensure that county governments maximize the collection of their own source revenues. Counties must account for every coin generated and collected. More importantly, county governments should adopt a financial discipline model where their own revenues are the first charge for recurrent expenditures.
This would reduce overreliance on the national government and promote financial sustainability at the county level.
If Kenya is to break free from the cycle of debt and underdevelopment, we must take a firm stand against financial inefficiency. The government must prioritize fiscal discipline, and a State Department for Efficiency would be the perfect tool to achieve this.
The time for action is now. The President and the National Treasury must move swiftly to implement measures that ensure taxpayers’ money is used for the benefit of the nation, not for the enrichment of a few. Kenyans deserve a government that spends wisely and delivers results.
