Written By Lisa Murimi
National Assembly Budget Committee Chairperson Ndindi Nyoro criticized the National Treasury on Wednesday, November 20, for failing to meet revenue projections and prioritizing recurrent expenses over development spending.
Speaking during the Budget Appropriations hearing, Nyoro highlighted a decade-long trend of revenue collection shortfalls, with ordinary revenue consistently reaching only 67% of targets.
“Why do we keep setting higher targets when we consistently miss them?” Nyoro questioned, referencing the Ksh 172.1 billion revenue gap in the 2023/24 financial year.
The Treasury had aimed to collect Ksh2.46 trillion but achieved only Ksh2.29 trillion.
Treasury Principal Secretary Chris Kiptoo acknowledged the underperformance, noting that monthly revenue shortfalls ranged from Ksh10 billion to Ksh 35 billion between July and September.
Kiptoo assured lawmakers that steps are being taken to address these issues, including aligning revenue targets with economic realities and implementing stricter financial oversight for state agencies.
The government also plans to reduce borrowing costs through measures in collaboration with the Central Bank.
As of July 2024, Kenya’s public debt stood at Ksh10.6 trillion, intensifying concerns over borrowing amidst revenue struggles.
The Treasury expressed optimism that improved economic indicators, including lower inflation, will aid in meeting revenue and budgetary goals for 2025/26.
