State agencies’ failure to spend allocated funds raises concern among MPs

State agencies’ failure to spend allocated funds raises concern among MPs

Tanui told the committee that the ICT Authority had not requested the release of the funds because a substantial amount of money had been carried forward as unutilised funds from the 2022/2023 financial year.

Members of Parliament have raised concerns over unspent government project funds, questioning why some state departments fail to use their allocations while others struggle to secure enough money to carry out planned activities.

Legislators on the Public Accounts Committee said the Auditor General had repeatedly highlighted the issue, raising questions about how government agencies plan for and use their allocated resources.

The concerns emerged on Tuesday, when the committee, chaired by Butere MP Tindi Mwale, questioned the Principal Secretary for the State Department for Information Communication and Technology, John Tanui, over audit queries in the Auditor General’s Report for the 2023/2024 financial year.

During the session, members sought explanations for the department’s failure to fully use funds allocated to various projects, noting that some government agencies continue to leave money unspent even as others face shortages that affect their planned activities.

One project examined was the Horn of Africa Gateway Development Project, which received an allocation of Sh130 million. However, the National Treasury released only Sh59.03 million, representing about 45.4 per cent of the total amount.

Tanui told the committee that the ICT Authority had not requested the release of the funds because a substantial amount of money had been carried forward as unutilised funds from the 2022/2023 financial year.

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The explanation came as legislators examined the reasons behind the failure to fully use available resources and the impact of unspent funds on government projects.

The Principal Secretary also attributed the underutilisation of Sh9.15 million in remitted funds to delays in road construction by the Kenya National Highways Authority (KeNHA).

He explained that the installation of optic fibre cables under the ICT component of the project depends on the progress of road construction, meaning delays in the road works affect the implementation of the related ICT activities.

The committee’s concerns centred on the use of public resources, particularly where allocations are not fully spent despite competing funding needs across government departments.