NAIROBI, Kenya— Controller of Budget Margaret Nyakang’o has raised alarm over mounting government wastage, pointing to ballooning travel expenses and unnecessary loan commitment fees as major contributors to the country’s deepening debt crisis.
Appearing before the National Assembly Committee on Public Debt and Privatisation on Friday, Nyakang’o warned that unless the government reins in its appetite for non-essential expenditure, Kenya risks defaulting on its financial obligations.
“If we continue doing the wrong things, then we are headed in the direction of defaulting,” Nyakang’o told lawmakers. “But if we amend our ways… we will make massive savings and we will not need to borrow as much.”
Sh9.5 Billion Spent on Travel
Government travel, both foreign and domestic, has already consumed more than Ksh.9.5 billion in the current financial year, a figure Nyakang’o described as excessive and unsustainable.
She recounted a trip to Istanbul, Turkey, under the Institute of Certified Public Accountants of Kenya (ICPAK), where she said the venue was “full of Kenyans” and even facilitated by a Kenyan firm.
“What you ask yourself is, why didn’t these people sit in Mombasa and have a Kenyan facilitate them? Did they have to fly to Istanbul?” she asked.
Loan Fees Paid Without Spending the Loans
Nyakang’o also flagged the costly practice of paying commitment fees on loans that remain unutilised due to delays in project readiness.
Kenya paid Ksh.770.5 million in such fees in just the first nine months of the 2024/25 financial year.
“We found out that we sign loans before the project implementers are ready. They’re surprised to be told there’s money for them,” she said. “So, the sinking of the funds is not aligned to project readiness.”
These inefficiencies, she noted, compound the pressure on public finances and inflate the debt servicing burden—at a time when the government is already struggling to meet its obligations.
Pensions Delayed, Recurrent Costs Rising
Despite tight finances, government spending on salaries, allowances, and miscellaneous costs is projected to grow from Ksh.4.08 billion to Ksh.4.67 billion.
Meanwhile, disbursement of pensions and gratuities has lagged far behind.
Only Ksh.115 billion has been released so far this financial year—barely half of the Ksh.223 billion provided in the budget.
Nyakang’o blamed part of this on requests made under Article 223 of the Constitution, which allows spending outside the budget framework in emergencies.
“Just when we’ve collected enough from KRA to pay something like pensions, I find six requests under Article 223—people need to spend outside the budget, and they need it now,” she said.
To restore fiscal discipline, the Controller of Budget urged the government to undertake rigorous debt audits to inform smarter borrowing and repayment strategies.
