State entertainment spend doubles to Sh1.7bn

President Uhuru Kenyatta (centre) is seen off by Deputy President William Ruto at the Jomo Kenyatta International Airport last year as he left for the US to attend the United Nations General Assembly. PHOTO | FILE 

By KIARIE NJOROGE, gkiarie@ke.nationmedia.com

In Summary

• In the past, Mr Rotich has asked government officers and institutions to utilise government-owned catering facilities rather than outside venues for meetings to cut costs. This directive was later relaxed to prop up an ailing tourism sector.
• The hospitality spending for the Foreign Affairs ministry also saw a substantive jump from Sh33 million to Sh119 million. The ministry hosted the 10th World Trade Organisation (WTO) Ministerial Conference in December at the Kenyatta International Convention Centre.

Kenya’s spending on catering and entertainment nearly doubled to Sh1.71 billion in the six months to December amid austerity calls and missed tax revenue targets.

The Controller of Budget (CoB) report for July-December 2015 shows that the hospitality spend rose to Sh1.71 billion from Sh873 million for the corresponding period in 2014.

The 96.7 per cent rise comes at a time the Jubilee government is calling for spending cuts in non-priority areas to boost development disbursements in key areas like health and education.

The biggest increase was recorded by the Presidency, which comprises the offices of the President and the Deputy President, with its hospitality budget rising from Sh154 million to Sh627 million.

READ: Uhuru, Ruto travel, entertainment spend hits Sh1bn

The increase came in a period when President Uhuru Kenyatta hosted his American counterpart Barack Obama— the first visit by a sitting US President and Italian Prime Minister Matteo Renzi. The country also hosted Pope Francis in December last year.

Besides the Presidency, other heavy spenders include the Treasury whose hospitality expenditure grew by nearly 200 per cent from Sh51 million to Sh151 million. The sizable growth in spending by the ministry is at odds with Treasury Secretary Henry Rotich’s constant calls for reduction in hospitality expenditure.

Utilise government facilities

In the past, Mr Rotich has asked government officers and institutions to utilise government-owned catering facilities rather than outside venues for meetings to cut costs. This directive was later relaxed to prop up an ailing tourism sector.

Government conferences offer a lucrative income source for private hotels and lodges as public officers hold retreats and other events outside their offices, with the taxpayer picking up the tab.

The hospitality spending for the Foreign Affairs ministry also saw a substantive jump from Sh33 million to Sh119 million. The ministry hosted the 10th World Trade Organisation (WTO) Ministerial Conference in December at the Kenyatta International Convention Centre.

The entertainment spending by the Ministry of Labour and Social Services shot up tenfold from Sh7.8 million in 2014 to Sh80.7 million in the six months last year. Parliament was among those who saw a drop in their catering expenditure— spending Sh103.5 million— down from Sh126 million.

Kenya is set to host UK Prime Minister David Cameron in June. Multiple heads of states and over 6,000 delegates are also expected in the country in August for the 6th Tokyo International Conference on African Development (TICAD VI) Summit which will be held in Africa for the first time.
There’s pressure to cut down on non-priority expenditure like hospitality and travel in the face of revenue shortfalls.

The Kenya Revenue Authority (KRA) is likely to miss its full-year collection target of Sh1.2 trillion after realising Sh687 billion by the end of February, leaving it with just four months to raise the balance.

Mr Kenyatta in February asked all government agencies including county governments to cut their budgets for travel and allowances to public officers by 50 per cent.