Govt Allocates Ksh2.5 Billion for Haiti Mission in Supplementary Budget

In Summary

• The government has allocated Ksh2.5 billion for Kenya’s Haiti mission in the supplementary budget — more than Kenyatta National Hospital’s Ksh1.7 billion allocation — bringing the mission's cost to Ksh4.5 billion in 9 months.
• National ID cards will now be free for all Kenyans, as President Ruto scraps the Ksh300 first-time and Ksh1,000 replacement fees.
• KUSCCO plans to sell a majority stake in KUSCCO Mutual Assurance and auction assets to repay Saccos after the Ksh13.3 billion scandal.
• The National Treasury seeks Ksh17.6 billion to settle KRA debts, including Ksh6 billion from unpaid previous budgets and Ksh3.62 billion owed to a Swiss firm for excise stamps. KRA’s negative working capital stands at Ksh9.36 billion.
• Government travel expenses hit Ksh9.56 billion in the first half of FY 2024/25 — Ksh6.47 billion for domestic trips and Ksh3.11 billion for foreign travel. MPs spent Ksh3.89 billion, while the Presidency spent Ksh543.4 million.

In a report by Nation, Kenya's National Police Service has received a Ksh7.5 billion boost in the latest supplementary budget, with Ksh2.5 billion earmarked for the Haiti security mission — an amount higher than Kenyatta National Hospital’s allocation of Ksh1.7 billion. The funds will support over 600 Kenyan officers deployed to Haiti as part of a multinational effort to curb gang violence, with President Ruto assuring continued U.S. backing despite broader U.S. aid freezes. The remaining Ksh5 billion will cover police insurance shortfalls. The mission in Haiti has in 9 months cost taxpayers Ksh4.5 billion. Although part of the funds may later be reimbursed by the UN, Kenya initially covers expenses including equipment, allowances, and logistics. 

In a report by the People Daily, President William Ruto has announced that Kenyans will now receive national identity cards free of charge, scrapping the Ksh300 fee for first-time applicants and Ksh1,000 for replacements. Speaking in Kibra, Nairobi, Ruto emphasized that the issuance of IDs will be fair and non-discriminatory, affirming that all Kenyans, regardless of their community or origin, are entitled to identification documents. Immigration PS Julius Bitok added that marginalized groups, including border communities, prisoners, and students, will be prioritized in a new registration drive to boost SHA access. 

According to Nation, Kenya Union of Savings and Credit Cooperatives (KUSSCO) is planning to sell a majority stake in its insurance subsidiary, KUSCCO Mutual Assurance, along with auctioning houses and land held by loan defaulters, to raise funds to repay savings and credit cooperative societies (SACCOs) following the Ksh13.3 billion scandal. According to Cooperatives Cabinet Secretary Wycliffe Oparanya, KUSCCO will also discontinue its housing subsidiary, KUSCCO Housing Cooperative, and replace the Central Finance Fund (CFF) with a new Sacco Liquidity Fund (SLF), which will operate under Sacco Societies Regulatory Authority (Sasra) regulations. Proceeds from the asset sales will partly fund SLF and be used to refund Saccos. Kuscco will refocus on advocacy and training, and a new nine-member board will be appointed as part of the restructuring.

The National Treasury is seeking Ksh17.6 billion in the next financial year to settle debts owed to the Kenya Revenue Authority (KRA), including Ksh6 billion from previous budgets that were approved but never disbursed. Treasury PS Chris Kiptoo says the delayed funds have turned into debts owed to KRA staff, contractors, and suppliers, accruing interest and penalties. KRA also owes a Swiss firm Ksh3.62 billion for excise stamps. Additionally, the Treasury wants to allocate Ksh11.57 billion for KRA staff costs and operations for 2025/26. The Auditor-General has flagged KRA's weak financial position, with a negative working capital of Ksh9.36 billion as of June 2024 as reported by the Business Daily.

Government travel expenditure for the first six months of FY 2024/25 totaled Ksh9.56 billion, with domestic travel accounting for Ksh6.47 billion and foreign travel Ksh3.11 billion, according to the Controller of Budget. According to the Business Daily, MPs alone spent Ksh3.89 billion, while the Presidency—comprising the offices of the President, Deputy President, State House, and Prime Cabinet Secretary—spent Ksh543.4 million. Additional significant spending was recorded by the Ministry of Foreign Affairs at Ksh1.59 billion, the Ministry of Interior at Ksh1.17 billion, and the Auditor-General at Ksh628.6 million, with an extra Ksh2.09 billion spent on hospitality across various government offices.