Report On Budget Implementation For The Fy 24/25 With Respect To Ten Government Agencies

REPUBLICOFKENYA

THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FOURTHSESSION-2025

COMMITTEEONADMINISTRATIONANDINTERNALSECURITY

REPORTONBUDGETIMPLEMENTATIONFORTHEFY2024/2025WITHRESPECT TO:-

• 1.EXECUTIVEOFFICEOFTHEPRESIDENT;
• 2.OFFICEOFTHEDEPUTYPRESIDENT;
• 3.OFFICEOFTHEPRIMECABINETSECRETARY;
• 4.STATEDEPARTMENTFORPARLIAMENTARYAFFAIRS;
• 5.STATEHOUSE;
• 6.STATEDEPARTMENTFORIMMIGRATIONANDCITIZENSERVICES;
• 7.NATIONALPOLICESERVICE;
• 8.STATEDEPARTMENTFORINTERNALSECURITYANDNATIONAL ADMINISTRATION;
• 9.NATIONALPOLICESERVICECOMMISSION;AND
• 10.INDEPENDENTPOLICINGOVERSIGHTAUTHORITY

DATE:

27 NOV 2025

TABLEOFCONTENTS

| PARTI. | |----------------------------------------------------------------| | 1.0PREFACE | | 1.1INTRODUCTION | | 1.2MANDATEOFTHECOMMITTEE | | 1.3SUBJECTSOFTHECOMMITTEE. | | 1.4COMMITTEEMEMBERSHIP | | 1.5COMMITTEESECRETARIAT. | | 1.6BUDGETOVERSIGHTBYTHEDEPARTMENTALCOMMITTEE | | 1.7ACKNOWLEDGEMENT.. | | PARTII. | | 2.0OVERVIEWOFOVERALLBUDGETANDEXCHEQUERISSUES | | PARTIII 10 | | 3.OSUBMISSIONSBYMINISTRIES,DEPARTMENTSANDAGENCIES 10 | | 3.1 EXECUTIVE OFFICE OF THE PRESIDENT (EOP) 10 | | 3.2 OFFICE OFTHEDEPUTYPRESIDENT. 1 | | 3.3OFFICEOFTHEPRIMECABINETSECRETARY | | 3.4STATEDEPARTMENTFORPARLIAMENTARYAFFAIRS 14 | | 3.5STATEHOUSE ..16 | | 3.6STATEDEPARTMENTFORIMMIGRATIONANDCITIZENSERVICES 16 | | 3.7NATIONALPOLICESERVICE .18 | | 3.SSTATEDEPARTMENTFORINTERNALSECURITYANDNATIONALADMINISTRATION | | 3.9 NATIONAL POLICE SERVICE COMMISSION (NPSC) .21 | | 3.10INDEPENDENTPOLICINGOVERSIGHTAUTHORITY. 22 | | PARTIV 23 | | 4.0EMERGINGCONCERNS/COMMITTEEOBSERVATIONS 23 | | PARTV 25 | | 5.0COMMITTEERECOMMENDATIONS 25 |

LISTOFACRONYMSANDABBREVIATIONS

ADA

• Alcohol and Drug Abuse

AIA

-Appropriations in Aid.

BETA

• Bottom-up Economic Transformation Agenda

CCIO

-Constitutional Commissions and Independent Offices

ETA

-Electronic Travel Authorization

• Financial Year

GP

• Government Printer

GPRS

-General PacketRadioService

IBEC

• Intergovernmental Budget and Economic Council

IGRTC

-IntergovernmentalRelationsTechnical Committee

IPOA

• Independent Policing Oversight Authority.

IPRS

• Integrated Population and Registration Services

KPIs

• Key Performance Indicators

KVSR

• Kenya Vital Statistics Report

MDAs

• Ministries, Departments and Agencies.

NCE

• Nairobi Coffee Exchange

NGA

-National GovernmentAdministration

NGOs

• Non-Government Organizations

NPS

• National Police Service.

NPSC

-National Police Service Commission.

ODP

• Office of the Deputy President.

ODPP

-Office of theDirector of PublicProsecutions

OSDP

• Office of the Spouse to the Deputy President.

SUD's

-Substance Use disorders

SAGAs

-Semi-Autonomous GovernmentInstitutions

TADAT

-Tax Assessment Diagnostic Administration tool

• United Nations.

NN

1.0PREFACE

1.1 Introduction

1. Thisis thereport of theDepartmental Committee onAdministration andInternal Security on thereviewofBudgetImplementationfortheFY2024/2025withrespecttoMinistries, Departments andAgencies(MDAs)oversighted by the Committee.TheMDAsinclude the Executive Office of the President, Office of the Deputy President, Office of the Prime Cabinet Secretary, State Department for Parliamentary Affairs, State Department for National GovernmentCoordination,StateDepartmentforCabinetAffairs,StateHouse,StateDepartment for Immigration & Citizen Services, National Police Service, State Department for Internal Security and National Administration,National Police Service Commission and Independent Policing Oversight Authority. 2. 2.The report contains the Observations, and the Recommendations of the Committee as regards to theBudgetImplementationpursuant toArticle 226oftheConstitution.

1.2MandateoftheCommittee

• 3.TheDepartmental Committee onAdministrationandInternal SecurityoftheNational Assemblyis established underStandingOrder 216whosefunctionspursuant to theStanding Order 216 (5) are as follows: -
• a. investigate, inquire into, and report on all matters relating to the mandate,management, activities, administration,operations andestimatesoftheassignedMinistries anddepartments;
• b study the programme and policy objectives of Ministries and departments and the effectiveness of the implementation;
• C. onaquarterlybasis,monitorandreport ontheinplementationofthenationalbudgetinrespect of its mandate;
• d. studyandreview all legislationreferredtoit;
• e. study,assessandanalyzetherelativesuccessoftheMinistriesanddepartmentsasmeasuredbythe resultsobtainedascomparedwiththeirstatedobjectives;
• f. investigateandinquireintoallmattersrelatingtotheassignedMinistriesanddepartmentsasthey may deemnecessary,and asmaybereferred to themby theHouse;
• vetandreportonallappointmentswheretheConstitutionoranylarwrequirestheNationalAssembly g toapprove,ercept thoseunderStandingOrder204(CommitteeonAppointments);
• h. examinetreaties,agreements,andconventions;
• i. makereports andrecommendationstotheHouseasoftenaspossible,includingrecommendation of proposed legislation;

1. considerreportsofCommissionsandIndependentOfficessubmittedtotheHousepursuanttothe provisionsofArticle254oftheConstitution;and

• k. ExamineanyquestionsraisedbyMembers onamatterzeithinitsmandate.

PARTI

1.3Subjects of the Committee

• 4.In accordance with the Second Schedule of the Standing Orders, the Committee is mandated to consider the following subjects:-
• b.Public administration; and
• a. Home affairs, internal security - including police services and coast guard service;
• c. Immigration and citizenship

5. In terms of budget oversight, the Committee oversights the following Offices, Ministry and Agencies:

• a.Executive Office ofthe President, Vote 1011;
• c.Office of the Prime Cabinet Secretary, Vote 1013;
• b. Office of the Deputy President, Vote 1012;
• d.State Department for Parliamentary Affairs, Vote 1014;
• f.State House,Vote 1017;
• e.State Department for Cabinet Affairs, Vote 1016;
• g. State Department for National Government Coordination,Vote 1018
• h. StateDepartment for Immigration& Citizen Services,Vote 1024;
• i.National PoliceService,Vote1025;
• J. StateDepartmentforInternal Security&NationalAdministration,Vote1026;
• 1.Independent Policing Oversight Authority, Vote 2151.
• k.National Police Service Commission,Vote 2101;and
• 6.The Semi-Autonomous GovernmentInstitutions under the Committee include:-
• a.National Authority for Campaign Against Alcohol and Drug Abuse. (NACADA);
• c. NGO Coordination Board;
• b.Firearms Licensing Board;
• d.National Crime Research Centre;
• e.Private SecurityRegulatoryAuthorityBoard; and
• f.National Cohesion andIntegration Commission.

1.4 Committee Membership

• 7.The Committee comprises of the following Members: -

Hon. Gabriel Tongoyo,MP Chairperson NarokWest Constituency

Hon.Col.(Rtd.)DidoRasso,MBS,MP Vice Chairperson Saku Constituency

| Hon.KalumaGeorgePeter,MP Homa Bay Town Constituency | Hon Protus Ewesit Akujah,MP Loima Constituency | |-----------------------------------------------------------|-----------------------------------------------------------| | Hon. Aduma Owuor, MP Nyakach Constituency | Hon.Rozaah Akinyi Buyu,MP Kisumu West Constituency | | Hon. Fred C. Kapondi, MP Mt.Elgon Constituency | Hon. Caroline Ng'elechi, MP Elgeyo-Maralwet County | | Hon.Liza ChepkorirChelule,MP Nakuru County | Hon.(Dr.) Peter Francis Masara, MP Suna West Constituency | | Hon. Sarah Paulata Korere, MP Laikipia North Constituency | Hon. Francis Sigei, EBS, MP SotikConstituency | | Hon. Oku Kaunya, MP Teso North Constituency | Hon. Hussein Weytan, MP Mandera East Constituency, | | Hon. Mburu Kahangara, MP Lari Constituency | |

1.5CommitteeSecretariat

8. The Committee Secretariat consists of the following:

Mr. John Mugoma ClerkAssistant1 HeadofSecretariat

| Ms.Grace Wahu Clerk Assistant II | Mr. Gideon Kipkogei ClerkAssistantII | |-------------------------------------|--------------------------------------------| | Mr.EdisonOdhiambo Fiscal Analyst I | Ms.Clarah Kimeli Principal Legal Counsel 1 | | Ms. Judith Kanyoko Legal Counsel II | Ms. Delvin Onyancha Research OfficerI | | Mr. Rodgers Kilungya AudioOfficer | Mr.BensonKimanzi Serjeant-At-Arms |

Ms. Ivy Maritim MediaRelationsOfficerIHI

1.6 Budget Oversight by theDepartmental Committee

• 9.Article95of the Constitutionmandates the NationalAssemblytoappropriatefiundsfor expenditure by national government aswell as national state organs.It further envisages that the National Assembly exercises oversight overnational revenue and expenditure.
• 10.In thisrespect,the National Assembly is not only mandated to appropriatefunds for expenditure by the national government and othernational state organsbut also tooversight onhowvoted public resources are being applied in a transparent and efficient manner in the delivery of public goods and services. Thus, the Committee is required to monitor quarterly progress in implementing the approved budget and constantly engage the MDAs under their purview as stipulated in Article 228(6)of the Constitution,Section66(1h) and Section 83(5a) of the PFM Act, 2012 as well as Standing Orders 216(5)(ba) and 245A(2).

1.7Acknowledgement

11. The Committee is thankful to the Office of the Speaker and the Clerkof the National Assembly for the logistical and technical support accorded to it during the preparation of this Report. The CommitteeisalsothankfultoMembersoftheCommitteeandtheSecretariatfortheirdedication and useful expertise and insights duringthepreparation of thisreport. 2. 12.On behalf of theDepartmental Committee on Administration and Internal Security,it is my pleasant privilege and honor to present to the House the Report of the Committee on its assessmentoftheBudgetImplementationforFY2024/2025withrespecttotheMDAsunderour purview.Theyinclude Executive Office of the President,Office of the DeputyPresident, Office of thePrime Cabinet Secretary,StateDepartmentforParliamentary Affairs,StateDepartment for National Government Coordination,StateDepartment for Cabinet Affairs,State House,State Department for Immigration& CitizenServices,National Police Service,StateDepartment for Internal Security and National Administration,National Police Service Commission and IndependentPolicingOversightAuthority.

Hon.Gabriel Koshal Tongoyo,CBS,MP

Chairperson Departmental CommitteeonAdministration andInternal Security

PARTII

2.0OVERVIEWOFOVERALLBUDGETANDEXCHEQUERISSUES

13. A review of the overall budget shows that the total budget approved (Net) as at supplementary IHI amounted toKshs.4,206 billion but the exchequer issues amounted to Kshs.3,987.2 billion as summarizedinTable1below.

| TableI:SummaryofbudgetImplementationinKshs.Billions | TableI:SummaryofbudgetImplementationinKshs.Billions | TableI:SummaryofbudgetImplementationinKshs.Billions | TableI:SummaryofbudgetImplementationinKshs.Billions | TableI:SummaryofbudgetImplementationinKshs.Billions | |-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------| | VOTE | Revised Net Estimates (Kshs. Bn) | Exchequer Issues (Kshs. Bn) | % of Exch. Issues to Revised Net Estimates | % of Exchequer issues to total Issues | | Recurrent | 3,437.35 | 3,233.36 | 94 | 81 | | :MDAs | 1,448.60 | 1,442.66 | 100 | 36 | | :CFS | 1,988.75 | 1,790.70 | 90 | 45 | | Development (MDAs) | 351.34 | 335.08 | 95 | 8 | | Sub-Total | 3,788.69 | 3,568.44 | 94 | 90 | | County Governments* | 418.26 | 418.26 | 100 | 10 | | Total | 4,206.95 | 3,987.19 | 95 | 100 |

Source:ControllerofBudgetReport2025

2.1OverviewofRevenuePerformance

14. In FY 2024/25, total revenue, including Appropriations-in-Aid (AIA), amounted to Kshs. 2,923.6 billion (16.8 percent of GDP). This fell short ofthe target of Kshs.2,985.6 billion (17.1 percent of GDP) by Kshs 62.o billion on account of shortfall recorded in ordinary revenue. The ordinary revenue was Kshs. 2,420.2 billion against a target of Kshs. 2,496.2 billion, a shortfall of Kshs. 76.0 billion. The Ministerial AIA was above target by Kshs. 14.o billion during the period under review.Overall,totalrevenueinclusive oftheMinisterialAIAgrewby 8.2percent.

| Table2:Summary ofRevenuePerformanceinKshs.Millions | Table2:Summary ofRevenuePerformanceinKshs.Millions | Table2:Summary ofRevenuePerformanceinKshs.Millions | Table2:Summary ofRevenuePerformanceinKshs.Millions | Table2:Summary ofRevenuePerformanceinKshs.Millions | Table2:Summary ofRevenuePerformanceinKshs.Millions | |------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------| | S/No. | | 2024/2025 | 2024/2025 | 2023/2024 | % | | | | Target | Actual | Actual | Growth | | 1. | Total Revenue (a+b) | 2,702,662 | 2,923,551 | 2,702,662 | 8.2 | | | O/w Ordinary Revenue | 2,496,197 | 2,420,174 | 2,288,921 | 5.7 | | | AIA | 489,371 | 503,377 | 413,740 | 21.7 | | 2. | External Grants | 47,193 | 33,320 | 22,037 | 51.2 | | 3. | TotalRevenue&External Grants | 3,032,761 | 2,956,871 | 2,724,699 | 8.5 | | 4. | TotalRevenue&External Grant asa%ofGDP | 17.4 | 17.0 | 17.4 | | | Source:TheNationalTreasury(DraftBROP2025) | Source:TheNationalTreasury(DraftBROP2025) | Source:TheNationalTreasury(DraftBROP2025) | Source:TheNationalTreasury(DraftBROP2025) | Source:TheNationalTreasury(DraftBROP2025) | Source:TheNationalTreasury(DraftBROP2025) |

2.2OverviewofBudgetPerformanceacrossMDAs

RecurrentExpenditure

• 15.AnoverviewofExchequerissuesshowsthatthebudgetimplementationforFY2024/25 registered animpressiveresultwith uptakeofresources of over 98percent across all thevotes under thepurviewoftheCommitteeassummarizedinTable3.
• 16.In the FY 2024/25,the national government, through the National Treasury,prepared three supplementarybudgets thattheNationalAssemblyapproved.Analysisof financial andnonfinancialperformancesubmitted byMDAstotheOfficeoftheControllerofBudgetshowsthat some budget line items recorded negative balances, as buttressed by absorption above 1o0 per cent(Like thecase ofStateDepartment forImmigration andStateDepartmentfor Parliamentary Affairs). This is attributed tobudget cuts on line itemswith expenditure in theSupplementary Budgets. Negative balance on budget items indicates non-compliance with the basic accounting principles and prudentfinancialpractices.

17. To avoid overdrawing budget items, it is recommended that the National Treasury ensure that expenditure performance is updated and fully considered during Supplementary Budgeting consolidationbeforesubsequentsubmissiontotheNationalAssembly.

| Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | Table3:AnalysisofRecurrentExpenditurePerformance-(Kshs.Billions) | |--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------| | Vote | Gross Revised III | AIA (Gross- Net) | NetRevised III | Exchequer Issues | Exchequer as%ofNet Revised | Actual Expenditu re | Absorption | | 1011 | 4.57 | 0.02 | 4.55 | 4.55 | 100 | 4.54 | %8'66 | | 1012 | 3.22 | 0.00 | 3.22 | 3.22 | 100 | 3.06 | 95.0% | | 1013 | 0.89 | 0.00 | 0.89 | 0.88 | 99 | 0.88 | 98.9% | | 1014 | 0.32 | 0.00 | 0.32 | 0.32 | 100 | 0.32 | 100.5% | | 1015 | 0.63 | 0.00 | 0.63 | 0.63 | 100 | 0.61 | 96.8% | | 1016 | 0.22 | 0.00 | 0.22 | 0.22 | 100 | 0.22 | 100.0% | | 1017 | 11.67 | 0.01 | 11.66 | 11.64 | 100 | 11.64 | 99.7% | | 1024 | 13.12 | 3.97 | 9.15 | 9.14 | 100 | 13.16 | 100.3% | | 1025 | 116.06 | 0.04 | 116.02 | 115.30 | 99 | 115.32 | 99.4% | | 1026 | 36.94 | 0.13 | 36.81 | 36.81 | 100 | 36.65 | 99.2% | | 2101 | 1.01 | 0.00 | 1.01 | 1.00 | 66 | 1.00 | %0'66 | | 2151 | 1.10 | 0.00 | 1.10 | 1.09 | 66 | 1.09 | 99.1% | | Total | 189.75 | 4.17 | 185.58 | 184.80 | | 188.49 | 99.3% |

PARTII

3.0SUBMISSIONSBYMINISTRIES,DEPARTMENTSANDAGENCIES

18. The Ministry,Departments and Agencies (MDAs)made written submissions,which were considered and examined by thecommittee asfollows.The section below outlines a summary of the submissions by the Ministry, Departments and Agencies with respect to their budget implementation for theFY 2024/2025:

3.1 EXECUTIVE OFFICE OF THEPRESIDENT (EoP)

19. TheExecutive Office of thePresident(EOP)is mandated to provide overall policy direction and leadership in government.It carries out this role through four main programmes, twenty-one departments or units, and one semi-autonomous agency—the National Lottery Board. The programmes include: General Administration, Planning and Support Services; Government AdvisoryServices;Government Printing Services;and Leadershipand Coordinationof GovernmentServices.

BudgetPerformance

20. During the 2024/2025,financial year, the Office operated with a total approved budget of KSh 4.621 billion,comprising KSh 4.571 billion for recurrent expenditure and KSh 50 million for development activities. By 30th June 2025, total expenditure stood at KSh 4.52 billion, representinganoverall absorptionrateof97.81percent.Recurrent expenditurerecorded ahigh absorptionrate of98.32percent,while developmentexpenditure achieved51.41percent. 2. 21.At the programmelevel, General Administration andPlanning Services utilizedKSh 1.91 billion Printing Services spent KSh 804 million out of KSh 818 million, attaining 98.36 percent absorption.GovernmentAdvisoryServicesdisbursedKSh1.o7billionfrom an allocationofKSh 1.11 billion, with an absorption rate of 96.26 percent, while Leadership and Coordination Services recorded 97.01 percent utilization. These figures indicate efficient budget absorption, especially on therecurrentside,despite someunderfundingof capitalprojects.

ProjectImplementation

22. Five major capital projects were earmarked for implementation during the year. These included themodernization ofthe GovernmentPress and refurbishment ofitsbuildings;refurbishment of HarambeeHouseMain;operationalizationof theDirectorateof ResourceSurveys andRemote Sensing; capital transfer to the National Fund for the Disabled of Kenya; and the Kenya-EU Partnershipon theNationalStrategy toCounter Terrorism. 2. 23.However,government funding for most of these projectswas rationalized duringSupplementary I due to fiscal constraints arising from the 2024 Finance Bill. Consequently, only the counterterrorism partnership project received partial donor funding of KSh50 million from the

European Development Fund. By the end ofthe period, overall project completion stood at 19.93 percent. The refurbishment of Harambee House had reached 35.1 percent, the National Fund for the Disabled 68.2 percent, Resource Surveys and Remote Sensing 20.8 percent, modernization of the Government Press 7.85percent,and the donor-funded counterterrorism project 3.69 percent.All projectswerebased inNairobi.

Non-FinancialPerformance

• 24.The EOP recorded several key achievements in policy implementation and service delivery. It issued 570 presidential directives and introduced thePresidential Directives Management Information System(PDMIS)to track and evaluate execution of these directives.The Office coordinated theconstructionof1o6kilometresofboundarypillarsalongtheKenya-Tanzania border and developed a governance and integrity-training curriculum for public service officers. It also released a report on maize production estimates for 2024/25,issued 11 advisories on commercialization of ocean and blue economy resources, developed a framework for deep-sea mining,and operationalized the National Lottery Board.Additionally,it rolled out the Foreign Travel Information Management System (FOTIMS) to streamline government travel processes and coordinated agovernment-wide complianceinitiativeunder the"ZeroFaultAudit" programme.

PendingBillsandLiabilities

• 25.The Office carried forward historical pendingbills amounting toKSh 146.29million,which remained unsettled due to inadequate budgetary provision. There were no court awards or contingentliabilitiesreportedduringtheperiod.

PerformanceoftheSAGAs

26. The National Lottery Board (NLB), the sole semi-autonomous agency under the Office, received a budget allocation of KSh 120million and utilized KSh 114.64 million, translating to an absorption rate of 95.54 percent. The expenditure mainly supported the operationalization of the Board,including office setup,acquisition of vehicles and equipment, and development of institutionalframeworkssuch ashumanresourceinstruments andastrategicplan.

RevenuePerformance

• 27.During theyear,the Office had an Appropriations-in-Aid(AIA)target of KSh 25 million,derived KSh18.85millionwasrealized.

3.2OFFICEOFTHEDEPUTYPRESIDENT

• 28.The Office of theDeputyPresidenthad a budgetary allocation of KSh.3,218.6million for recurrent expenditure.TheDevelopmentexpenditure wasrationalized during supplementaryI on accountoflack of financing.Thetotal actual expenditure as at the end of theyear amounted

• toKSh.3,217.2 million representing an absorption of 99.96 percent.
• 29.The budgetary allocation for the Office of the Deputy President of KSh.3,218.6 million was spread across three sub-programmes. The sub-program of General administration and Support Service was allocated KSh. 593.9 million while the sub-program of Coordination and Supervision was allocated KSh. 2,576.7 million. The sub-program of Government strategic Priorities and InterventionswasallocatedKSh.4million.TheOfficeutilizedKSh.593.9million,KSh.2,575.3 million andKSh.48millionfor thethree sub-programs respectively culminatingintoan absorptionof99.9percent.

Reviewofnon-financialperformance:-

• i. Chaired Cabinet Committees&High-Levelengagement;
• ii. FosteredcooperationandconsultationbetweentheNationalandcountyGovernmentsby convening four(4)intergovemental Budget and Economic Council For a and 11 technical meetings. The outcomes of these engagements included Approval of the County Government ShareablerevenuebycountiesforFY2024/2025;Resolutionof theworkingstalematebetween the Office of the Controller of Budget and County Governments; and fastracking the performance among other issues affecting County Governments requiring National Government cooperation;
• iii. Ineffortstostrengthendevelopmentpartnershipseffectivenessandfastracktheimplementation of the 12thHighLevel development Partnerships Forum resolutions,the Office constituted a taskforce to undertake an in-depth portfolio review ofexternally funded projects and programmes acrossGovernment.TheTaskforceanalyzed issuesaffectingKenya'sabsorptioncapacityof projects, and fragmentation between government institutions in implantation of partners funded programs, integration of Off Budget into country systems and visibility of development partner's cooperation atcountylevel.TherecommendationsoftheTaskforce await tobepresentedto the Cabinet for guidance;
• iv. The Office of the Deputy President coordinated the vetting of nominees for National Honors and Awards and submitted a recommendation report to H.E. the President. The ODP further enhancedcapacityofMDAstoreviewnominationsfromtheirrespectiveinstitutions.

5. The Office coordinated the implementation of Coffee subsector reforms by convening six (6) consultative engagements with actors in the Coffee value chain to sustain the gains attained in the implementationoftargetedinterventions andresolve administrative andregulatoryissues aimed 6. Vi. The Office alsocoordinated government efforts on eradication of illicit alcohol,drugs and substance abuseby spearheading thedevelopmentoftheAlcoholicDrinks andDrug Control Laws (Amendment) Bill, 2024 in collaboration with relevant stakeholders which was approved by the Cabinet, in addition to strengthening enforcement and compliance through administrative frameworks.

• vii. Facilitated H.E.theDeputyPresident engagements towards spearheading various strategic interventionsandfastrackingtheimplementationof GovernmentPolicies,programs andprojects across thecountry.

PendingBillsandCarryOvers

• 30.ThePendingBillsfor theOffice as at3othJune 2025 amounted toKSh.440.3millionresulting from thelack ofbudget provision,specifically on thebudgetitems of hire of transport,hospitality andmotorvehiclemaintenance.There also existhistoricalpendingBills ofKSh.1,4oomillion whichwereforwardedto theNational Treasuryforconsideration and areyettobeverified by the pendingBillsVerification Committee.

Appropriations in Aid

• 31.The Office generated KSh.3.3million which was used to defray the expenditures of the Office in line with the Supplementary Appropriations Act No. of 2025

3.3OFFICEOFTHEPRIMECABINETSECRETARY

ApprovedEstimates

• 32.TheinitialPrintedEstimatesforFY2024/25,allocationfortheOfficeofthePrimeCabinet Secretary amounted toKshs.1,140.79 million for Recurrent Budget comprising of Kshs.232 million for compensation of employees, Kshs. 761.14 million for use of Goods and Services and Kshs. 147.65 million.The Supplementary HI budget estimates for FY 2024/25 for Development Budget amounted to Kshs.65 million.

33. During the Finalization of the FY 2024/2025 Supplementary Estimates No. II, the OPCS approved estimates were reviewed downwards fromKshs.1,140.79 million toKshs.893.15 million for Recurrent Budget comprising ofKshs. 203.44 million for compensation ofemployees, Kshs.645.21 million for use of Goods and Services and Kshs.44.51 million for Acquisition of Non- Financial assets FY 2024/2025, Supplementary No. Estimates IHI for Development Budget wasKshs.65million. 34. The OPCS Approved Estimates as at 3oth June 2025 amounted to Kshs. 893.15 million for Recurrent Budget comprising of Kshs. 203.44 million for compensation of employees, Kshs. 645.21millionforuse of Goods andServices andKshs.44.51millionforotherrecurrent expenditure.

• 35.TheOPCSabsorption as at30thJune 2025was99.28%under the recurrent budget.The absorption on Compensation toEmployees,Use of Goods and Services,and Acquisition of NonFinancial Assets stood at 99.82%, 99.06% and 99.96% respectively.
• 36.TheFY2024/2025ApprovedEstimatesforthedevelopmentbudgetwasKshs.65million against its cumulative expenditure as at 30th June,2025 of Kshs.44.87 million representing 69.02% absorption.This gives an 0verall Budget absorption for Vote 1013 for FY 2024/25 AS 97.14%.

37. The OPCS overall absorption for Government Coordination and SupervisionProgramme was 97.14%.Theofficeabsorbed98.88%and96.03%of theapprovedFY2024/25allocationsunder

theAdministration andSupport Services and the Coordination andSupervision services subprogrammesrespectively.

ReviewofNon-FinancialPerformance

• i. Developed guidelines for coordination and Supervision of national Government operations inlinewithExecutiveOrderNo.2of2023.
• ii. Developed theNational GovernmentMonitoring andEvaluationframeworkfor tracking of the implementation of the 51 high impact BETA priority projects.
• iii. The PCS chaired and facilitated NDIC meetings during which forty-three projects implementationissueswereresolved.Key amongst themincludedresolutions tothe constructionof Mandera water Supply,LotI construction; construction of east Africa's Kidney Institute complex at Kenyatta national Hospital, Ronald Ngala Utali College and SonySugar Company Ltd among others.
• iv. Through the GDS, the Office verified 241 projects across the 8 regions and harmonized and updated 1,970 projects on the GPRS system.
• V. ToimprovepublicServiceperformance and deliveryof services to the Citizens,eth OPCS evaluated four hundred and Fifty(45o) MDAs on Performance contracts guidelines for FY 2023/2024
• vi. The OPCS refurbished, modernized and equipped the Kenya Railways Block to House the Prime CabinetSecretary andStaffunder OPCS

3.4STATEDEPARTMENTFORPARLIAMENTARYAFFAIRS

• 38.TheStateDepartmentfor Parliamentary Affairs,established under Executive Order No.2 of 2023,ismandated tocoordinatetheNational Government'slegislativeagenda,overseepolicy development processes across Ministries, Departments and Agencies (MDAs), and facilitate liaisonbetween theExecutive and Parliament.For the FY 2024/25,theDepartment operated under three programmes: Parliamentary Liaison and Legislative Affairs; Policy Coordination and Strategy; and General Administration,Planning and Support Services.

Budget allocationandExpenditurePerformance

• 39.The approved budgetfor theStateDepartment inFY 2024/25,as reflected inSupplementary II, amountedtoKsh.322.92million,allundertherecurrentvote.ProgrammeonParliamentary Liaison and Legislative Affairs was allocated Ksh.79.44 million,Programme on Policy Coordination and Strategy received Ksh.81.i7 million, while Programme on General Administration, Planning and Support Services had an allocation of Ksh. 162.31 million.
• 40.By the close of the financial year,total expenditure stood at Ksh.323.76 million,resulting in a slight over-expenditure of Ksh.O.84 million,attributed tobudget rationalization under Supplementary II1. This translated into an absorption rate of 1o0.26%.

ReviewofNon-FinancialPerformance

42. The Department's programme outputs were assessed against annual targets. Several targets were met,while a number faced challenges.Key issues are summarized below:

ParliamentaryLiaisonandLegislativeAffairs

1. arosebecausetheframeworkwasstill awaiting publication and launch.

• ii. TheDepartmentintendedtoprepareoneParliamentaryLiaisonFrameworkimplementation report, but none was completed during the year,with completion deferred to the next financial year.
• ili. Capacity-building for MDAs onParliamentary Liaisonwas not undertaken.The targethad been setat52officers,butnoofficersweretrained.
• iv. Meetings of the Steering Committee on Government Legislative Agenda (SCGLA) and Parliamentary Liaison were not held. The target was two meetings, all of which were rescheduled to the next financialyear.

5. Under the LATIS system, capacity building for 52 MDAs officers on the Bills Module was not achieved, as the system was yet to be fully rolled out. 6. Vi. However, several targets were achieved,including preparation of two status reports on parliamentary resolutions and executive undertakings, four reports on government business to Cabinet, and two advisory briefs, including those on femicide and youth bulge.

Legislative and Legal Affairs

• The Department fully achieved targets relating to guidelines for development of national government legislation, capacity building of 52 officers on the Government Legislative Agenda (GLA), completion of legislative alignment to GLA, and the holding of one round-table forum on GLA.
• ii. The LATIS Bills module surpassed expectations,recording 9o%completion against a target of 80%.
• ili. Piloting of themodule insixMDAswas completed as planned.
• iv. However,theDepartment did not conduct capacity building for52 officers on the Bills Module as earlier planned, due to the system not being fully rolled out.

PolicyCoordination andStrategy

• i. The Public Policy Handbook for Kenya was fully completed as targeted, and all proposed draft policiessubmittedbyMDAswerereviewed.
• ii. the Department trained 36 officers, exceeding the target by 21 officers.
• ii. All scheduled Public Policy Handbook implementation reports were delivered.
• iv. Policy analysis and advisory targets were also met; the Department prepared one policy analysis report and two advisory reports, including on femicide and youth bulge.

• V. The Policy Module of LATIS reached 7o% completion against a planned 8o%, reflecting a shortfall of 10% due to ongoing piloting.

GeneralAdministration,PlanningandSupportServices

• i. All administrative support services were fully implemented at 1o0%.
• ii. Recruitment andinductionof4ostaffmemberswascompleted asplanned.
• ii. Planning and Monitoringfunctions achieved all scheduled outputs,includingpreparation offour quarterlyM&Ereports.

3.5STATEHOUSE

BudgetandExpenditurePerformance

• 43.TheStateHouserevisedprinted estimatesfor theFY2024/2025wasKSh 12,065.8million comprising of KSh.11,665.8 million for Recurrent Expenditure and KSh.400 million for DevelopmentExpenditure.
• 44.The total actual expenditure amounted toKSh.12,038.1 million comprising of KSh.11,643.7 millionforRecurrentexpenditureandKSh.394.5million forDevelopment expenditure

Non-FinancialPerformance

• i. StatehousefacilitatedthePresidenttoexecutehisConstitutionalmandatewhereall operations, activities and programs were facilitated.
• ii. Facilitated theMashujaa,Jamhuri andMadaraka national daypresidential luncheons
• iii. It alsofacilitated operations and activities in otherStateHouses inMombasa andNakuru and all the state Lodges.
• iv. ThePresidentialCommunicationServicedevelopedandaireddocumentarieson government priorities and strategic interventions in line with BETA priorities.
• V. The Policy Analysis and Research Unit provided policy priorities and strategic support on BETApriorityareas.
• vi. The General maintenance works were carried out with 1oo % completion rate ofthe targeted works as per the Approved Work Plan at thebeginning of theFiscal year.
• vii. The Administration of Statutory Benefits to retired Presidents/Vice presidents was implemented fully as per the Statutory Benefits Acts and the Act providing similar packages fortoRetireddesignatedStateOfficers

3.6STATEDEPARTMENT FORIMMIGRATIONANDCITIZENSERVICES

BudgetaryAllocationandExpenditurePerformance

45. The total budgetary allocation for the State Department amounted to KSh. 20,220 million comprisingofKSh.13,121.6millionforRecurrentandKSh.7,099millionforDevelopment Expenditure.The actual cumulative expenditure amounted toKSh.20,168.3 million comprising ofKSh.13,078.7millionforRecurrentandKSh.7,089.6millionfor development.

ReviewofNon-FinancialPerformance

• Immigration Services:Issued 514,152 e-Passports, 17,429 work permits, and 1,500,251 Electronic Travel Authorizations (ETAs). Over 7 million citizens and foreigners cleared at entry points. One immigration office operationalized in Garissa, and 92,371 refugees registered.
• ii. National Registration Bureau: Issued 2,176,309 Maisha cards (3rd generation). Operationalized 62National Registration Centres.
• Civil Registration Services:Issued 1,311,231(79%) birth certificates and 171,424 (80%) death certificates.The KenyaVital Statistics Report (KVSR 2024)was developed and disseminated. Twenty-five Civil Registries were operationalized and 1,797,155 birth and death records were digitized.
• iv. E-Citizen Services: On boarded 21,609 Government services onto the e-Citizen platform.
• Integrated Population Registration Services: Connected 48 Government agencies to the Maisha Integrated Database.

RevenuesandAppropriationsinAid

46. Total revenue collected through services amounted to Kshs 15,089.07 million, with Kshs 9,377.59 million retained to defray expenditures as AIA (Kshs 5,057.08 million for development and Kshs 4,320.51 million for recurrent expenditure). 47. The following were the main Revenue streams for the State Department: - 3. iBirths &Deaths:Kshs 398,170,063 4. i.Immigration e-Visa/Consular Fees:Kshs 4,845,918,628 5. ili.Passport Fees:Kshs 2,983,301,400

• iv. WorkPermitFees:Kshs2,597,787,455
• V. Other Immigration Fees: Kshs 2,397,866,074

8. Vi. Identity Cards:Kshs 597,428,000

• vii. Verification Fees:Kshs 318,158,257

10. vili.Prior Year Receivables: Kshs 950,439,837

PendingBillsand Carry-overs

• 48.As of June 30,2024,the State Department had Kshs 6,289,984,036 in pending bills and carryovers.Kshs 5,892,988,505 were pending bills not budgeted for but paid during FY 2024/2025. Kshs 396,995,838are carry-oversfrom previousyears.Allbills are undergoingverification,which is expected to negatively affect operations in FY 2025/2026.

3.7NATIONALPOLICESERVICE

BudgetandExpenditurePerformance

• 49.In FY 2024/2025,theNPS received a total allocation ofKShs.116.64 billion,comprisingKShs. 116.06billionfor recurrent expenditure andKShs.585millionfor development.TheService recorded total expenditures of KShs. 115.9 billion, representing an impressive 99.36% absorption rate. Exchequer issues totalled KShs. 115.88 billion, leaving a minor funding gap of KShs.25 million.
• 50.Most expenditure went toward personnel emoluments at KSh. 89,058.9 million,followed by Insurance at KSh. 8,546 million, Security Operations at KSh. 8,132 million and Specialised Materials atKSh.3,963.9million.

ProjectImplementation

Development spending, though modest, was directed toward modernization and facility upgrades. Despite delayed disbursements and underfunding in certain areas, the Service achieved effective utilizationofavailableresources.

• 51.Duringthefinancialyear,theNational Assemblyfunded sixprojects amountingtoKShs.585 million. Two projects were completed, while three remained ongoing. Completed projects included therenovation of Molo and ElburgonPolice Stations and therepair of the drainage system at the Service Central Stores in Kamulu. Ongoing projects include the Police Modernization Programme, the upgrade of the Automated Fingerprint Identification System (APFIS), and system maintenance at the Directorate of Criminal Investigations.

52. The Service also reported 15 stalled projects across the country valued at KShs. 3.8 billion. These projects—mainly police housing and administrative infrastructure in Marsabit, Baringo, Siaya, Nyeri, Murang'a, and Nairobistalled due to inadequate budget provisions. About KShs. 2.49 billion had been spent by June 2025, leaving an outstanding balance of KShs. 1.31 billion.

Non-FinancialPerformance

• 53.Despiteresource constraints,theService delivered significant results.It provided1oo%security coverage forVIPs,airports,and border points;issued 815,551Police Clearance Certificates; investigated 46,291 criminal cases; and trained 5,745 officers in various courses.Community policing was implemented in 34% of police stations, and coordination across units improved notably.
• 54.However,modernizationeffortswere affected bybudget cuts.Only three ofelevenpolice aircraft were operational, reducing aerial surveillance capacity. Limitations in vehicle repairs, communication equipment, and forensic modernization further impacted efficiency. Nevertheless, theService upheld law and order and enhanced inter-agency coordination nationwide.

PendingBillsand Court Awards

• 55.As at 30th June 2025, total pending bills stood at KShs. 10.9 billion, comprising KShs. 2.5 billion in historical obligations,KShs. 7.28 billion recurrent, and KShs.1.11 billion development bills.To address this,the NPS has established Pending Bills Verification Committees and prioritizes settlementofverifiedclaimsbeforenewcommitments.
• 56.TheService alsofaced sixcourtcaseswith contingentliabilitiestotalingKShs.1.78billion, someofwhichhavealreadybeenruledagainsttheService.

RevenuePerformance

57. The NPS generated KShs. 1.7 billion in revenue against a target of KShs. 2.57 billion, achieving 66%performance.TheshortfallresultedmainlyfromareductioninrevenuefromCertificatesof Good Conduct, following conversion of KShs. 5oo million to 2. 58.Appropriations-in-Aid (AIA)-Revenues from hire of security services slightly exceeded projections, while miscellaneous income fell below expectations. A total of KShs. 592 million was realized asAIA,slightly abovetheKShs.534million targets.

Challenges

59. The Service faced persistent funding gaps for essential operations, including:

• i. Security operations and logistical support across the country.
• ili. Payment ofutilitybillsforwater and electricity.
• ii. Medical insurance and staffwelfareprogrammes.
• iv. Maintenance ofaircraft and specialized equipment.

6. Completion of the NPS Level 4 Hospital, which has an outstanding bill of KShs. 833 V million. 7. 60.These constraints slowed the pace of modernization and affected operational readiness in several formations.

3.8 STATE ADMINISTRATION

BudgetPerformance

• 61.As of SupplementaryII1, the Department's final approved budget stood at KShs.39.81 billion, consisting ofKShs.36.94billionforrecurrent andKShs.2.87billionfordevelopment expenditures. The total expenditure amounted to KShs. 39.81 billion, reflecting an exceptional 99.99%absorptionrate.
• 62.Mostofthefundswere spentunder thethreekeyprogrammes:

• i.General Administration and Support Services, which accounted for the largest share and included coordination of national government programmes and disaster management.
• i.Policy Coordination Services, which focused on policy formulation and national campaigns against drug abuse.
• ili. National GovernmentFieldAdministrationServices,whichensured coordination and securityatthegrassrootslevel.

ProjectImplementation

63. During the reporting period, the Department implemented various projects under its developmentvote.It undertook thesecond phaseoftheNational PoliceModernizationProject, constructednineteenNationalGovernmentAdministrationoffices,builtonepolicestation, and completed two security roads. It also refurbished two sub-county offices and Harambee House. 64. The Miritini Rehabilitation Centre project, under Policy Coordination Services, experienced delays following budget cuts during the first supplementary budget. Overall, the Department made significant progress in strengthening administrative infrastructure and security facilities across the country, although some projects were affected by funding constraints.

Non-FinancialPerformance

• 65.TheDepartmentimplementedseveralprogrammes aimedatenhancinggovernance, peacebuilding,and national cohesion.Despite some unmet targets due to resourcelimitations,it successfully coordinated nationalgovernment functions and maintained stability across all administrative levels. A detailed compendium of programme outputs, performance indicators, and explanations for unmet targetshasbeen annexed to this report.

PendingBillsandCarry-Overs

66. By 30th June 2025, the Department's total pending bills amounted to KShs. 14.56 billion. This comprised KShs. 12.69 billion in historical bills and KShs.1.87 billion in carry-overs. The majority of the bills were recurrent,with the remainder under the development vote. 2. 67.TheDepartment hadinitiated measures to settle these obligations,making them a first charge in theFY2025/2026budget.Historicalbillswere alsosubmittedtothePendingBillsVerification Committee attheNational Treasuryforvalidation.However,thehighlevel of pending bills was expected tonegativelyaffecttheimplementationof newactivitiesinthefollowingfinancialyear.

CourtAwardsandContingentLiabilities

68. At the close of the financial year, the Department faced pending legal claims amounting to KShs.1.1 billion,most of whichwere historical in nature.These liabilities posed potential fiscal risks and continued to exert pressure on the Department's limited resources.

PerformanceofSAGAs

• 69.The State Department oversaw several Semi-Autonomous Government Agencies(SAGAs), includingtheFirearmsLicensing gBoard,PrivateSecurityRegulatoryAuthority,National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA), Public Benefits Organizations Authority, National Crime Research Centre, and National Cohesion and Integration Commission.

70. Collectively, the SAGAs had an approved budget of KShs. 2.3 billion and achieved a 1o0% absorptionrate,demonstratingefficientutilizationoffunds acrossallagencies.Theperformance reflected strongcoordination and accountabilitywithin theDepartment'sinstitutions.

RevenueGeneration

71. During FY 2024/2025, the Department generated a total of KShs. 128.88 million in revenue, which was fully retained as Appropriations-in-Aid (AIA) to support operational costs. The main sources ofrevenuewere thePublicBenefitsOrganizationsAuthority(PBORA),Government Chemist,and KenyaSchool ofAdventure and Leadership(KESAL).All collected revenue was utilized to supplement expenditureswithin the respective entities.

Challenges

72. The Department faced persistent financial constraints in critical areas such as legal dues, presidential visits, national celebrations, electricity, and security operations. Funding shortfalls in these areas led to an accumulation of pending bills.For instance,funds for legal while budget allocationsfor national celebrations and utilities remained insufficient. 73. These funding gaps constrained service delivery and delayed settlement of obligations. The Department emphasized theneed for enhancedbudgetary allocation to these critical items in subsequent financial years.

3.9NATIONALPOLICESERVICECOMMISSION(NPSC)

Budget and ExpenditurePerformance

• 74.The Commission's total approved RevisedEstimates and Printed Estimates budget for FY 2024/2025stood atKshs.1,007.1 million andKshs.1,131.3millionrespectively,with Cumulative Expenditures amounting toKshs.999.9 millionreflecting an absorption rate of99.3%.
• 75.Compensation to employeeswas revised toKshs.67o.5million of whichKshs.665 million was spent indicating 99.19%.Use of goods and services was revised toKshs.309.5 million withKshs. 307.9 million utilized representing an absorption of 99.53%. Other recurrent expenses,including refurbishment and asset acquisition, were revised to Kshs. 27.2 million with Kshs. 27.1 million spent,representing an absorption of99.23%.

Non-FinancialPerformance

76. In terms of non-financial performance, recruitment targets including 5,ooo police officers and 1,40omarginalized individuals were notmet due tobudget constraints,thoughpromotions exceeded targets with 4,226 processed against a target of 3,450. Disciplinary and appeal adjudicationsachieved1oo%resolutionrates.

Pending Bills and Carry - Overs

77. The Commission had no pending bills/carry overs. However, it faces liabilities totalling Kshs. 47,657,434.29 from 14 court awards,with onlyKshs.367,990paid to date.No Appropriations-inAid (AIA) were generated, and no Semi-Autonomous Government Agencies (SAGAs) fall under its purview. 2. 78.Critically underfunded areas include automation (Kshs. 68O million deficit), decentralization of HR and counselling services (Kshs.154 million),implementation of Maraga Taskforce recommendations (Kshs. 41 million), annual recruitment (Kshs. 379 million), staff mortgage scheme (Kshs. 95 million), and vehicle leasing (Kshs. 85 million). The total funding gap amounts to Kshs. 1434 million against a requirement of Kshs. 1867 million.

3.10INDEPENDENTPOLICINGOVERSIGHTAUTHORITY

• 79.The printed estimates for IPOA for the FY 24/25wereKsh.1,108million,which was revised to Ksh 1,102 million in the supplementary II Estimates. The exchequer receipts to IPOA amounted to KSh.1,102 million.

80. The total expenditure during the period amounted to KSh. 1,093.6 million and only KSh. 8.03 million was not utilized mainly due to delay in recruitment of replacement officers and closure of the IFMIS e-procurement module. 81. During the FY 2024/2025, the Authority received and processed 4,495, an increase in the number 82. The Authority targeted 711 investigations but fell short by nine (9) on account of insufficient budgetary allocation.Further, the authority submitted 171files to the ODPPfor action while as at the end ofthe FY, 262 and 55 criminal and civil cases respectively were before the courts. IPOA has since managed forty (4o) convictions since its inception.

PARTIV

4.0EMERGINGCONCERNS/COMMITTEEOBSERVATIONS

• 83.TheCommitteehavingreviewedtheBudgetPerformancefor theFY2024/2025observed the following:
• 1.HighAbsorption rates-Generally, there is high absorption of funds by thevarious MDAs under thepurviewof the Committee.All MDAs registered absorptionof close to98percent.Suchhigh absorptionshouldhowevertranslatetoincreaseinservicedelivery.Areviewoftargetssetatthe including the National Police Service Commission, the Office of the Deputy President and the StateDepartmentforImmigration&CitizenService amongothers.

2. Stalledprojects/LimitedFundsforDevelopmentProjects-Generally,thearelimitedfunds for development spending given the amount that was appropriated for such projects against the resource requirements was substantially low,a situation that was further exacerbated by rejection of FinanceBill 2024.TheNational PoliceService for instance receivedfunding for only six projects amounting toKshs.585million tocomplete only two(2) projectswhile three(3)were still ongoing.Due to limited funding,the service has15 stalled projects.Going forward, there is a need to fast-track the completion of the ongoing and stalled projects before introducing new ones.

• 3.PendingBills-thependingbills continue topose achallenge tobudgetimplementation and to some extent overall economic growth of the country.As at 3oth June 2025,pending bills for the National Government MDAs amounted to Kshs.524.84 billion,compared toKshs.516.27 billion reported as of 30 June 2024.The pending Bills were made up of Kshs.274.34 billion (52 per cent) forRecurrentVotesandKshs.250.50billion(48percent)forDevelopmentVotes.

Of the pending bills, Kshs.404.33 billion (77 per cent) is owing from State Corporations and Kshs.120.51 billion (23 per cent) from MDAs. The MDAs' pending bills, mainly historical bills, comprised ofKshs.81.06 billion (67per cent)for recurrent expenditure andKshs.39.46billion(33 per cent) for development expenditure. The major MDAs under the purview of the Committee with pendingBills included the StateDepartmentforInternal Security-KSh.14,560 million, National Police Service- Kshs. 13,368.8 million, the State Department for Immigration and Citizen Services-KSh.6,289 million,Executive Office of thePresident-Kshs.3,388.8 million, and Office ofthe Deputy President-Kshs.1,794 million.

• government, through the National Treasury, prepared three supplementary budgets that the National Assembly approved.Analysis of financial and non-financial performance submitted by MDAs to the Office ofthe Controller of Budget shows that some budget line itemsrecorded negative balances,as buttressed by absorption above 1ooper cent.(Thiswas the case with the stateDepartmentforImmigration&CitizenServicesaswell astheStateDepartmentfor ParliamentaryAffairs)This is attributed to budget cuts on line items with expenditure in the

basic accountingprinciples and prudent financial practices.To avoid overdrawing budget items, the Controller of Budget recommends that the National Treasury ensure that expenditure performance is updated and fully considered during Supplementary Budgeting/rationalisation and approval bytheNationalAssembly.

• 5.1 Budgeting for Results -Analysis of financial and non-financial reports submitted to the Controller ofBudget by MDAs shows a mismatch between financial and non-financial parameters. Notably,there are circumstances where MDAs recorded an absorption rate of1ooper cent ofthe budgetand,ontheotherhand,recordedalowachievementof thekeyperformance indicators/targets.This makes it hard to relate the critical performance indicators and output as budgeted intheProgrammeBasedBudget and totrackimplementationof theGovernment Agenda.This may be due tofailure to stick to the work plans and implement activities outside the budget
• 6.Despite having approved the budget for FY 2024/2025, the estimates were revised three times in the course of budget implementationwith thelastrevision having been done less than oneweek tothe end of thefinancialyear.Suchfrequentrevisionof thebudgetdents the credibility ofthe thefinancial year makes such expenditures not to berealised.

5.0COMMITTEERECOMMENDATIONS

84. The Committee having reviewed the Budget Performance for the Financial Year 2024/2025 recommends:

• a. THAT,all Accounting Officers for MDAsunder thepurview of the Committee to submit QuarterlyPerformancereportsthatexplicitlylinkfinancialabsorptionto achievementof set targets and further align Exchequer Releases toPerformance outcomes.Thisreport should be submitted to theCommitteenot later than30days after theend ofeveryquarter.
• b. THAT, all Accounting Officers for MDAs under the purview of the Committee to prepare a comprehensive project completion plan listing all ongoing and stalled projects, their funding gaps, expected completion dates, and implementation status and ensure that all ongoing and stalled projects are prioritised for resource allocation before introducing any new project in the FY 2025/2026.

4. THAT, All MDAs to enforce a clear and time bound Pending Bills clearance strategy and ensure thatverifiedhistoricalpendingbills arereduced by20%by3othJune2026 and the current-year eligiblepending bills are cleared by10oper centwithin 90 days of invoice processing starting January 2026.

• dl. Treasury to submit alongside supplementary Budget, expenditure data that is current at the point of revising the budget, and ensure zero negative balances on budget line items for all MDAs.

6. THAT, to enforce results-based Budgeting and adherence to work Plans, all MDAs to align their Annual Work Plans strictlywith the Approved Program-Based Budget(PBB) outputs and key performance indicators, and future reporting to the National Assembly on Budget performancebestrictlyin conformity to the approvedPBB. 7. THAT, the National Treasury implements the National Assembly resolution of limiting supplementarybudgetsubmissionstoamaximum of twoperfinancialyearexceptincasesof supplementarybudgets aresubmitted nolaterthan31Marchwhile enforcing acut-offatleast 60daysbefore the endofthefinancialyear toprevent last-minute revisionsand enhance implementationfeasibility.

TONAL.ASSENBLY

SIGNED

DATE

HON:GABRIELTONGOYO,CBS,MP CHAIRPERSON DEPARTMENTALCOMMITTEEONADMINISTRATIONANDINTERNALSECURITY

PARTV

MINUTESOFTHE95THSITTINGOFTHEDEPARTMENTAL,COMMITEEEON NOVEMBER,2025IN THE COMMITTEE ROOM22,5THFLOOR,BUNGE TOWERS AT 10:00 AM.

PRESENT

1. Hon. Col (Rtd) Dido Rasso, MBS, MP

• Vice Chairperson

2. Hon. Sarah Paulata Korere, MP 3. Hon. Fred C. Kapondi , MP 4. Hon.Protus Ewesit Akujah, MP 5. Hon. Oku Kaunya, MP 6. Hon.Aduma Owuor,MP 7. Hon. Rozah Akinyi Buyu, MP 8. Hon. Amb. Francis Kipyegon Sigei, EBS, MP 8. 9.1 Hon.Hussein Weytan Mohammed, MP

ABSENTWITHAPOLOGY

• 1.Hon.GabrielKoshal Tongoyo,CBS,MP

2. Hon.Kaluma George Peter, CBS, MP 3. Hon.Dr.PeterFrancis Masara,MP 4. Hon. Caroline Jeptoo Ng'elechei, MP 5. Hon. Mburu Kahangara, MP 6. Hon. Liza Chepkorir Chelule, MP

IN-ATTENDACE

COMMITTEESECRETARIAT

• 1.Mr.John Mugoma

-Clerk Assistant I

2. Ms.Grace Wahu

-Clerk AssistantII

3. Mr.Gideon Kipkoech

-ClerkAssistant II

• 4.

• Ms.JudithKanyoko

• Legal Counsel

5. Ms.Edison Odhiambo

-Fiscal AnalystI

6. Ms. Delvin Onyancha

-Research Officer HI

• 7.

• Ms.Ivy Maritim

-MediaRelationOfficerIII

8. Mr. Rodgers Kilungya

• Audio Officer

• 9.Mr. Benson Kimanzi

• Serjeant-At-Arms

AGENDA

• 1.Prayers

2. Preliminaries and adoption of the agenda 3. Confirmation of Minutes of previous Sittings 4. Consideration and adoption of the report on the Budget Implementation for the FY2024/2025. 5. Any Other Business

• 6.Adjournment.
• Chairperson

MIN./NO./DC-AIS/2025/471:PRELIMINARIES&ADOPTIONOFAGENDA

The Vice Chairperson, Hon. Col (Rtd) Dido Rasso, MBS, MP called the meeting to order at 10.27 am and said a prayer. The agenda of the meeting was adopted having been proposed by Hon. Sarah Paulata Korere, MP and seconded by Hon. Amb. Francis Kipyegon Sigei, EBS, MP.

MIN./NO./DC-AIS/2025/472:CONFIRMATIONOFMINUTESOFTHEPREVIOUS SITTINGS

The confirmation ofminuteswasdiffered toalater date

MIN./NO./DC-AIS/2025/473:CONSIDERATIONANDADOPTIONOFTHE REPORTONBUDGETIMPLEMENTATIONFOR THEFINANCIALYEAR2024/2025.

The Committee considered and adopted the report on Budget Implementation for the financial year2024/2025andmadethefollowingobservationsandrecommendationshaving been proposed by the Hon.Aduma Owuor, MP and seconded by the Hon.Protus Akujah, MP: -

A.EMERGINGCONCERNS/COMMITTEEOBSERVATIONS

The Committee having reviewed the Budget performance for the financial year 2024/2025 observed the following:

• 1.High Absorption rates- Generally,there is high absorption of funds by the various MDAs under the purview of the Committee.All MDAsregistered absorption of close to 98 percent. Such high absorption should however translate to increase in service delivery. A review of targets set at the beginning of thefinancialyear shows some MDAs did not meet their targets as envisaged including the National Police Service Commission, the Office of the Deputy President and the State Department for Immigration & Citizen Service amongothers.
• 2. Stalled projects/Limited FundsforDevelopmentProjects-Generally,the arelimited funds for development spending given the amount that was appropriated for such projects against the resource requirements was substantially low, a situation that was further exacerbated by rejection of Finance Bill 2024. The National Police Service for instance received funding for only six projects amounting to Kshs. 585 million to complete only two (2) projects while three (3) were still ongoing. Due to limited funding, the service has 15 stalled projects. Going forward, there is a need to fast-track the completion of the ongoingandstalledprojectsbeforeintroducingnewones.
• 3.PendingBills-thependingbills continue topose a challenge tobudget implementation and to some extent overalleconomic growth ofthecountry.As at 3oth June 2025,pending billsfor theNational GovernmentMDAs amounted toKshs.524.84billion,compared to Kshs.516.27 billion reported as of 30 June 2024. The pending Bills were made up of Kshs.274.34 billion (52 per cent) for Recurrent Votes and Kshs.250.50 billion (48 per cent) for Development Votes.

Of the pending bills, Kshs.404.33 billion (77 per cent) is owing from State Corporations and Kshs.120.51 billion (23 per cent) from MDAs. The MDAs' pending bills, mainly historical bills, comprised of Kshs.81.06 billion(67 per cent) for recurrent expenditure and Kshs.39.46 billion (33 per cent) for development expenditure. The major MDAs under thepurviewoftheCommitteewithpendingBillsincluded theStateDepartment for Internal Security- Kshs. 14,560 million, National Police Service- Kshs. 13,368.8 million, the State Department for Immigration and Citizen Services-Ksh.6,289 million, Executive Office of the President -Kshs. 3,388.8 million, and Office of the Deputy President-Kshs.1,794million.

4. SupplementaryBudgets and their impacts on Balances -In the FY 2024/25,the national government,through the National Treasury,prepared three supplementary budgets that the National Assembly approved. Analysis of financial and non-financial performance submitted by MDAs to the Office of the Controller of Budget shows that some budget lineitemsrecorded negativebalances,as buttressed by absorption above100 per cent. (This was the case with the state Department for Immigration & Citizen Services as well as theStateDepartmentforParliamentaryAffairs)Thisis attributed tobudget cuts on line items with expenditurein the Supplementary Budgets.Negative balances on budget items indicate non-compliance with the basic accounting principles and prudent financial practices. To avoid overdrawing budget items, the Controller of Budget recommends that theNational Treasury ensure that expenditure performance is updated the National Assembly. 5. Budgeting for Results-Analysis of financial and non-financial reports submitted to the Controller of Budget by MDAs shows a mismatch between financial and non-financial parameters.Notably, there are circumstances where MDAs recorded an absorption rate of 1ooper cent of the budget and,on the other hand,recorded a low achievement of the key performance indicators/targets. This makes it hard to relate the critical performance indicators and output as budgeted in the Programme Based Budget and to track implementation of the GovernmentAgenda.This may be due tofailure tostick to the workplansandimplementactivitiesoutsidethebudget 3. 6.Despite having approved the budget for FY 2024/2025, the estimates were revised three timesin thecourse ofbudgetimplementationwiththelastrevisionhavingbeen doneless than one week to the end of the financial year. Such frequent revision of the budget dents the credibility of the Annual Appropriation, while enacting supplementary appropriation less than a week to the end of the financial year makes such expenditures not to be realized.

B.COMMITTEERECOMMENDATIONS

• 1.TheCommittee having reviewed the Budget Performance for thefinancial year 2024/2025recommends:
• a.THAT,all Accounting Officers for MDAsunder thepurview of the Committee to submitQuarterlyPerformancereportsthatexplicitlylinkfinancialabsorptionto achievementofsettargetsandfurtheralignExchequerReleasestoPerformance outcomes.Thisreportshouldbesubmitted to theCommitteenotlater than30 days aftertheendofeveryquarter.
• b.THAT,all Accounting Officers for MDAs under the purview of the Committee to prepare a comprehensive project completion plan listing all ongoing and stalled projects, their funding gaps, expected completion dates, and implementation status and ensure that all ongoing and stalled projects are prioritised for resource allocation before introducing any new project in the FY 2025/2026.
• THAT, All MDAs to enforce a clear and time bound Pending Bills clearance strategy and ensure thatverified historical pendingbills arereducedby20%by3othJune2026 and thecurrent-yeareligiblependingbills are cleared by1oopercentwithin 9odays ofinvoiceprocessing startingJanuary2026.
• d.THAT, to improve supplementary Budget controls, prevent negative balances, the National Treasury to submit alongside supplementary Budget, expenditure data that is current at thepoint of revising thebudget,and ensure zeronegativebalances on budget line items for all MDAs.
• THAT, to enforce results-based Budgeting and adherence to work Plans, all MDAs to align their AnnualWorkPlansstrictlywith theApprovedProgram-BasedBudget (PBB) outputs and key performance indicators, and fiuture reporting to the National Assembly on Budget performance be strictly in conformity to the approved PBB.
• THAT, the National Treasury implements the National Assembly resolution of limiting supplementary budget submissions to a maximum of twoper financial yearexcept in cases of national emergencies requiring parliamentary approval. Starting FY 2025/26,ensure that all supplementary budgets are submitted nolater than 31 March while enforcinga cut-off at least 6odaysbefore theendofthefinancialyear toprevent last-minuterevisions and enhanceimplementation feasibility.

MIN./NO./DC-AIS/2025/474:ANYOTHERBUSINESS

Therewasnootherbusiness.

MIN./NO./DC-AIS/2025/475:ADJOURNMENT

There being no other business, the meeting was adjourned at 11.18 pm. The next meeting will heldbe onnotice.

20-/:2025

SIGNED

DATE

HON.GABRIELTONGOYO,CBS,MP

CHAIRPERSON

DEPARTMENTALCOMMITTEEONADMINISTRATION&INTERNALSECURITY

THENATIONALASSEMBLY I3THPARLIAMENT-FOURTHSESSION2025 COMMITTEEONADMINISTRATIONANDINTERNALSECURITY

REPORTADOPTIONLISTOFTHE

DEPARTMENTALCOMMITTEEONADMINISTRATIONANDINTERNALSECURITY ON THE BUDGETIMPLEMENTATION OVERSIGHTFOR THE FINANCIALYEAR 2024/2025.

We, the undersigned Members of the Departmental Committee on Administration and Internal Security do hereby append our signatures to adopt this Report

Date: &u-1-Q02s

| No. | MEMBER | SIGNATURE | |-------|-------------------------------------------------------|-------------| | I. | Hon. Gabriel Koshal Tongoyo, CBS, MP - Chairperson | | | 2. | Hon. Col (Rtd) Dido Rasso, MBS, MP - Vice Chairperson | J5JJ | | 3. | Hon. Kaluma George Peter, CBS, MP | | | 4. | Hon. Fred C. Kapondi, MP | | | 5. | Hon. Aduma Owuor, MP | | | 6. | Hon. Sarah Paulata Korere, MP | borere | | 7. | Hon. Liza Chepkorir Chelule, MP | DeeeeeQ | | 8. | Hon. Mburu Kahangara, MP | | | 9. | Hon.Protus Ewesit Akujah, MP | | | 10. | Hon (Dr)Peter Francis Masara, MP | | | I1. | Hon. Oku Kaunya, MP | | | 12. | Hon. Rozaah Akinyi Buyu, MP | | | 13. | Hon. Francis Kipyegon Sigei, EBS, MP | | | 14. | Hon. Caroline Jeptoo Ng'elechei, MP | | | 15. | Hon.Hussein Weytan Mohammed, MP | |