Spotlight on billions ofsecret expenditure by Ruto team

President William Ruto’s administration has spent billions of shillings characterised as “confidential expenditure”, effectively blocking public scrutiny.

A report by Auditor General Nancy Gathungu raises the red flag that some of the government entities gobbling up the billions are not eligible for the secret vote.

Confidential expenditure is money spent mostly by security agencies and whose details may not be laid bare by auditors because of the sensitivity of the operations.

However, a new audit report shows that at least 12 government agencies, including the ministries of Mining and Lands, used their allocations as confidential expenditure.

The Judiciary, the Judicial Service Commission and the Office of Director of Public Prosecutions also had confidential expenditures.

It’s not clear what the money was used for and how much is involved.

Auditor General Gathungu now says there is a need to enhance the accountability of confidential expenditure. She also emphasises that government entities eligible for confidential expenditure should be clearly defined.

“There is a need to enhance accountability of confidential expenditure through review of the regulations to clearly define entities eligible for confidential security-related expenditures and to specify what constitutes security-related operations,” Gathungu says in the audit report of the last financial year, a copy of which the Star has obtained.

Other agencies that spent under confidential expenditure include the Executive Office of the President, office of the Deputy President, State House, National Intelligence Service, Correctional Services, and the National Police Service.

Internal Security and National Administration, Defence and Foreign and Diaspora Affairs ministries also had secret expenditure.

It remains unclear what the agencies did with the confidential vote. Globally, confidential funds have been used to circumvent public scrutiny and have always been avenues for corruption.

Once expenditures are labeled as “confidential”, bureaucrats have the freedom to use and abuse taxpayers’ money with little or no oversight.

Kitui Central MP Makali Mulu told the Star Kenyans have a reason to be worried about such a high number of confidential votes, considering that they are not open to auditing.

“Confidential votes are for security, not general purpose. What do confidential votes have to do with mining, for instance?” he posed.

“We have a reason to worry because so much money is involved in these kitties.” Gathungu says while a certificate of confidential expenditure was issued, supported by a declaration from the accounting officer affirming proper use of funds in compliance with the law, that alone is not enough.

She says government agencies should establish internal oversight mechanisms and processes that include detailed budget projections and post-operation financial summaries.

This, she says, would address risks and ensure responsible use and accountability of the funds, beyond the certificate.

“The measures will strengthen governance, foster trust, and ensure funds are utilised responsibly without compromising state security,” the chief auditor said.

Gathungu joins a growing list of oversight agents calling for more accountability for the secret votes held by the presidency and security agencies.

MPs earlier raised concerns that the funds were prone to misuse by the concerned handlers at the expense of taxpayers’ sweat.

Lawmakers have been pushing that two or three members of the security committee be granted access to details of the expenditure.

The collapse of the Finance Bill, 2024, brought light to the billions allocated to the vote. President William Ruto, then under pressure from Gen Zs, directed that the expenditures be slashed – entirely in some cases.

At that time, budget books showed that the presidency, a handful of state departments and the police alone had Sh15 billion.

The amounts, mostly marked with obscure names in budget books, tower above vote heads like hospitality, travel, and salaries.

Governance experts argue that the funds could be channeled to more pressing priorities, which have serious budget shortfalls. Diana Gichengo, executive director of The Institute for Social Accountability, says what the government is doing is unacceptable.

“Yes, it is a major cause of concern because it offends the principles of public finance that require that there shall be openness and accountability, including public participation in financial matters and that the public finance system shall promote an equitable society,” Gichengo told the Star.

She said the confidential vote has previously been abused and used perpetrate ills, including bribery and irregular surveillance.

“This is not proper anymore and, if anything, the vote should be left to the presidency and minimally to NIS,” she stated.