Parliament was thrown into a heated session on Thursday as lawmakers demanded explanations over more than Sh1.8 billion that has remained unspent in Kenyan foreign missions’ accounts, years after the funds were allocated for development projects and embassy operations.
The Public Accounts Committee (PAC), reviewing the State Department for Foreign Affairs’ audited financial statements for the year ending June 2023, described the unspent funds as a “serious accountability lapse.”
Auditor-General Nancy Gathungu’s report revealed that Sh1,885,098,283 had accumulated over multiple years because missions did not return unutilized allocations at the end of each financial year.
Principal Secretary for Foreign Affairs Abraham Korir Sing’Oei defended the funds, insisting they were not idle.
“The money represents development cash flow balances held across various missions and not idle funds,” he told the PAC, chaired by Butere MP Tindi Mwale.
Sing’Oei explained that the balance in Washington, DC, included contractors’ retention payments “for works already completed and certified, pending the conclusion of the defects liability period before final handover of the project,” alongside allocations for ongoing refurbishment work.
Regarding London, he said the funds were set aside for purchasing a Chancery property. “While the property had been identified and the procurement process finalised, the funds could not be spent because the Attorney General had not yet given concurrence for the procurement of a conveyancing lawyer to prepare the necessary documentation,” Sing’oei said.
He added that part of the London balance came from locally generated revenue through consular services, later regularised under Supplementary Estimate No. 2 of FY 2023/24.
The PS acknowledged that some missions failed to transfer balances to deposit accounts at the end of the financial year but assured that new measures would ensure compliance.
“Going forward, such balances will be placed into deposit accounts, from where payments will be effected for completed works, certified and billed, or for property acquisitions, as in the London case,” he said.
Lawmakers were unconvinced by the explanations.
Bura MP Yaqub Adow asked, “What is the difficulty in apportioning this figure across the three items? How do we establish, for instance, how much of the Sh1 billion is tied to Washington and Addis Ababa, how much relates to London development, and how much is attributable to London revenue?”
Aldai MP Marianne Kitany demanded documents on the London property deal. “This raises questions: does it mean the procurement was undertaken without legal representation in the first place?” she asked.
Rarieda MP and senior counsel Otiende Amollo expressed frustration over the delays. “Everything else has been completed, yet we are told the delay is due to a pending letter from the Attorney General,” he said.
Sing’Oei clarified that the Attorney General had since approved the process. “What remains at this stage is the disbursement by the National Treasury of the outstanding Sh400 million required to close the transaction,” he said, noting that the initial deal under the previous administration collapsed, but the new process secured a lower price.
The ministry confirmed that only about Sh215 million of the total sum relates to Washington and Addis Ababa, with the bulk tied to the London project.
PAC directed the ministry to submit a detailed report on the London purchase and all other mission expenditures.
