A firestorm erupted in Parliament yesterday as the Public Accounts Committee (PAC) slammed the Ministry of Foreign Affairs over KSh 1.8 billion sitting frozen in Kenya’s foreign missions, years after the funds were allocated for development projects and embassy operations.
The committee raised the alarm over funds held in Kenya’s embassies in Washington, Addis Ababa, and London, describing the situation as a glaring lapse in financial accountability. The controversy emerged while scrutinizing the audited financial statements of the State Department for Foreign Affairs for the year ending June 2023.
Auditor-General Nancy Gathungu’s report highlighted that the KSh 1.8 billion, recorded as development cash book balances in missions abroad, had accumulated over several years due to failure by embassies to return unutilized funds at the end of each financial year.
Appearing before PAC, chaired by Butere MP Hon. Tindi Mwale, Principal Secretary Dr. Abraham Korir Sing’oei defended the funds, insisting that the money was not idle but earmarked for ongoing development projects and operational needs of the missions.
“In Washington, D.C., these balances include contractors’ retention for completed works pending the defects liability period and ongoing refurbishment allocations. The funds will be released directly from deposit accounts once the works are certified,” Dr. Sing’oei explained.
Regarding the London mission, Dr. Sing’oei revealed that funds were reserved for the purchase of a Chancery property. The acquisition, he said, was delayed because the Attorney General’s office had not yet approved the procurement of a conveyancing lawyer to finalize legal documents. He also noted that part of the balance originated from consular services and had been regularized under supplementary estimates for lawful use.
Despite these clarifications, lawmakers were unconvinced. Bura MP Yaqub Adow pressed for a clear breakdown of how much of the KSh 1.8 billion relates to Washington, Addis Ababa, and London. Aldai MP Hon. Marianne Kitany demanded documentary evidence for the London Chancery purchase, questioning why legal representation was not initially secured.
Rarieda MP and senior counsel Hon. Otiende Amollo expressed frustration over prolonged delays in acquiring the London property, despite KSh 1.669 billion having been allocated in the 2022/2023 financial year.
Dr. Sing’oei cited Regulation 56 of the Public Finance Management Regulations, which allows retention of funds for multi-year projects without returning them to the Treasury. He also explained that the National Treasury had initially withdrawn part of the allocation for the London property, which contributed to the delay.
“The Attorney General has since granted approvals, including the authorization for a solicitor to finalize conveyancing. The remaining step is the release of KSh 400 million by the Treasury to complete the purchase,” Dr. Sing’oei assured MPs.
PAC directed the ministry to provide Parliament with a detailed breakdown of the KSh 1.885 billion across missions and an updated report on all mission expenditures, warning that continued delays could constitute serious breaches of public finance management.
Exclusive reporting by Parliament
