MPs question low budget absorption in State Department for Cabinet Affairs

A parliamentary committee has raised concerns over the persistent low absorption of funds allocated to the State Department for Cabinet Affairs, warning that continued underutilisation could result in further budget cuts and disrupt the department’s operations.

The National Assembly Departmental Committee on National Administration and Internal Security questioned officials from the department over what lawmakers described as poor expenditure trends since its establishment in the 2023/2024 financial year.

Members of Parliament noted that despite receiving allocations from the Exchequer, the department has consistently struggled to utilise the funds, resulting in a steady decline in annual budget allocations.

The department received Sh900 million in the 2023/2024 financial year. The allocation was reduced to Sh300 million in 2024/2025 and further dropped to Sh235 million in the 2025/2026 financial year. Under the proposed 2026/2027 budget estimates, the department has been allocated Sh269 million.

Appearing before the committee to defend the department’s budget estimates, Idris Salim Dokota, Principal Secretary for Cabinet Affairs in the Office of the Deputy President, attributed the low absorption to challenges linked to the Electronic Government Procurement (e-GP) system.

The e-GP platform is the government’s online procurement system aimed at enhancing transparency and efficiency in public procurement.

Committee chairperson and Gabriel Tongoyo questioned why the department continued to post low absorption rates while other agencies under the committee’s oversight had effectively utilised their allocations.

“Can you explain to this committee why the State Department has consistently recorded low absorption of the budget allocated to it, which has in turn led to your budget being reduced significantly? What exactly is the problem?” Tongoyo asked.

“Remember, we oversee 12 departments and agencies, but your department remains the least in terms of budget absorption,” he added.

In response, Dr Dokota told lawmakers that the department had already submitted its procurement plans and budget lines to the National Treasury, but delays in the operationalisation of the e-GP system had affected payments to suppliers and stalled expenditure.

“The reason we have not spent the money is because most of the items are procurement-related and we are unable to process them fully through the e-GP platform,” he said.

“We have done our part and submitted the required budget lines, but the component of awarding vendors through the system has become problematic. We have written to the National Treasury seeking permission to use IFMIS, but approval has not been granted,” he added.

Dokota further told the committee that suppliers had already been identified and listed, but the inability to capture commitments in the system had delayed payments.

The Principal Secretary, however, defended the department’s performance, saying the low absorption was largely experienced during its formative stages when administrative and operational systems were still being established.