How Government waste is making life more expensive for Kenyans

Wasteful government expenditure is adding to the financial burden facing Kenyans, with Controller of Budget Margaret Nyakang’o warning that unnecessary spending, inflated project costs and misuse of public resources are pushing up the cost of living while denying taxpayers value for their money.

Nyakang’o said the government was spending increasing amounts of public money on activities that deliver little benefit, creating additional pressure on an economy where households are already struggling with the rising cost of goods and services.

Speaking on Thursday, the Controller of Budget cautioned that unless public institutions and political leaders reduced unnecessary expenditure, the country would continue facing economic pressure, with ordinary citizens ultimately bearing the cost of poor financial decisions.

She called on government officials to review their spending habits and ensure that every shilling collected from taxpayers was used responsibly.

“As long as we continue wasting, the prices are only going to go up. Government officials and political leaders need to cut unnecessary expenditure and ensure taxpayers get value for their money,” Nyakang’o said.

She observed that public institutions were increasingly using more resources to achieve fewer results, citing expensive government functions and unnecessary activities by public officials as some of the practices draining public finances.

“More and more money is being used to do less and less, there are expensive government activities and unnecessary spending by public officials as examples of practices that drain resources without delivering corresponding benefits,” added Nyakang’o.

Nyakang’o challenged leaders to reconsider the high costs associated with government operations, questioning the need to hold official meetings and functions in expensive venues when more affordable options could serve the same purpose.

She singled out meetings organised in high-end hotels as an example of spending that could be avoided, arguing that public officials should demonstrate financial discipline instead of using public resources on costly arrangements.

According to the Controller of Budget, leaders were among those contributing to the problem through spending decisions that fail to consider the economic difficulties facing ordinary citizens.

“Those of us who are leaders, we are the ones at the forefront of wastefulness. We do things at a cost that is unnecessary. In the process, we hurt those other people who are struggling to survive,” she said.

She further called for stronger public oversight, urging Kenyans to take an active role in monitoring how government institutions spend money and questioning their elected representatives whenever public resources are put to questionable use.

Nyakang’o said her office had identified several practices pointing to poor management of public funds, including ghost projects, abandoned developments, shoddy work, double payments and contractors receiving money that does not match the work completed.

She raised concern over projects where government agencies had released payments far above the actual value of work undertaken, saying such cases raised questions about procurement processes and the supervision of publicly funded developments.

The Controller of Budget urged members of the public to report suspected financial irregularities and provide supporting evidence to help her office investigate the implementation of government projects.

“Citizens should report suspected irregularities and provide evidence that can help us investigate the implementation of government-funded projects,” said Nyakang’o.

She explained that the Office of the Controller of Budget plays a monitoring role by tracking the release and use of public funds throughout the financial year, while the Auditor-General examines how the money was eventually spent.

Where government agencies fail to provide satisfactory responses to concerns raised during monitoring exercises, Nyakang’o said her office forwards the matters to the Auditor-General for further scrutiny.

She cited a stadium project in Gatundu, where the initial contract price of Sh260 million was increased to Sh349 million, raising questions about the rising cost of the development.

By the time her office inspected the project in May 2026, Sh124 million had already been paid out.

Nyakang’o said the Office of the Controller of Budget had sought an explanation from the accounting officer in the Sports department over concerns identified during the site visit.

The case, she said, highlighted the need for government agencies to account for project costs and ensure that payments made to contractors reflect the actual progress and quality of work delivered.

Beyond monitoring government expenditure, Nyakang’o emphasised the importance of involving citizens in the preparation and implementation of national and county budgets.

She said public participation should go beyond attending budget meetings, urging Kenyans to question spending priorities and ensure that projects financed through taxation respond to the needs of communities.

The Controller of Budget also linked effective budget implementation to the government's ability to collect sufficient revenue, warning that shortfalls in revenue collection leave the government with little choice but to borrow locally or from international lenders to meet its spending obligations.

She called for greater accountability in the management of public finances, saying citizens must take responsibility for following budget decisions and demanding answers from leaders entrusted with public resources.