February 21, 2025
Nairobi, Kenya
Business

Budget showdown: Ruto and Raila allies clash, delaying crucial committee reforms

The ongoing disputes between President William Ruto’s and Raila Odinga’s parties have put the Budget Policy Statement (BPS) 2025 and Supplementary Budget II for the fiscal year 2023/25 at serious risk.

The failure to reconstitute key parliamentary committees has caused delays in the budget process, raising concerns about whether the government will meet its financial planning deadlines.

The deadlock has affected the smooth running of parliamentary business, with lawmakers unable to move forward with crucial deliberations on the country’s fiscal policies.

The Budget and Appropriations Committee (BAC) plays a key role in processing the BPS and other financial matters. However, its current status remains uncertain due to the delays in committee reconstitution.

The BAC is responsible for reviewing budget estimates and ensuring that government spending aligns with economic priorities.

Without a functional BAC, the entire budgeting process is at risk of stalling, which could disrupt government programs and service delivery.

On Tuesday, Speaker Moses Wetang’ula emphasized the urgency of reconstituting the committees. He urged both Majority and Minority leaders to expedite the process to prevent further delays.

According to Wetang’ula, the Committee on Selection has yet to finalize member nominations for the lapsed committees, creating a bottleneck in parliamentary operations.

The longer the stalemate continues, the more difficult it becomes to keep government finances in order.The BPS and Medium-Term Debt Management Strategy (MTDMS) were formally presented to the National Assembly on February 13, 2025.

These documents are crucial in shaping the country’s financial outlook, as they outline revenue collection plans, expenditure priorities, and strategies to manage public debt.

However, the delay in reconstituting committees means that these plans cannot be reviewed effectively.

Eighteen House committees, including the BAC and the Public Debt and Privatization Committee, have lapsed and are yet to be reconstituted.

While some departmental committees are still active and have been working on the BPS, their efforts are limited.

They must submit their recommendations to the BAC before any decisions can be made. Without a properly constituted BAC, these recommendations risk being ignored, further complicating the situation.

Recognizing the urgency of the matter, Speaker Wetang’ula has directed the Liaison Committee, which consists of all House committee chairs, to temporarily handle the BPS.

This move is intended to keep the process on track, but it is only a temporary solution.The prolonged impasse has far-reaching implications. If the deadlock is not resolved soon, the government may struggle to secure necessary budget approvals, affecting the implementation of crucial projects. Delays in budgetary approvals can also hurt investor confidence and slow down economic growth.

The ongoing dispute between Ruto’s and Odinga’s factions is not just a political issue it is a governance crisis that threatens the country’s financial stability.

Resolving the deadlock is essential to ensuring that the National Assembly fulfills its fiscal responsibilities. Both parties must set aside their political differences and prioritize the country’s economic well-being.

If the committees are not reconstituted soon, Kenya risks facing financial uncertainty that could have long-term consequences.

The coming days will be crucial in determining whether the leadership in Parliament can rise above their disagreements and put the country’s interests first.

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