MPs Sound Alarm on Ksh 1.8 Billion Idle in Kenyan Embassies Abroad

Kenya’s Public Accounts Committee (PAC) is investigating Ksh1.8 billion in unspent funds held by diplomatic missions in Washington, London, and Addis Ababa.

The probe follows findings in the Auditor General’s latest report, which highlighted the accumulation of development funds over multiple financial years. These funds, allocated for capital projects at the missions, remained unused due to delays in returning unutilised balances at the end of each budget cycle.

Foreign Affairs Principal Secretary Dr Korir Sing’oei, appearing before the committee on Friday, said the funds were committed to specific infrastructure projects. He cited retention payments for completed works in Washington, ongoing refurbishments, and a pending property acquisition in London as the main reasons for the balances.

Dr Sing’oei explained that in Washington, the funds were set aside for contractor retention payments following the completion of certified works. The money, he said, is being held in deposit accounts and will be released after the defects liability period, thus falling outside the current budget cycle.

However, the majority of the amount, approximately Ksh1.7 billion, is held by the London mission for the planned purchase of a new Chancery. Although the property has been identified and the procurement process reportedly concluded, the transaction is on hold pending legal clearance from the Attorney General’s office to engage a conveyancing lawyer.

Members of the committee raised concerns over the handling of the London transaction. Aldai MP Marianne Kitany questioned whether the procurement was properly safeguarded, asking the Ministry to provide documents outlining the timeline, contractual terms, and legal advice sought during the process.

“If the procurement was finalised without legal counsel, what protections were in place to ensure due process?” Kitany asked, adding that the role of the Attorney General’s office needed to be clarified, especially in light of the Ministry’s plan to appoint a separate conveyancing lawyer.

The PAC has directed the Ministry of Foreign Affairs to submit a detailed report to Parliament on the London property transaction and other outstanding mission expenditures.