The misuse of taxpayers' money is under scrutiny as legal battles continue over the newly imposed taxes in the Finance Act 2023. The focus is on the wastage of billions of shillings each year. President William Ruto recently approved the Act, which aims to generate an additional Sh289 billion to fund a budget of Sh3.68 trillion for the current year.

The tax measures include doubling the value added tax (VAT) on fuel from 8% to 16% and implementing a mandatory 1.5% housing tax deducted from workers' monthly salaries. Despite these burdens on taxpayers, the government still squanders a significant amount of money annually.

Here are some ways in which taxpayers' money is wasted or ends up benefiting only a few individuals:

1. Commitment fees: The Kenyan government pays billions of shillings in commitment fees for undisbursed loans, which could have been allocated to essential projects. Commitment fees are charged to borrowers to ensure that the lender reserves the funds for the loan. In the first half of the FY 2022/23, the Treasury paid Sh680 million in commitment fees, and in the previous fiscal year, Sh1.4 billion was spent on undisbursed loans.

2. State-guaranteed non-performing loans: Taxpayers are at risk of losing Sh218.8 billion due to loans borrowed by state-owned companies that have defaulted on repayment. These loans were guaranteed by the government, making the state responsible for payment. The National Assembly's Public Debt and Privatization Committee has warned that legal suits against the government could further burden taxpayers with additional costs.

3. Abandoned big-money projects: When a new government comes into power with different priorities, millions or even billions of shillings are wasted on projects that are abandoned. For example, the Green Park Terminus, costing Sh250 million, will be demolished to make way for a conference center. Additionally, expensive government officials' houses remain unoccupied, such as the Chief Justice's official residence in Nairobi, which has been vacant for ten years.

4. Ghost workers: Since the introduction of devolution in Kenya, county officials have embezzled billions of shillings by creating fictitious employees. Audit reports reveal that corrupt county officials have stolen over Sh35 billion through these fraudulent practices.

5. Unsupported expenditures: Government ministries, departments, and agencies spend billions of shillings without providing evidence of how the funds were utilized. In the FY 2021/22, unsupported expenditure amounted to Sh5.8 billion, spent on various items like travel, consultancy, emergency relief, purchases, and printing.

6. Non-essential spending: President Ruto expressed his intention to cut Sh300 billion from non-essential expenditures, such as travel, hospitality, accommodation, printing, and airtime. However, this budget reduction has not been realized, indicating the potential for substantial savings if the government exercises fiscal restraint.

7. Questionable renovations: Government buildings receive annual budgetary allocations for renovations that often remain unfinished. For instance, over Sh1.2 billion has been allocated to refurbish Bima House and Herufi House, but the renovations seem to be never-ending.

8. Lavish personal perks amid meager development allocations: County governments allocate a significant portion of their budgets to recurrent expenses, primarily salaries and allowances, while allocating only a small fraction to development projects. Similarly, the national government has a history of spending below the required limit on development projects, as highlighted in the Auditor-General's report on the 2021/2022 budget.