A storm erupted in Parliament yesterday after lawmakers raised concern over more than Sh1.8 billion still held in Kenya’s foreign missions years after the money was allocated for development projects and embassy operations.

The matter came up during a Public Accounts Committee (PAC) session that examined the audited financial statements of the State Department for Foreign Affairs for the year ending June 2023. The funds are reportedly held in Kenya’s embassies in Washington, Addis Ababa, and London.

Auditor-General Nancy Gathungu, in her report, questioned why the cash — listed as development balances — had not been surrendered at the end of each financial year. She flagged it as a serious accountability issue.

But Principal Secretary for Foreign Affairs, Dr. Abraham Korir Sing’oei, defended the balances, telling the committee chaired by Butere MP Tindi Mwale that the money was not idle. He said it was tied to ongoing projects and pending payments.

“In Washington, the balance includes contractors’ retention money for completed works, pending the close of the defects liability period, and funds for refurbishment projects,” Dr. Sing’oei said. He added that the London mission’s allocation was earmarked for the purchase of a Chancery property.

The PS explained that although the procurement process for the London property had been finalized, the transaction stalled because the Attorney General’s concurrence on hiring a conveyancing lawyer was delayed. “The funds were therefore retained in the mission’s deposit account awaiting final execution of the sale,” he said.

Part of the London balance, he added, came from locally generated revenue through consular services. These were later regularized under the 2023/24 supplementary budget to support operating costs.

Dr. Sing’oei admitted that some missions had failed to transfer their development balances to deposit accounts on time but assured MPs that corrective measures were underway.

However, committee members expressed dissatisfaction, accusing the ministry of failing to provide clear records. Bura MP Yaqub Adow demanded a breakdown of the figures across the three missions. “How do we know how much belongs to Washington, Addis Ababa, or London if you only give us one figure?” he asked.

Aldai MP Marianne Kitany pressed for documents to back the London property purchase, questioning whether the procurement had been carried out without legal representation. “This process remains unclear. We need full details on who handled the conveyancing from the start,” she said.

Rarieda MP and senior counsel Otiende Amollo also raised concern over delays in securing the London property despite funds being allocated years ago. “We recommended this purchase ourselves when we discovered the mission was operating on an expired lease. Yet, years later, we are told money is still lying idle,” he said.

Dr. Sing’oei clarified that while there were initial delays under the previous administration, a new procurement process had since been undertaken, with better terms negotiated. He confirmed that the Attorney General had already approved the legal requirements, and the only pending step was for the National Treasury to release Sh400 million to complete the purchase.

“The Attorney General has given all approvals. What remains is disbursement of the balance by Treasury so that we can finalize the acquisition,” the PS told MPs.

PAC directed the ministry to provide a detailed and updated report breaking down the Sh1.885 billion across missions and giving the full status of the London property deal.