The National Assembly was in uproar on Thursday as legislators sought clarity on over Sh1.8 billion that has remained unutilized in Kenyan foreign missions, despite being allocated years ago for embassy operations and development projects.

The Public Accounts Committee (PAC), examining the State Department for Foreign Affairs’ audited accounts for the year ending June 2023, described the unspent funds as a “serious accountability lapse.”

Auditor-General Nancy Gathungu’s report highlighted that Sh1,885,098,283 had accumulated over several years because missions failed to return unused allocations at the end of each financial year.

Principal Secretary for Foreign Affairs Abraham Korir Sing’oei defended the money, stressing it is not idle.

“The money represents development cash flow balances held across various missions and not idle funds,” he told the committee, chaired by Butere MP Tindi Mwale.

Sing’oei detailed that Washington, DC’s balance included contractors’ retention payments “for works already completed and certified, pending the conclusion of the defects liability period before final handover of the project,” as well as funds for ongoing refurbishment.

For London, the PS said the funds were reserved for acquiring a Chancery property.

“While the property had been identified and the procurement process finalised, the funds could not be spent because the Attorney General had not yet given concurrence for the procurement of a conveyancing lawyer to prepare the necessary documentation,” he explained.

Part of the London sum also came from revenue generated locally through consular services, later adjusted under Supplementary Estimate No. 2 of FY 2023/24.

PS Sing’oei admitted that some missions had failed to move balances into deposit accounts by the end of the financial year but promised stronger enforcement going forward.

“Going forward, such balances will be placed into deposit accounts, from where payments will be effected for completed works, certified and billed, or for property acquisitions, as in the London case,” he said.

MPs were unsatisfied with the explanations. Bura MP Yaqub Adow asked, “What is the difficulty in apportioning this figure across the three items? How do we establish, for instance, how much of the Sh1 billion is tied to Washington and Addis Ababa, how much relates to London development, and how much is attributable to London revenue?”

Aldai MP Marianne Kitany pressed for documents on the London property deal. “This raises questions: does it mean the procurement was undertaken without legal representation in the first place?” she asked.

Rarieda MP and senior counsel Otiende Amollo expressed disappointment over delays. “Everything else has been completed, yet we are told the delay is due to a pending letter from the Attorney General,” he said.

PS Sing’oei said the Attorney General had since approved the process.

“What remains at this stage is the disbursement by the National Treasury of the outstanding Sh400 million required to close the transaction,” he noted, adding that the initial deal under the previous administration fell through, but the new process secured a lower price.

The ministry confirmed that roughly Sh215 million relates to Washington and Addis Ababa, while the majority is tied to the London project. PAC has instructed the ministry to submit a detailed report on the London purchase and all other expenditures in foreign missions.