The Independent Electoral and Boundaries Commission (IEBC) has set campaign spending limits for electoral candidates and political parties ahead of next year’s election, gazetting a KSh6.11 billion spending ceiling for presidential candidates and a KSh24.45 billion aggregate ceiling for political parties.
- •Transport is by far the largest permitted party expenditure, with a ceiling of KSh16.13 billion, equivalent to 66% of the party limit, while other major expenditures include advertising and media promotion account at KSh2.52 billion, election agents KSh2.08 billion, administration KSh1.29 billion, and publicity materials KSh1.07 billion.
- •The IEBC rules also permit substantial concentration of campaign financing, where a single contributor can provide up to 20% of the applicable contribution ceiling.
- •Banks can also lend to candidates and parties on normal commercial terms, with such loans recognised as legitimate campaign contributions.
“The prescribed Contribution and Spending Limits are intended to promote a level playing field by ensuring that financial resources do not disproportionately determine political participation, access to voters or electoral competition,” IEBC said in a statement.
The spending ceilings for devolved elections are also affected by geography. The electoral commission allocates 70% of the relevant costs according to population and 30% according to land area, producing large differences between urban and sparsely populated areas.
For instance, Turbi Ward in Marsabit, with 20,383 people spread across about 10,820.8 square kilometres, has a spending ceiling of KSh22.1 million while Embakasi Ward in Nairobi, with 157,198 people and 22.5o square kilometres, has a ceiling of Sh10.68 million. A candidate in Turbi, therefore, has a legal spending allowance more than twice that of a candidate in Embakasi despite having fewer residents.
Candidates for county governors, senators, and women representatives in Nairobi have the highest spending limit at KSh 181.3 million, followed by those in Turkana, Marsabit, and Wajir. The lowest county spending limit is Lamu with KSh28.7 million.
For MP aspirants, North Horr has the highest spending limit at KSh100.4 million, followed by Wajir South at Sh73 million and Turkana North at Sh59.7 million, while Wundanyi in Taita Taveta County has the lowest spending limit at KSh15.4 million.
The electoral period in Kenya sees massive cash handouts and immense investments in party-branded paraphernalia such as posters, t-shirts, shukas for women, boda boda reflectors, and other household foodstuff or goodies meant to influence voting for a certain candidate. The mind-boggling sums of money spent during the campaign season has often been blamed for exacerbating corruption and theft of public funds by current office holders.
Financial Structures
The IEBC regulations also require every candidate, political party, referendum committee and supporting organisation to maintain a dedicated campaign account at a registered deposit-taking institution. Banks can also lend to candidates and parties on normal commercial terms, with such loans recognised as legitimate campaign contributions.
That creates a potential lending market but leaves banks exposed to an unusual repayment risk if an unsuccessful candidate’s political income and fundraising capacity fall sharply after the election.
Additionally, any candidate, party or committee spending more than KSh1 million must have its campaign expenditure independently audited before submitting the report to IEBC. Since the spending ceilings for even the smallest wards exceed that threshold, serious candidates will effectively require external audits.
Political fundraising will also face tighter documentation as contributions above KSh20,000 must be receipted and the donor identified. Anonymous or undisclosed contributions must be surrendered to IEBC and transferred to the Consolidated Fund within 14 days.
To prepare for the elections, IEBC has also begun its own procurement cycle for the supply, installation, testing, commissioning, support and maintenance of the Integrated Elections Management System, including hardware and accessories. The tender closes in September and requires bidders to provide KSh30 million in bid security.
A second tender will cover ballot papers, tactile folders, the register of voters and statutory election-result declaration forms, requiring KSh40 million in bid security.
