Dr. Margaret Nyakang’o, the Controller of Budget (COB), appeared before the Constitution Implementation Oversight Committee (CIOC) on Tuesday, September 17 to address the significant challenges her office faces in fulfilling its mandate.
The session revealed hurdles in budget oversight, with concerns raised about pending bills, corruption, wasteful spending, and the housing levy.
The COB’s office is tasked with overseeing, controlling, and reporting on government expenditure. However, inefficiencies in handling pending bills and controlling wasteful spending became a central focus of the session. Committee member MP Gitonga Mukunji pressed the COB, asking, “Pending bills and corruption—what is happening?”
In response, Dr. Nyakang’o explained that her office assesses lawful pending bills but highlighted that once funds reach accounts, they are sometimes diverted. “Some officials prioritize specific pending bills to avoid issues like PAYE tax voiding or corruption-related substitutions,” she revealed. Additionally, overestimated revenue projections contribute to the accumulation of pending bills.
The MP Gathoni Wamuchomba-led committee also questioned the use of commercial banks by counties instead of the Central Bank of Kenya (CBK), contrary to regulation. “Counties have accounts in different banks instead of consolidating their funds at the CBK. We have investigated and sensitized the public on this,” she said.
One major challenge the COB noted was her office’s lack of enforcement powers. “The Act leaves us with no teeth to bite, but our reports are proper,” Dr. Nyakang’o emphasized. While her office compiles and publicizes detailed reports, further action lies with other bodies. She called for stronger media partnerships and public engagement to hold officials accountable.
Budget constraints also hampered the COB’s operations. Dr. Nyakang’o pointed out that her office operates on Ksh 700 million annually, “yet we pay an overdraft interest of Ksh 1 billion a month,” underscoring how these limitations impact their ability to fulfill their mandate.
Responding to questions from MP Wamuchomba, the COB clarified that her office does not oversee the funds related to the Housing Levy, distancing itself from its management.
The Committee’s concerns reflect broader frustrations among Kenyans about public resource mismanagement and its effects on service delivery.
