Broke Government? Controller of Budget Decries Underfunding Of Her Office, Warns Of Shutdown
The Controller of Budget (CoB), Margaret Nyakang’o, has raised concerns that key government oversight functions could be crippled due to serious funding gaps.
Budget Cuts Threaten Automation of Financial Oversight
One of the most affected areas is the automation of financial oversight. This process is essential for streamlining government spending approvals and ensuring transparency in public fund management.
The CoB had proposed a budget of Sh50 million to develop the Controller of Budget Management Information System (COBMIS). However, the project received zero funding, halting progress.
Speaking to the Senate Finance Committee, Nyakang’o revealed that her office had requested Sh1.6 billion for the 2025/26 financial year. However, the amount was cut to Sh777.5 million in the Budget Policy Statement. Of this, only Sh613.8 million has been allocated, leaving a shortfall of Sh579.3 million for essential operations.
“We planned Sh50 million for automation, but we received nothing. Without funds, automation is impossible,” she explained.
Challenges in Full Automation
Nyakang’o noted that while 20% of the budget withdrawal process had been automated by December 2024, full implementation requires cooperation from key institutions, including the National Treasury and the Central Bank of Kenya (CBK).
She emphasized that her office cannot complete the automation alone. Other government departments must also digitize their systems for the process to work effectively.
“Automation is not just about us. The National Treasury and CBK must also automate their systems. We hope that by 2025/2026, all stakeholders will come together to finalize the process,” she added.
Other Underfunded Areas
Apart from automation, other critical functions remain underfunded:
- Staff Salaries: A new staff grading structure faces a funding gap of Sh182.8 million.
- Public Awareness: The CoB needs Sh61.1 million to educate the public about budget processes.
- Legislative Reforms: The office had projected Sh102 million for amending the CoB Act, 2016, and developing new regulations. However, no funds have been allocated.
Nyakang’o also disclosed that budget constraints have limited her office’s operations. “Since I took office, I have never traveled outside Kenya. This is my sixth year,” she stated, highlighting the funding crisis.
Senators Express Concern
Senators in the Finance Committee criticized the drastic budget cuts, warning that they could weaken financial oversight and accountability in government spending.
Some lawmakers questioned whether the budget reductions were a deliberate move to limit independent financial scrutiny.
Kakamega Senator Bonnie Khalwale raised concerns about low salaries for CoB employees. “We cannot have highly qualified young professionals earning so little in such a crucial office. Share the details with us so we can support your funding requests,” he said.
Conclusion
The severe budget shortfalls affecting the Controller of Budget pose a significant risk to financial oversight in Kenya. Without adequate funding, automation efforts, staff compensation, public awareness, and legal reforms may stall. Lawmakers are now pushing for better funding to ensure transparency and accountability in government spending.
Broke Government? Controller of Budget Decries Underfunding Of Her Office, Warns Of Shutdown
