Funding Shortfalls Threaten Key Oversight Functions in Kenya

The Controller of Budget in Kenya warns that funding shortfalls are jeopardizing critical oversight functions, particularly automation efforts. The planned budget was significantly cut, leaving substantial shortfalls for various essential operations. The Senate Finance Committee expressed concern over the impact of these cuts on financial accountability.

Margaret Nyakang’o, the Controller of Budget (CoB) in Kenya, has issued a warning regarding the potential impairment of vital government oversight functions due to significant funding shortfalls. One critical area affected is the automation of financial oversight processes, essential for enhancing transparency and streamlining public fund management. Despite a planned budget of Sh50 million for the Controller of Budget Management Information System (COBMIS), no funding has been allocated to this initiative.

During a session with the Senate Finance Committee, Ms. Nyakang’o indicated that her office requested Sh1.6 billion for the 2025/26 financial year. However, this amount was drastically reduced to Sh777.5 million per the Budget Policy Statement. Ultimately, only Sh613.8 million has been allocated, resulting in a substantial shortfall of Sh579.3 million required for crucial operations. She stated, “We budgeted Sh50 million for the automation system, but we received zero funding, so this again is not going to be possible. We can’t talk about automation with zero budget.”

Although Ms. Nyakang’o noted that 20 percent of the withdrawal process automation had been achieved by December 2024, full implementation cannot occur without the cooperation of other necessary institutions such as the National Treasury and the Central Bank of Kenya. She stressed that the CoB cannot independently automate its processes, as it relies on other entities’ digitization to complete the automation initiative.

Furthermore, the CoB is grappling with various underfunded critical functions, which include a Sh182.8 million deficit for a new staff grading structure. Additionally, Sh61.1 million is required for public awareness campaigns aimed at informing the public about budget processes, and Sh102 million is sought for legislative reforms including amendments to the CoB Act, 2016, which remains unallocated.

Ms. Nyakang’o expressed her frustrations, stating, “Since I joined this office, I have never traveled outside the country. I have never gone anywhere, and this is my sixth year,” highlighting the urgent need for funding. The committee acknowledged that the funding constraints are severely obstructing the CoB’s constitutional duty to oversee the prudent use of public resources at both national and county levels.

Concerns were raised by members of the Senate Finance Committee regarding the drastic cuts to the CoB’s budget, interpreting it as a potential threat to financial accountability and oversight. Senator Bonnie Khalwale underscored the importance of adequately compensating the CoB’s professionals, stating, “We can’t have our young professionals, properly educated and qualified, being paid peanuts when they are supposed to work in this critical office.”

In summary, the Controller of Budget, Margaret Nyakang’o, has highlighted significant funding deficits that threaten essential government oversight functions, particularly the automation of financial processes. The drastic reduction in budget allocations compromises the CoB’s capacity to fulfill its mandate, necessitating urgent action to address these financial challenges. Overall, sustained financial support for the CoB is critical to uphold fiscal accountability and effective public expenditure management.

Original Source: www.capitalfm.co.ke