The Controller of Budget, Margaret Nyakang’o, warns that severe funding shortfalls threaten essential government oversight functions. With no funds for key automation projects, the CoB cannot implement necessary improvements to financial transparency. Budget requests were drastically cut, leaving significant operational shortfalls that undermine the CoB’s capability to manage public resources effectively.
The Controller of Budget (CoB), Margaret Nyakang’o, recently highlighted severe funding shortfalls jeopardizing critical government oversight functions. Key among these is the automation of financial oversight processes designed to enhance transparency in public fund management. The CoB initially budgeted Sh50 million for the development of the Controller of Budget Management Information System (COBMIS), yet received no funding for this crucial initiative.
During a session with the Senate Finance Committee, Nyakang’o indicated that her office requested Sh1.6 billion for the 2025/26 fiscal year, but this was reduced to Sh777.5 million in the Budget Policy Statement. Currently, allocations stand at Sh613.8 million, which leaves a significant shortfall of Sh579.3 million necessary for essential operations.
Nyakang’o emphasized the need for adequate budgetary support, stating, “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.” Despite achieving 20% progress in automating withdrawal processes by December 2024, full implementation requires collaboration with other vital institutions, including the National Treasury and the Central Bank of Kenya (CBK).
The CoB’s ability to manage automation is hindered without the participation of these entities. “Those who are sending us reports must also automate. The National Treasury must automate, and in the same process, the CBK must also automate,” Nyakang’o remarked, hoping for collective action to complete automation by 2025/2026.
Additionally, the CoB faces funding challenges concerning other essential operations. A shortfall of Sh182.8 million exists for the new staff grading structure, alongside a need for Sh61.1 million for public awareness campaigns regarding budget processes. Legislative reforms, including necessary amendments to the CoB Act of 2016, require Sh102 million, which has also not been allocated.
Nyakang’o’s tenure has seen no travel abroad, illustrating the funding constraints her office endures. The lack of resources seriously impedes the CoB’s constitutional mandate to oversee public resource utilization. Senate Finance Committee members voiced concerns about the drastic budget cuts, with worries that these reductions may weaken financial accountability and oversight of public expenditures.
Senator Bonnie Khalwale voiced skepticism, stating, “Whatever expenses you have with them, share with us so that we can support whatever you have requested,” stressing the importance of adequately compensating skilled professionals in this essential office.
The inability to fund the CoB adequately poses a significant risk to governmental oversight functions and financial accountability. With essential automation stalled and operations underfunded, the CoB cannot fulfill its constitutional mandate efficiently. Continued budgetary constraints jeopardize not only the operational capacity of the CoB but also public trust in financial management.
Original Source: www.capitalfm.co.ke
