Controller of Budget Margaret Nyakang’o has warned that her office faces potential operational paralysis due to a severe funding shortfall, with a deficit of Sh850 million in the upcoming financial year.
Speaking before the Senate Finance and Budget Committee on Wednesday, Nyakang’o revealed that the Sh704.25 million allocated to her office for the current financial year has already been depleted, raising concerns about the institution’s ability to execute its mandate effectively.
She further highlighted that some government officials are selectively bypassing the automated system designed to enhance transparency in public spending, undermining accountability measures.
Nyakang’o disclosed that her office had requested Sh1.63 billion for the next financial year but was only allocated Sh777.5 million, leaving a Sh579.3 million shortfall for critical operations such as monitoring, evaluation, report writing, training, and budget implementation forums.
“We have a lean budget and are only surviving because of keeping expenses at the bare minimum,” she told the committee, which is chaired by Mandera Senator Ali Roba.
The Controller of Budget urged senators to intervene and advocate for increased funding, warning that the current allocation would hinder efforts to oversee public finances effectively.
“We have been allocated less than 50 percent of what we asked. Achieving our targets will be tough. We, therefore, are seeking the intervention of the Senate for additional funding of at least Sh579.3 million. We are like a stalled vehicle without the money,” she stated.
Among the most affected areas is career progression, where Sh182.8 million had been requested but was not provided. Other unfunded programs include Sh102 million meant for legislative proposals to strengthen oversight, Sh50 million for system automation, Sh24 million for training, and Sh15.3 million for foreign travel.
Nyakang’o also revealed that in her six-year tenure, she has never traveled outside the country for benchmarking due to financial constraints. She expressed concern over staff retention, noting that seven employees have left in the past six months due to poor remuneration.
Senators Boni Khalwale (Kakamega) and Richard Onyonka (Kisii) pledged to push for increased funding, cautioning that continued budget cuts could undermine oversight of public resources.
“You have been asking for more funding for three years to no avail. We will give you the tools to make your office fight corruption,” Senator Onyonka assured.
Efforts to fully automate the Controller of Budget Management Information System (COBMIS) have also been delayed due to inadequate funding. While the office has achieved 20 percent automation as of December 2024, full implementation remains uncertain since other key institutions, including the National Treasury and the Central Bank of Kenya (CBK), must also digitize their systems.
Nyakang’o stressed the need for a coordinated approach, saying, “Those who are sending us reports must also automate. The National Treasury must automate, and in the same process, the CBK must also automate. The implication here is that we hope by 2025/2026, when all parties come together, we will complete the automation system.”
Senators raised concerns that the persistent underfunding of the Controller of Budget’s office could be a deliberate move to weaken independent oversight. They warned that if the trend continues, financial accountability in government spending could be compromised.
With key oversight functions at risk, lawmakers and civil society groups are expected to mount further pressure on the National Treasury to reconsider the budget allocation and ensure the office has sufficient resources to carry out its constitutional mandate.