Margaret Nyakang’o, Controller of Budget, warns that funding shortfalls are crippling essential government oversight functions, particularly financial process automation. With funding requests substantially reduced and major projects underfunded, the CoB’s capability to uphold transparency and accountability is severely compromised, which raises concerns among Senate Finance Committee members regarding potential weakening of financial oversight.
In Nairobi, Controller of Budget, Margaret Nyakang’o, has issued a warning regarding significant funding shortfalls that jeopardize essential government oversight functions. Affected areas include the automation of financial oversight processes, which are vital for enhancing transparency and streamlining public fund management.
The Controller of Budget Management Information System (COBMIS) was allocated a budget of Sh50 million for its development but received no funding. During her testimony before the Senate Finance Committee, Nyakang’o noted that her office had requested Sh1.6 billion for the 2025/26 fiscal year, yet this was reduced to Sh777.5 million in the Budget Policy Statement, with only Sh613.8 million being allocated, resulting in a shortfall of Sh579.3 million.
Nyakang’o emphasized the challenges of automating processes with no budget, 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.” While 20% of withdrawal process automation was realized by December 2024, full implementation relies on cooperation with the National Treasury and the Central Bank of Kenya (CBK).
She pointed out that the CoB cannot achieve complete automation independently and noted that the partial automation of national government requisitions has led to underutilization of the system.
Further underfunded projects include personnel emoluments, which face a Sh182.8 million shortfall for a new staff structure, and Sh61.1 million is needed for public awareness campaigns about budget processes. Additionally, Sh102 million is projected for legislative reforms to enhance oversight, which remain unfunded.
Nyakang’o lamented, “Since I joined this office, I have never traveled outside the country… and this is my sixth year,” highlighting the impact of budgetary constraints. The Senate Finance Committee expressed concern that inadequate funding could significantly weaken financial accountability and public expenditure oversight, with Senator Bonnie Khalwale asserting that qualified professionals should not be underpaid in such critical roles.
Overall, the discussion reveals a pressing need for increased funding to ensure the CoB’s ability to fulfill its constitutional responsibilities and maintain effective oversight across national and county governments.
In summary, funding shortfalls significantly hinder the Controller of Budget’s ability to perform its oversight functions, particularly in automation and personnel investments. As the CoB seeks to enhance transparency and accountability in public fund management, the Senate Finance Committee’s concerns emphasize the necessity for adequate funding to secure effective governance and oversight operations going forward.
Original Source: www.capitalfm.co.ke
