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Budget Watchdog Faces Sh850 Million Shortfall, Threatening Oversight Role

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NAIROBI, Kenya – The office of the Controller of Budget (CoB) is on the brink of paralysis due to severe funding shortfalls, Controller Margaret Nyakang’o has warned.

Facing a deficit of Sh850 million in the upcoming financial year, Nyakang’o cautioned that her office’s ability to monitor government spending and ensure fiscal accountability is in jeopardy.

Speaking before the Senate Finance and Budget Committee on Wednesday, Nyakang’o revealed that the Sh704.25 million allocated for the current financial year has already been exhausted, forcing her office to operate on minimal resources.

She called on the Senate to intervene, warning that critical oversight functions—such as monitoring, evaluation, training, and budget implementation—would be severely impacted.

“We have a lean budget and are only surviving because of keeping expenses at the bare minimum. Without additional funds, our mandate will be compromised,” Nyakang’o told the committee, chaired by Mandera Senator Ali Roba.

Despite requesting Sh1.63 billion for the next financial year, the CoB was only allocated Sh777.5 million, leaving a Sh579.3 million shortfall for essential programmes.

The budget cuts have also affected career progression, legislative proposals, system automation, and training.

Nyakang’o also raised concerns over selective use of automation in public finance oversight, revealing that some government officers are bypassing systems meant to enhance transparency. Efforts to fully implement the Controller of Budget Management Information System (COBMIS) have stalled due to lack of funding, with only 20 percent automation achieved by December 2024.

“For this system to work, other government agencies must also digitise their processes. The National Treasury and the Central Bank of Kenya must automate to ensure seamless reporting,” she said.

Her remarks prompted concerns from senators, who questioned whether the persistent underfunding was a deliberate attempt to weaken independent oversight on public finances.

Senators Push Back

Senators Boni Khalwale (Kakamega) and Richard Onyonka (Kisii) vowed to fight for increased funding, warning that continued financial constraints could cripple anti-corruption efforts.

“You have been asking for more funding for three years to no avail. We will ensure you have the tools needed to fight corruption,” Onyonka assured.

Nyakang’o further lamented the high staff turnover at her office, with seven employees resigning in the last six months due to poor pay. Additionally, she noted that Sh182.8 million requested for career progression and Sh102 million meant for legislative reforms were not allocated.

In a striking revelation, Nyakang’o disclosed that since assuming office six years ago, she has never traveled abroad to study global best practices due to budget constraints.

With mounting concerns over fiscal transparency, senators now face pressure to push for increased funding and ensure the Controller of Budget’s office remains independent and fully functional. Whether their intervention will bear fruit, however, remains uncertain.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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