NAIROBI, Kenya – A standoff is unfolding between the National Treasury and the Office of the Auditor General after the government rejected a proposal to grant the audit office financial autonomy through a one-line budget.
In a formal submission to Parliament, Treasury Cabinet Secretary John Mbadi—through Principal Secretary Chris Kiptoo—insisted on maintaining an itemised budget for the Auditor General, arguing it is key to transparency and public accountability.
“The current budget structure, where expenditures are clearly delineated, enhances accountability in the use of public resources,” Kiptoo said, dismissing the push for a consolidated budget. “There are no confidential expenditures in the OAG that would warrant such treatment.”
The rejection flies in the face of a unanimous March 2023 resolution by Parliament’s Budget and Appropriations Committee, which directed the Treasury to shift to a single-line budget for the Auditor General starting in the 2025–26 financial year.
The move was intended to bolster the constitutional independence of the audit office and give it flexibility to respond to emerging oversight needs.
Auditor General Nancy Gathungu expressed dismay at the Treasury’s stance, saying the refusal to implement a consolidated budget undermines her office’s effectiveness.
“This office has consistently demonstrated fiscal responsibility,” Gathungu said. “A single-line budget would allow us to swiftly reallocate resources for urgent audits, especially those triggered by Parliament. Instead, we are forced to seek approvals for every shift, which delays critical oversight.”
Gathungu’s office, which has uncovered irregularities worth billions of shillings in national and county governments, has seen its responsibilities increase—now including audits of secondary schools and technical training institutions.
Yet its budget for the new financial year stands at Sh8.69 billion, just Sh36 million higher than last year.
Critics say Treasury’s continued financial control over constitutionally independent offices, including the Auditor General, violates Article 229 of the Constitution, which guarantees the independence of the office.
A recent report by the Africa Centre for Open Governance (Africog) and the Institute of Social Accountability warned that key oversight institutions—including the Auditor General and the Controller of Budget—are facing systematic weakening through budget cuts, bureaucratic bottlenecks, and reprisals for exposing high-level corruption.
“These institutions have become targets for budget reduction, harassment, and reprisals for courageous exposures of misappropriation and mismanagement of public funds,” the report noted.
Civil society organisations have rallied behind the Auditor General, calling for Parliament to assert its authority and enforce its resolution on financial autonomy.
The deepening standoff now sets the stage for a constitutional test on the limits of Treasury control and the independence of oversight bodies critical to public accountability.
