NAIROBI, Kenya – Kenya’s top public finance watchdogs are operating in name only, crippled by legal loopholes, chronic underfunding, and deliberate disregard from the very government entities they are meant to regulate, a new parliamentary report has found.
The Constitutional Implementation Oversight Committee, in a report tabled in the National Assembly, paints a damning picture of the state of the Controller of Budget, Auditor General, and Commission on Revenue Allocation.
It concludes that these constitutional offices have been systematically undermined, with their recommendations often ignored and their operations hobbled by outdated laws and lack of enforcement powers.
“The persistent culture of non-cooperation from regulated entities actively undermines oversight functions of the constitutional commissions and independent offices,” the committee stated.
Controller of Budget: Sh63 Billion Levy Left Unchecked
Among the most alarming revelations is the Controller of Budget’s inability to oversee the Sh63 billion Housing Levy Fund, due to its classification as a levy rather than a budgeted fund.
“This legal loophole prevents any independent oversight of the estimated Sh63 billion collected annually,” the report notes.
The Controller’s office also lacks the power to enforce compliance on key fiscal matters, including:
- Counties operating multiple illegal bank accounts;
- The settlement of Sh538 billion in pending bills, where the Controller only verifies bills but has no role in disbursements;
- Absence of punitive measures for entities that disregard financial regulations.
Moreover, the current law bars the office from reporting on economic development trends or fiscal projections, limiting its ability to provide comprehensive financial oversight.
The committee is now calling for urgent amendments to the Controller of Budget Act (Cap 429) to expand its mandate and introduce enforcement mechanisms.
Auditor General: High Workload, Low Budget
The Office of the Auditor General faces a similar crisis. It now audits more than 12,700 entities, up from 1,192 in 2016/17, but continues to operate with only 0.20% of the national budget — less than peer institutions in Uganda and South Africa.
“This level of financial allocation ranks the office among the weakest in the region in terms of financial autonomy,” the report says.
Additionally, Parliament has delayed the passage of critical laws, including the Public Audit (Amendment) Bill, 2024, which would give the Auditor General full control over its own budget and establish a dedicated fund to reduce operational delays.
The committee also criticized Parliament for failing to prioritize performance audit reports, citing only two — on flood response (2023) and services for persons with disabilities (2021) — that have been debated.
CRA: No Power, No Penalties
The Commission on Revenue Allocation (CRA), responsible for advising on equitable sharing of national revenue, is similarly hamstrung by its lack of enforcement power.
While the CRA plays a key role in determining how resources are shared across Kenya’s 47 counties, it has no authority to ensure its proposals are followed, making its role largely advisory.
A Systemic Failure
The committee’s findings reflect a broader structural failure in Kenya’s governance system — where institutions created to enforce transparency and accountability are rendered ineffective by design.
To address the crisis, MPs are pushing for:
- Legal reforms to grant enforcement powers to oversight offices;
- A budget increase for the Auditor General to at least 0.5% of national revenue;
- Urgent debate and passage of pending audit-related legislation;
- Strengthening financial and operational autonomy for all oversight bodies.
Without these reforms, the report warns, the constitutional promise of accountability and transparency in the use of public resources will remain elusive.
