NAIROBI, Kenya – Controller of Budget Margaret Nyakang’o has called for tough financial sanctions against county governments and public institutions trapped in prolonged leadership disputes, warning that persistent wrangles are paralyzing operations and putting public funds at risk.
Appearing before the Senate Justice and Legal Affairs Committee on Thursday, Nyakang’o urged Treasury Cabinet Secretary John Mbadi to invoke powers under the Public Finance Management (PFM) Act and suspend funding to entities whose internal conflicts persist for more than three months.
“The Cabinet Secretary for the National Treasury can invoke his powers under the PFM Act to stop funding to entities with wrangles that extend beyond three months,” she said, emphasizing the urgent need to protect public resources from misuse during institutional crises.
Legal Backing for Funding Suspension
Under Article 225 of the Constitution, the Finance Cabinet Secretary is authorized to halt the transfer of funds to state organs or public entities, with parliamentary approval, in cases of serious or persistent violations of the law.
However, any such suspension must not exceed 50 per cent of the allocated funds and can only last a maximum of 60 days.
Nyakang’o also urged Parliament to pass legislation that provides clear guidelines on how financial operations should be handled in public institutions during such breakdowns.
“The Controller of Budget is concerned about the accountability of public funds in entities experiencing leadership and operational crises,” she told lawmakers.
Case in Point: Nyamira County Assembly
Nyakang’o’s remarks were prompted by an ongoing standoff in Nyamira County Assembly, where two rival factions—each with its own speaker, clerk, and staff—have set up parallel assemblies, leading to a total breakdown in legislative functions.
One group operates from the official county assembly precincts, while the other holds its sittings at a gazetted ward office.
A Senate mediation report paints a grim picture of administrative paralysis, highlighting the contested leadership structures and breakdown of essential governance systems.
“The contestation of the office of the speaker has the dire consequence of affecting all other county assembly service structures. It is imperative to determine who the legitimate speaker is,” Nyakang’o said.
She added that her office has been receiving communication from both factions, making it impossible to determine who has legitimate authority to approve spending and oversee county affairs.
Senate Backs Tougher Action
The Senate committee said the deadlock in Nyamira has not only derailed service delivery but also severely compromised accountability.
“This ongoing stalemate undermines public trust and justifies the call for temporary financial sanctions against such dysfunctional entities,” the committee noted.
Nyakang’o’s call marks a significant shift in how fiscal discipline could be enforced across devolved units and public institutions, especially in the face of rising concern over misuse of funds, governance failures, and political infighting.
If acted upon, the proposal could set a new precedent in holding counties and public entities accountable—not just through audits and reports, but through real-time financial consequences.
