NAIROBI, Kenya – Auditor-General Nancy Gathungu has warned that persistent delays in the disbursement of Exchequer funds are significantly undermining service delivery at both national and county levels.
Appearing before the Budget and Appropriations Committee in Parliament on Tuesday, Gathungu said some releases were being made as late as July—after the end of the financial year—leaving little time for ministries and counties to effectively absorb and utilise the funds.
“As a result of late Exchequer releases, both the National Government and County Governments are left with limited time to absorb the funds,” she said.
Gathungu cautioned that the delays not only slow down implementation of government programs but also increase the risk of wastage due to rushed spending.
“There is a risk of inefficient utilisation of resources by entities, leading to wastage of public resources. This disrupts the performance of government programs by slowing down the attainment of development objectives and service delivery to the citizens,” she added.
Delays and Underfunding Crippling Projects
Her remarks echo concerns highlighted in recent audit reports, including stalled projects, avoidable interest payments, and resource mismanagement in various government departments.
The Auditor-General noted that underfunding remains a major hurdle, particularly as the scope of public audits continues to grow with more institutions, such as public secondary schools and technical and vocational training institutes (TVETs), becoming self-accounting.
Push for Budget Reforms
Presenting the Office of the Auditor-General’s 2025/26 budget estimates, Gathungu revealed her office had been allocated Sh8.689 billion—Sh8.359 billion for recurrent expenditure and Sh330 million for development.
This marks a marginal increase of Sh36.8 million from the figures proposed in the 2025 Budget Policy Statement.
She attributed the increase to her appeal to both the Committee and the National Treasury for more resources to match the expanding audit demands.
Gathungu also made a fresh call for the adoption of a Single-Line Budget for her office, arguing that the current system—where funds are channeled through the National Treasury—undermines the institution’s flexibility and independence.
“This will give the office some degree of financial independence and facilitate effective and efficient responses in addressing emerging audit issues, as well as special audit requests from Parliament and County Assemblies,” she said.
Parliamentary Support
Members of the Budget and Appropriations Committee expressed support for the proposed Single-Line Budget, with several legislators pledging to help enhance the independence of the Auditor-General’s office.
The committee also reviewed feedback from recent public hearings across 11 counties on the proposed 2025/26 budget estimates, as it continues to scrutinise spending priorities for the upcoming fiscal year.
