Budget Office Struggles with Loopholes and Funding Constraints

Kenyan Budget Office Faces Hurdles in Execution of Mandate

The Office of the Controller of Budget in Kenya is facing significant challenges in executing its mandate, according to Controller of Budget Margaret Nyakang’o. Appearing before the National Assembly Constitutional Implementation Oversight Committee, Nyakang’o highlighted legal loopholes and budgetary constraints as major stumbling blocks.

One of the key issues is the discriminatory salary structure, which has led to a shortage of qualified staff. Nyakang’o emphasized the need for goodwill and budgetary support to attract and retain skilled employees. The office has developed a new salary structure in consultation with the Directorate of Public Service Management, but it requires approval and implementation.

Another major challenge is the lack of powers granted to the office under the Controller of Budget Act. Nyakang’o stressed the need for amendments to the Act to enable the office to effectively execute its mandate. The current law limits the office’s ability to audit ongoing economic outlook projects, such as the Standard Gauge Railway and the Nairobi Expressway, which have received billions of dollars in funding.

The Controller of Budget also highlighted legal lacuna on succession in the office, citing the failure of the law to recognize a vacancy in the position of the Controller of Budget when the current holder leaves office after the prescribed timeline of eight years.

Nyakang’o also pointed out legal loopholes where the National government and counties void payments after approval, which can lead to pending bills and misdirection of funds. She advocated for the inclusion of a provision in the Act that prohibits the voiding of payments with the accounting officer found culpable in cases where approved payments are voided.

The development of the COB regulations has also been hindered by a delay following annulment by the Senate. The office has since developed a draft incorporating the Senate’s views, but budgetary constraints have prevented public participation.

Nyakang’o’s testimony highlights the need for urgent reforms to address the challenges facing the Office of the Controller of Budget. The office plays a critical role in ensuring transparency and accountability in the management of public funds, and its effective execution is essential for the country’s economic development.

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