The Controller of Budget, Margaret Nyakang’o, warns that critical oversight functions are at risk due to severe funding shortfalls. The automation of financial oversight has been particularly affected, with no allocated budget for a crucial information system. The Senate Finance Committee expressed concern that reduced funding could weaken financial accountability in public expenditures.
The Controller of Budget (CoB), Ms. Margaret Nyakang’o, has warned that essential government oversight functions are at risk due to significant funding shortfalls. A pivotal area impacted is the automation of financial oversight processes, which aims to enhance the transparency of public funds management. Despite a budget of KSh 50 million allocated for the Controller of Budget Management Information System (COBMIS), no funding has been received.
During her address to the Senate Finance Committee, Ms. Nyakang’o outlined that her office requested KSh 1.6 billion for the forthcoming financial year. However, this budget was reduced to KSh 777.5 million, eventually resulting in an actual allocation of KSh 613.8 million, creating a shortfall of KSh 579.3 million for crucial operations. Ms. Nyakang’o remarked, “We budgeted KSh 50 million for the automation system, but we received zero funding, so this again is not going to be possible. We can’t talk about automation with zero budget.”
She indicated that although 20 percent of the automation of the withdrawal process had been completed by December 2024, full implementation necessitates collaboration with institutions such as the National Treasury and the Central Bank of Kenya (CBK). The CoB cannot autonomously automate its processes since the budget implementation relies on other entities to digitize their systems as well.
Despite some automation successes in national government requisitions, Ms. Nyakang’o pointed out that the system is only selectively utilized. She emphasized, “Those who are sending us reports must also automate. The National Treasury must automate, and in the same process, the CBK must also automate.”
Furthermore, other essential functions remain underfunded, including a KSh 182.8 million shortfall for personnel emoluments due to a new staff grading structure. There is also a need for KSh 61.1 million for public awareness campaigns about budget processes and KSh 102 million projected for legislative reforms, which have been overlooked in allocations. Ms. Nyakang’o expressed that she had not traveled internationally during her six years in her role, underlining the funding difficulties.
The committee members voiced their concerns regarding the severe budget cuts, cautioning that inadequate funding could jeopardize financial accountability and the oversight of public expenditure. Moreover, questions arose as to whether these reductions were intentional efforts to undermine independent budget scrutiny. Kakamega Senator Bonnie Khalwale stated, “We can’t have our young professionals, properly educated and qualified, being paid peanuts when they are supposed to work in this critical office. Whatever expenses you have with them, share with us so that we can support whatever you have requested.”
In conclusion, the Controller of Budget’s office faces significant operational challenges due to budget cuts, hampering its ability to effectively oversee public funds. Automation of financial processes, essential for transparency and efficiency, is particularly affected by funding shortages. Without adequate financial support, the CoB may struggle to fulfill its mandate of ensuring accountability and prudent resource management across government levels.
Original Source: www.capitalfm.co.ke
