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Several governors are staring at financial crisis after their requests for millions of shillings to fund various operations were rejected by the Controller of Budget (CoB).

In total, CoB rejected requests amounting to Sh3.2 billion for various breaches, among them imprudent use of funds, to exceeding the threshold of administrative costs, said Controller Margaret Nyakang’o. 

The requests were made between July 1 last year and January 1, this year.

Dr Nyakang’o, for instance, rejected a Sh243.3 million request from Narok Governor Patrick ole Ntutu for hire of ambulances, questioning why the devolved unit could not purchase the same instead.

She also declined to approve a requisition from the Machakos County Executive, headed by Governor Wavinya Ndeti, of Sh142.6 million for payment of salaries on grounds that no signed schedule of unremitted payroll deductions was attached.

In the case of Samburu County, CoB declined to approve a Sh148.2 million requisition because the devolved unit used the wrong templates and prior claims were not requested separately as pending bills.

Lumpsum query

The report by CoB also indicates that the Siaya County government headed by James Orengo had its request for Sh98.2 million to service operational expenses rejected for failure to explain why the payment to the National Housing Insurance Fund was not processed as a lump sum.

Nyandarua County’s request for Sh94.4 million to fund operational expenses was also rejected due to improper use of interests to pay for certain services.

Wajir County government was also on the receiving end after CoB declined to approve its requisition for Sh75 million to advance imprests to its officers on grounds that the facility was being abused.

 “There were instances where huge amounts of Sh25 million and Sh50 million are indicated as standing imprests of County Public Service Board and County Executive. The imprests are also not issued to officer’s names, as required,” she wrote.

Nyakang’o also rejected a request by  Turkana County Executive amounting to Sh150 million on grounds that the administration costs were more than the three per cent threshold required by regulation 197 (1) (d) of the Public Finance (County government) rules. She told the county government to comply with the law.

A request for Sh12.5 million by Trans Nzoia County to fund Governor George Natembeya’s inauguration ceremony was also rejected. It was termed  “extravagant”.

Nyakang’o argues that irregular diversion of funds meant for salaries to fund operations, mainly statutory and other payroll deductions, was the main reason her office declined to approve most requests.

Misuse of resources goes against Article 201 (d) of the Constitution: “Public money shall be used prudently and responsibly”.

A day after governors accused CoB of constant delays in approving their budgets, Nyakang’o hit back, saying county chiefs make the wrong classification of expenditure, where recurrent expenditure items are factored under the development budget.

“The CoB oversees the implementation of budgets of the national and county governments by authorising withdrawals from public funds under the Constitution,” said Nyakang’o. Article 207 provides for establishing the County Revenue Fund. The county governments’ requests for withdrawal should be in line with the law.”

The CoB further argues that legislation on County Established Funds are inconsistent with Public Finance Management law. “I delay to approve requests because of failure by fund administrators to submit quarterly statements for established county funds,” reads the report.

High bills

According to Nyakang’o, governors have unjustifiably high wage bills, outside the Integrated Payroll and Personnel Database (IPPD). “County governments were required to migrate to the Unified Human Resource Information System by October 2022, in line with the Head of Public Service guidelines,” reads part of CoB’s report.

In some instances, CoB can also delay approving expenditure on foreign travel if the same is not supported by authorisations from the Ministry of Devolution.

In addition, Nyakang’o explains that there are frequent requests for standing imprests for the same offices, instead of replenishments, and without personal responsibility. Standing imprests are given once a year and replenished periodically. Such imprests shall also be issued to an officer in their name, and not to an office.

On Monday, governors listed inadequate funding, non-adherence to the revenue-sharing formula and constant delays in approving expenditures, as the main challenges they face.