Controller of Budget (COB) Margaret Nyakang’o was on Thursday, September 19, 2024, put to task by Members of Parliament to explain the country’s budget-making process.

Nyakang’o who faced the Githunguri MP Gathoni Wamuchomba-led Constitution Implementation Oversight Committee (CIOC) was questioned on irregularities in Kenya’s budget practices.

The committee based its queries on Article 221 of the Constitution, which mandates transparency in both revenue estimates and expenditures, a requirement that appears to have been bypassed.

Nyakang’o acknowledged the issue but pointed out that her office had no role in correcting the discrepancies.

“My office has flagged this error in the budget-making process, where revenue estimates are not clearly presented, yet according to the Constitution, both the revenue estimates and expenditure should be presented to Parliament. It is unconstitutional to bypass one or the other,” she told the MPs.

Parliament on governance

According to Wamuchomba, there were flaws in how the budget-making process was being implemented.

The former Kiambu county woman representative stated that the revelation pointed to a deeper governance issue that has seen public financial oversight weaken, putting Kenya’s financial management at risk.

“We have been running an unconstitutional budget-making process. We’re only seeing expenditures, but where are the revenue estimates? This deviation from the Constitution is unacceptable,” Wamuchomba said.

Independence of offices

The independence of the office of the Controller of Budget was also questioned.

The MPs observed that despite their constitutional mandate, many of these offices, including the Ethics and Anti-Corruption Commission (EACC) and National Gender and Equality Commission (NGEC) among others, have faced crippling financial challenges.

“Only three independent offices; Judiciary, PSC, and TSC, have had budget increases. The rest, including key oversight bodies, have seen reductions,” Wamuchomba questioned.

Committee Members further noted that the deficit has also been evident in discussions surrounding pensioners, as Nyakang’o informed members that the pension fund is suffering from a shortfall of Ksh23 billion, in part due to public debt.

“We can’t afford to underfund pensioners. Their entitlements are being affected by the increasing public debt, but my office doesn’t have the mandate to control or rectify this,” Nyakang’o stated.

She further explained that the mandate of the COB was weakened by the lack of enforcement of powers of the COB, and the office’s inability to oversee all aspects of the budget, including grants and receipts.

“We are barred from reporting on many budget aspects, including economic development, grants, and loans. Section 94 of the COB Act needs to be amended,” Nyakang’o emphasized.