Kenya: Legal Loopholes,Budgetary Issues Hamper Controller of Budget Mandate

Nairobi — Legal loopholes and budgetary constraints have been highlighted as stumbling blocks for the Office of the Controller of Budget to effectively execute its mandate.

Appearing before the National Assembly Constitutional Implementation Oversight Committee (CIOC), Controller of Budget Margaret Nyakang’o cited discrimination in the salary structure and budget allocation which has derailed the office’s function.

“If you look at our Salary structure, we have been discriminated compared to other similar offices in the country…in consultation with the Directorate of Public Service Management (DPSM) the office has developed a salary structure to attract and retain qualified staff. Goodwill and budgetary support are needed for the efficient implementation,” submitted Nyakang’o.

The Controller of Budget had appeared before the Githunguri MP Gathoni Wamuchomba led committee to disclose details on the challenges facing the independent constitutional office.

Nyakang’o pointed out legislative gaps in the Controller of Budget Act stressing the need to amend the Act to give more powers to the office to effectively execute its mandate.

She expressed that the law has limited his office from auditing ongoing economic outlook projects which include Standard Gauge Railway (SGR) and the Nairobi Expressway which have gobbled billions over the years.

“We have legal loopholes while am supposed to supervise all funds, with the existing position am not allowed to report on economic outlook and revenue focus,” the Controller of Budget said.

She highlighted legal lacuna on succession in the office as the law fails to recognize a vacancy that a vacancy may arise in the position of the Controller of Budget when the COB leaves office after the lapse of the prescribed timeline of 8 years.

“Section 9 (4) of the Act should be amended to allow the COB report on all facets of the budget implementation as envisaged in the constitution. Under the current existing provisions, the COB is barred from reporting on economic developments and outlook including revenue; grants loans forecasts, and receipts,” stated Nyakang’o.

The Controller of Budget also pointed out legal loopholes where the National government and counties void payments after the approval for withdrawal of funds by her office.

Nyakang’o rallied for the inclusion of a provision in the Act that prohibits the voiding of payments with the accounting officer found culpable in the cases where approved payments are voided.

“This will ensure that payments mirror the approval, thus avoiding pending bills and misdirection of funds,” she explained.

The House team further heard that a delay in the development of the COB regulations following annulment by Senate, were a huge hindrance to the office of the COB executing its mandate.

“…The reasons advanced by the Senate for the annulment were that the regulations had not fully captured the comments of the National Treasury received after publication of the regulations ; the penalties proposed in the regulations were not deterent enough; the challenges currently being expressed , such as pending Bills were not addressed,”Nyakang’o said.

“The CoB has since developed the draft regulations incorporating the Senate’s views. However, due to budgetary constraints, the CoB has been unable to undertake public participation,”she added.