‪Controller of Budget Decries Underfunding Of Her Office, Warns Of Shutdown

The Controller of Budget (CoB), Margaret Nyakang’o, has warned that critical government oversight functions risk being crippled due to severe funding shortfalls.

One of the most affected areas is the automation of financial oversight processes, a crucial step aimed at streamlining exchequer approvals and improving transparency in public fund management.

The CoB had budgeted Sh50 million for the development and deployment of the Controller of Budget Management Information System (COBMIS) but received no funding.

Speaking before the Senate Finance Committee, Nyakang’o highlighted that her office had requested Sh1.6 billion for the 2025/26 financial year, but the amount was slashed to Sh777.5 million in the Budget Policy Statement.

Out of this, only Sh613.8 million has been allocated, leaving a shortfall of Sh579.3 million for key operations.

“We budgeted Sh50 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 stated.

She noted that while 20 per cent of the withdrawal process automation had been achieved by December 2024, full implementation requires collaboration with multiple institutions, including the National Treasury and the Central Bank of Kenya (CBK).

She emphasized that the CoB cannot automate its processes independently, as other entities involved in budget implementation must also digitize their systems.

Despite the partial automation of national government requisitions, she revealed that the system remains underutilized and is only applied selectively.

“Those who are sending us reports must also automate. The National Treasury must automate, and in the same process, the CBK must also automate. The implication here is that we hope by 2025/2026, when all parties come together, we will complete the automation system,” Nyakang’o noted.

Underfunded Projects

Beyond automation, other critical functions of the CoB remain underfunded, including personnel emoluments with a Sh182.8 million shortfall for a new staff grading structure.

CoB also requires Sh61.1 million for public awareness campaigns on budget processes.

It also projects Sh102 million for legislatiev reforms including amendments to the CoB Act, 2016, and the development of regulations to strengthen oversight, which has not been allocated.

“Since I joined this office, I have never traveled outside the country. I have never gone anywhere, and this is my sixth year,” Nyakang’o said, stressing the funding hitch.

The committee heard that the lack of funds has severely hindered the CoB’s ability to execute its constitutional mandate, particularly in ensuring prudent use of public resources across national and county governments.

Members of the Senate Finance Committee expressed concern over the drastic budget cuts, warning that failure to fund the CoB adequately could weaken financial accountability and public expenditure oversight.

Senators questioned whether the reduced allocations were deliberate attempts to stifle independent budget scrutiny.

“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,” said Kakamega Senator Bonnie Khalwale.