Governors tell CoB Nyakan'go to stick to function of fund approvals

Governors have accused the Controller of Budget (CoB) of overstepping her mandate after she released an audit report on 2024/2025 counties’ budget implementation.

The report revealed that some counties spent zero funds on development.

Kakamega Governor Fernandes Barasa said the CoB should stick to her mandate of approving funds released by the National Treasury to counties on time.  

Barasa, who is also chairman of Finance and Economic Planning of the Council of Governors (CoG), said the CoB was usurping the mandate of the Office of Auditor General (OAG).

He said the CoB, Dr Margaret Nyakan’go, should approve funds on time to enable counties to undertake the development she accuses governors of not doing. “I want to call out the CoB, please let other constitutional offices do their role in terms of audit, your work is to approve requests,” said Barasa.

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Barasa said that the CoB office has failed the test of efficiency in terms of approving county budget requisition calling for full automation of the office. “We want you to implement efficiency and automate the approval process so that our people can get development, and for county governments to achieve the purpose of devolution. Therefore, we need approvals to be done on time,” he added.

Barasa said late approvals of counties requisitions occasioned by the CoB despite the treasury releasing funds has led to an accumulation of arrears, which is hampering and threatening to kill devolution.

“We received the money for October three weeks ago, and yet right now the funds are still in the County Revenue Funds in the Central Bank and at the end of this month, the CoB will come up with a report on the spending and yet as governors, we cannot spend the money we have not received,” said Barasa.

Governor Barasa said the CoB is playing politics with tax-payers money when she knows very well that in the first quarter of this financial year, counties delayed receiving money from the national treasury for July, August, and September and governors only received June disbursement in September.

“As governors, we only received the June disbursement in September and it is unfair for the CoB to start playing politics, alleging that governors are spending zero on development,” said Barasa. 

The CoB released a report showing that 10 out of 47 counties spent zero funds on development under the reviewed period. “Analysis of development expenditure as a proportion of the approved annual development budget revealed that 10 county governments did not report any expenditure on development programmes,” reads the report.

The counties, include Johnson Sakaja’s Nairobi, Baringo (Benjamin Cheboi), Elgeyo Marakwet (Wesley Rotich), Kajiado (Joseph Ole Lenku), Kisii (Simba Arati), Lamu (Isa Timamy), Nyandarua (Moses Badilisha), Tana River (Dhadho Godhana), Uasin Gishu (Jonathan Bii Chelilim), and West Pokot (Simon Kachapin).

The report, covering the period from July to September this year, showed that all 47 counties had been allocated a total of Sh576.73 billion, comprising Sh205.33 billion for development expenditure and Sh371.4 billion for recurrent expenditure.

CoG Chair and Wajir Governor Ahmed Abdullahi termed the report as misleading. “Counties received zero exchequer releases from the National Treasury during the quarter. Any development done during that quarter was funded from last full year’s arrears while most counties were forced to go for short-term loans from commercial banks to pay salaries and sustain service delivery,” said Abdullahi.

In the report, Nyakang’o, however, expressed concerns that a majority of the devolved units had opened multiple bank accounts, which not only made it hard for her office to account for but also prone to use as conduits of corruption as they went against the Public Finance Management Act.

Bungoma County government, led by Governor Ken Lusaka, was flagged for operating 300 bank accounts contrary to law, while Baringo County, under Benjamin Cheboi, operates 292 accounts. Of these, 256 are said to be for health facilities only.

Additionally, Machakos County, headed by Governor Wavinya Ndeti has 221 accounts.

Elgeyo Marakwet, headed by Wisley Rotich, was also highlighted for operating 155 commercial bank accounts, Kajiado, led by Joseph Ole Lenku has 50, Cecily Mbarire’s Embu 46, Fernandes Barasa’s Kakamega 44, while Fatuma Achani’s Kwale and Ochillo Ayacko’s Migori are operating 64 and 76 bank accounts respectively.