The Controller of Budget (CoB), Margaret Nyakang'o, has termed as unconstitutional the current budget-making processes.
Appearing before the Constitution Implementation Oversight Committee (CIOC) chaired by Githunguri MP Gathoni Wamuchomba, Nyakang'o, however, said her office has no role in correcting any illegalities.
The committee had highlighted that Kenya’s budget practices may be unconstitutional, particularly noting Article 221 of the Constitution, which mandates transparency in both estimating revenues and expenditures.
“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 expenditures should be presented to Parliament. It is unconstitutional to bypass one or the other,” she said.
Wamuchomba regretted that MPs 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,” she said.
The committee also raised concerns over the finding of independent offices and constitutional commissions.
“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,” Wamuchoma said.
“Only three independent offices; Judiciary, PSC, and TSC, have had budget increases. The rest, including key oversight bodies, have seen reductions,” she added.
Nyakang’o noted that the Pension Fund is suffering from a shortfall of Sh23.47 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,” she said.
A key sticking point noted by the committee was the lack of enforcement powers of the COB. The office’s inability to oversee all aspects of the budget, including grants and receipts, was cited as a major weakness.
“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 emphasised.
