Kenya Controller of Budget warns of untraceable billions in state levies

Kenya’s Controller of Budget, Dr. Margaret Nyakang'o, has warned that billions of shillings collected through state-backed levies and funds are currently untraceable and unauditable by her office. Nyakang'o stated that because these monies—including the Housing, SHA, Petroleum, and Railway levies, as well as the Hustler and Uwezo funds—are held in independent accounts rather than the Consolidated Fund, they bypass core constitutional safeguards and regulatory oversight.

Under Article 228 of the Constitution, the Controller of Budget is mandated to oversee withdrawals from the central National Exchequer. However, specialized revenue streams like the 5 trillion shilling National Infrastructure Fund and the proposed Sovereign Wealth Fund operate under independent legal frameworks. This structure allows for lump-sum transfers to agencies, which Nyakang'o noted creates an unmonitorable money trail once funds leave the central exchequer.

Former Law Society of Kenya president Faith Odhiambo echoed these concerns, citing potential violations of Article 206(1), which requires money raised by the national government to be paid into the Consolidated Fund unless expressly authorized by law. Odhiambo argued that such arrangements could create parallel financial structures that limit Parliament’s ability to scrutinize public expenditure and weaken the accountability mechanisms established by the 2010 Constitution.