Kenya lawmakers seek expanded oversight for Controller of Budget

Kenyan lawmakers are seeking legislative amendments to the Public Finance Management (PFM) Act to grant the Controller of Budget, Dr. Margaret Nyakang'o, expanded oversight powers over government funds and levies. Currently, a legal gap classifies many specialized pools of money as funds and levies rather than budgeted funds, placing them outside the Controller of Budget's direct supervisory mandate.

The National Assembly Committee on Constitutional Implementation Oversight identified 75 funds at the national level and several at the county level that lack independent monitoring. Notable examples include the National Infrastructure Fund, which holds Sh104 billion from Kenya Pipeline Company share sales, and the Affordable Housing Levy, which has collected approximately Sh65 billion.

Officials have warned of significant financial risks due to these loopholes. Treasury Cabinet Secretary John Mbadi noted that the country loses up to Sh2 billion daily to public sector mismanagement, while Auditor-General Nancy Gathungu cautioned that over Sh30 billion in county funds is at risk because these funds operate outside the Integrated Financial Management Information System (IFMIS).