Controller of Budget Margaret Nyakang’o has raised concerns regarding discrepancies between approved debt allocations and actual funds withdrawn from the National Treasury, particularly relating to IMF on-lent loans.
Addressing the Public Petitions Committee on July 28, 2026, Nyakang’o revealed that routine monitoring by her office uncovered irregularities in public debt payments. The Office of the Controller of Budget (COB) regularly publishes quarterly and annual budget implementation review reports for both national and county governments, comparing approved budgets against actual public debt servicing expenditures.
These reports serve as an independent verification tool, aiding Parliament and the public in tracking government borrowing, loan repayments, and expenditure patterns. Any anomalies detected are flagged and reported to Parliament in accordance with Article 228(6) of the Constitution.
Debt Monitoring and Analysis
Nyakang’o presented a nine-month analysis of public debt performance, which included both domestic and external loans. The assessment covers principal amounts, interest payments, requisitioned funds, and actual expenditure, enabling the COB to evaluate whether debt spending aligns with approved limits and obligations.
This scrutiny helps oversight bodies identify if debt payments exceed budget provisions or if potential payment difficulties exist.
IMF On-Lent Loan Discrepancy
The Controller of Budget highlighted a significant case involving IMF on-lent loans. While the approved principal amount stood at 10 billion shillings with no interest recorded, Treasury records indicated that 14.74 billion shillings had been requisitioned within the first nine months of the fiscal year.
This withdrawal, amounting to 147% of the approved estimate, was described as a red flag requiring further investigation. Nyakang’o emphasized that spending beyond the owed amount is irregular and that her office has already engaged Treasury officials to clarify the issue.
Commitment to Transparency and Accountability
Nyakang’o stressed that timely reporting allows the COB to detect unusual transactions early and recommend corrective actions when inconsistencies arise.
She also defended the existing debt transparency framework, stating that the COB’s reporting system offers a credible, independent source of data that supports Parliamentary oversight. Any new transparency mechanisms should enhance, not replace, this structure.
The Public Petitions Committee continues to examine public debt management concerns amid ongoing questions about government borrowing and repayment practices. The COB reaffirms its commitment to regularly monitoring and publishing budget implementation reports to promote fiscal accountability.
