The Controller of Budget, Margaret Nyakang'o, has raised serious concerns over financial mismanagement within county governments, highlighting a troubling pattern of fund diversion that is exacerbating Kenya's mounting pending bills crisis.

Appearing before Parliament, Nyakang'o revealed that many counties request funds earmarked for specific expenditures, receive approval and the disbursed money, but then redirect these resources to unrelated expenses. This practice has been identified as a key factor driving the current backlog of pending bills, which now stands at a staggering Ksh 235.6 billion.

These unpaid debts are owed to businesses, contractors, and suppliers whose payments are crucial for sustaining jobs, livelihoods, and economic growth. Instead, the funds remain trapped within government bureaucracy, contributing to a vicious cycle where suppliers remain unpaid despite counties having received the allocated money.

Accountability and Oversight Failures

Nyakang'o emphasized that this issue transcends poor financial management and amounts to a breach of public trust. She reminded governors that public funds are not a personal bank account and that budget approvals carry legal and moral obligations to be used as intended.

Moreover, the Controller of Budget called on Members of County Assemblies (MCAs) to fulfill their constitutional roles by scrutinizing expenditures and holding county executives accountable. The continued rise in pending bills signals a failure in oversight, with some MCAs accused of acting as political supporters rather than watchdogs of public resources.

Economic Implications

Delayed payments to suppliers have a ripple effect on the broader economy. Unpaid businesses face cash flow challenges, leading to delayed salaries, threatened livelihoods, and increased non-performing loans in the banking sector. The withholding or diversion of funds restricts economic activity and concentrates resources in a few hands, undermining the financial ecosystem at the county level.

Nyakang'o urged county governments to honor the purpose of allocated funds and for MCAs to actively exercise their oversight responsibilities. Timely payments are essential to stimulate economic circulation, support local markets, and maintain trust in public financial management.

“Kenyans deserve county governments that keep their word not just during campaigns, but in managing every taxpayer shilling,” Nyakang'o concluded.