Controller of Budget (CoB) Margaret Nyakang'o has revealed that Kenya’s public debt has escalated to Ksh12.82 trillion, with 60% held domestically and 40% externally. She highlighted that 71% of the government’s revenue is currently allocated to debt repayment, leaving only 29% for other operations.
Speaking to the National Assembly’s Public Petitions Committee, Nyakang'o expressed concern over continued borrowing beyond approved limits, warning this trend threatens fiscal sustainability. She described the situation as a vicious cycle where borrowing becomes necessary just to maintain government functions.
Concerns Over County Fund Management
Nyakang'o also criticized some county governments for diverting funds intended for specific projects and supplier payments to unauthorized uses. This misallocation has contributed to the accumulation of pending bills, with many suppliers still unpaid despite funds being released.
"Counties requisition funds for particular purposes, but once approved and disbursed, the money is redirected elsewhere," Nyakang'o said. She added that her office, together with the Central Bank, is developing strategies to address this challenge.
Calls for Greater Transparency and Accountability
The Controller of Budget defended efforts to enhance transparency, noting that expenditure reports are regularly published online for public scrutiny. She acknowledged the need to boost digital engagement to better inform younger Kenyans.
Nyakang'o emphasized that improving public financial management is an ongoing journey and pledged stricter oversight, especially on pending bills, ahead of the next general election. She praised counties like Makueni for financial improvements, citing its clean audit report, while acknowledging others are making gradual progress.
