Controller of Budget Margaret Nyakang’o has announced plans to intensify monitoring of county governments’ expenditures and pending bills as they enter the final year before a new administration assumes office.
Addressing the National Assembly’s Public Petitions Committee on July 28, 2026, Nyakang’o emphasized that her office will closely oversee budgeting and spending processes to prevent outgoing governors from leaving financial burdens to their successors.
Challenges in County Financial Compliance
Nyakang’o acknowledged ongoing difficulties with counties adhering to budget guidelines despite repeated instructions from the Controller of Budget (COB) office. She stressed that while stringent conditions are applied before releasing funds, some counties divert resources from their intended purposes after disbursement.
To address this, the COB is collaborating with the Central Bank of Kenya and the National Treasury on a system that will channel payments directly to authorized suppliers, aiming to curb misuse of allocated funds.
Budget Approvals and Pending Bills
The Controller of Budget revealed that no county budget has fully met compliance standards as of late July 2026, noting persistent attempts by some counties to bypass legal procedures during budgeting.
She warned that the COB will enforce strict measures on pending bills this year, given the impending transition to new county administrations. Nyakang’o highlighted the importance of proper budgeting from the start of the financial year to enhance accountability.
Progress and Capacity Building
Despite challenges, Nyakang’o pointed to improvements in county financial management, citing Makueni County’s recent clean audit report as a positive example. Some counties have shown progress from poor to fair financial performance.
She also disclosed efforts to train a new generation of financial officers to strengthen oversight capacity beyond her tenure.
National Debt Concerns
During the committee session, Nyakang’o addressed Kenya’s rising public debt, currently at Ksh12.82 trillion, with 60% domestic and 40% external debt. She noted that 71% of government revenue is absorbed by debt repayments, constraining other expenditures.
Nyakang’o advocated for fiscal consolidation through improved revenue collection and reduced spending to gradually lower borrowing needs.
She further highlighted discrepancies between approved debt allocations and funds requested from the Treasury for IMF on-lent loans, underscoring the need for robust financial controls.
