The Controller of Budget (COB) Margaret Nyakang’o on Thursday, July 6, revealed funds amounting to billions that Treasury can withdraw without requiring her approval contrary to popular assumption.
Speaking during an interview with Spice FM, Nyakang’o explained that she has no access to funds raised through the Road Development Levy, Railway Development Levy, and Grants and Loans obtained by President William Ruto’s government.
She explained that while Article 228 of the Constitution gives her sweeping powers to oversee the implementation of the country’s budgets by authorising withdrawals from public funds, there are funds she still has no access to.
Nyakang’o explained that the Public Finance Management (PFM) Act only allowed her control of monies deposited at the Consolidated Fund for use by national and county governments.
The COB explained that according to PFM, the funds from the aforementioned areas were used at the discretion of the Treasury Cabinet Secretary (a position now held by Njuguna Ndung’u) appointed by the President.
“The funds are spent directly with the authority of the National Treasury and the CS has no responsibility to report to me,” she stated.
Pressed to explain if she had a way to know how the money was being spent, she stated, “The information is available on the National Treasury website and I can only access it like every other Kenyan.”
According to the PFM Act (Section 17), the Consolidated Fund is maintained by the National Treasury but in the cases of withdrawal, it must be authorised by the Controller of Budget.
While the PFM Act does not require the Treasury CS to deposit funds raised from grants and loans to the consolidated funds, it shows that the Njuguna-led Ministry can make the deposits at will.
“The Cabinet Secretary shall ensure that the proceeds of any loan raised under this Act are paid into the Consolidated Fund or into any other public fund established by the national government or any of its entities as Cabinet Secretary may determine in accordance with regulations approved by Parliament,” Section 50 of the Act reads.
Nyakang’o explained that her office had made efforts to make sure all funds received by the government passed through the Consolidated Fund.
“The Law states that the COB has receipts of all government expenditure,” she explained while reiterating the need for grants, loans, and levies to be channelled towards the Consolidated Fund.
