The Office of the Controller of Budget (OCOB) has announced a major transition in the way government obligations are recorded, moving from the practice of keeping pending bills to formally recognising them as payables.
Speaking in Mombasa before the National Assembly Budgetary Allocation Committee, the Controller of Budget Margaret Nyakang’o said the shift would bring lasting transparency since, once recorded, payables remain permanently in government books until they are settled, reducing chances of obligations being overlooked.
“This change is a big blessing in managing payables because the trail will always be visible,” she explained.
According to Nyakang’o, government payables currently stand at Sh525.8 billion, an increase from Sh516 billion earlier in the year.
However, she acknowledged that not all payables would eventually be cleared, with some potentially becoming insolvent if institutions carry more liabilities than assets.
The transition has also exposed challenges at the county level. Out of 47 counties, 44 have duly uploaded their budgets on IFMIS, while Wajir, Meru and Isiolo were yet to do so, effectively locking them out of expenditure. This situation has led to salary delays in the affected counties.
The COB noted that without approved budgets, spending money including paying workers is illegal.
“I have to help them ensure their budgets are uploaded so they can make payments,” she added.
She noted that several reforms were underway to restore public confidence in government payments.
The Central Bank of Kenya (CBK) has rolled out a new twinning system where approvals are directly linked with payments, minimising delays and mismanagement.
In addition, she said reforms in payroll management have seen the Kenya Revenue Authority (KRA) integrate systems to ensure public sector payrolls are prepared centrally.
“However, many county executives have resisted joining the platform, slowing progress,” she said.
Despite the reforms, Nyakang’o admits the government has not done well in development spending, citing gaps in expenditure planning, domestic borrowing, and resource oversight.
Delayed financing has seen the country incur commitment fees, overdraft charges, and penalties, further straining public resources.
National Assembly Budget and Appropriation Committee Chairman Samuel Atandi said lawmakers were also pushing for the Equalisation Fund Act to be jointly managed by both the Controller of Budget and the National Assembly to strengthen accountability.
“We need much closer collaboration to safeguard resources. Our oversight must also question whether requested expenditures are important and genuine,” said Atandi.
By Chari Suche
