The Office of the Controller of Budget has raised concern over delays by many counties in approving their budgets, warning that the practice violates the Public Finance Management Act.
Controller of Budget Margaret Nyakang’o, speaking at the Murang’a County headquarters on Thursday during the annual monitoring and evaluation visit, said county budgets must be approved by County Assemblies and forwarded by governors by July 1 to allow immediate commencement of budget implementation.
“It is not enough for counties to complain that the National Treasury has not released funds if they do not have an approved budget that enables them to absorb those funds,” she said.
Nyakang’o urged counties to fast-track their budget-making processes to ensure appropriation laws are passed in good time.
She emphasised the need for counties to prioritize development expenditure, noting that this is key to job creation.
While acknowledging improvements in county performance, she said first-quarter of 2025-2026 implementation reports show minimal development spending in many counties.
“Over 20 counties recorded zero development expenditure,” she stated.
She noted that the Office of the Controller of Budget (CoB) monitors budget implementation to identify gaps and advise counties on areas requiring improvement.
Nyakang’o commended Murang’a County for its consistent correspondence and improved budget absorption, noting that her office had provided guidance on reclassifying certain expenditures from recurrent to development spending.
“We are expecting proposals from the governor so that we can review them and provide further advice,” she explained.
On procurement, Nyakang’o defended the electronic procurement system being implemented by the National Treasury, saying efforts are underway to build capacity among users.
However, she acknowledged that the system’s rollout had been challenging due to poor initial implementation and noted that it has, to some extent, slowed development expenditure.
Murang’a Governor Irungu Kang’ata praised the Office of the Controller of Budget for maintaining a strong working relationship with counties.
“She ensures that we adhere to the law. Today, she has guided us on areas where the county can improve,” he said.
The governor noted that Murang’a County needs to address gaps such as consolidating requisitions instead of making multiple smaller ones.
He also highlighted the need to reclassify certain expenditures such as medical insurance for needy families and the provision of porridge in Early Childhood Development and Education (ECDE) centres from recurrent to development spending.
“The medical insurance we provide to needy families is classified as recurrent expenditure, which limits our ability to expand the programme,” he said, adding that such initiatives fall under human capital development and should be treated as development expenditure to increase the number of beneficiaries.
Governor Kang’ata further noted that persistent delays in the disbursement of funds from the Exchequer continue to hinder county operations, despite legal provisions requiring funds to be released to counties by the 14th of every month.
By Purity Mugo
