The Controller of Budget Margaret Nyakang’o (left) and Treasury Cabinet Secretary John Mbadi.
The office of the Controller of Budget has come under sharp criticism over its procedures of approving requisitions by counties, a matter governors claim has delayed release of funds.
Although the county chiefs blamed the National Treasury and Planning for the delayed releases from exchequer, the Cabinet Secretary (CS) John Mbadi took on the Controller of Budget (CoB) Margaret Nyakang’o.
The CS took issue with the manner her office operates in authorizing the disbursement of funds as per the counties’ budget requests by having the accounting officers travel to Nairobi county yet the government has been pushing for digitization.
The CS faulted the office, saying it is engaging in rent seeking instead of guiding the counties towards prudent use of taxpayers’ money by ensuring they practice financial discipline in undertaking their assigned functions under Schedule Four.
In a consultative meeting with governors in Naivasha, Nakuru county during the quarterly high – level consultative meeting with the Council of Governors (CoG) Health Committee, CS Mbadi said it was unfair that county officials in the finance department had to travel from as far as Turkana county to get their monies cleared, yet that would be an assignment done on phone.
“I wish the controller of budget was here, I have a problem with her office. I don’t mince my words. I say them as they are. Once we transfer money to counties, let that money reach the counties, there should be no bottlenecks,” Mr Mbadi said.
The CS attended the meeting at a time the government has commenced the rollout of the Social Health Authority (SHA) replacing the National Hospital Insurance Fund (NHIF) currently facing hiccups.
Health is a devolved function and therefore the meeting’s theme: Towards improving coordination, cooperation, collaboration, partnerships and information sharing for delivery of Universal Health Care Coverage (UHC).
"There is no reason governors that your officers are always in Nairobi to clear with your office CoB…that is rent seeking and it should stop,” said the CS, in responding to governors concerns that delayed disbursed of funds is affecting provision of critical services in the counties.
Mr Mbadi who was responding to queries from the governors on late disbursements of funds as well as a conversation on increasing county allocations.
The county chiefs also accused the CoB of introducing unnecessary bottlenecks in disbursement process.
Mr Mbadi said there should be a working system that does not have artificial human interference so as to ensure disbursement of funds immediately.
“We have always wanted a forum where I can tell her publicly, she must reign in on her officers and that does not mean I am attacking her, I am criticizing her. She is also open to criticize me,” said the CS.
Mr Mbadi also weighed in on the diminished allocations to counties, holding that the National Government could only afford Sh380billion as opposed to the Sh400billion counties have asked for.
The issue has however caused friction between the two levels of Government, with county governments demanding nothing less than Sh400billion more so with the rollout of Social Health Insurance.
“We cannot afford anything more than Sh380billion,” stated Mbadi, in regards to the slash in the counties budget as the collapsed of the Finance Bill, 2024.
However, governor Stephen sang (Nandi) and his Baringo counterpart Benjamin Cheboi insisting on the counties getting their rightful share of Sh400 in the shareable revenue among the two levels of government.
“We will not accept anything less than Sh400billion and yet, you are adding us more roles,” noted governor Sang.
Governor Cheboi in registering their facing cash crunch frustrations stated, “If there is no money, I would rather return the county to the National Government.”
The CS also committed to disbursing county funds on time in an effort to keep the devolved units afloat.
Currently, counties have gone over three months without allocations yet National Treasury is supposed to release the monthly tranches by the 15th of every month.
In the heat of the moment, CS Mbadi turned his guns on advisors at both levels of government, saying there was a habit of bringing on board more and more advisors that were not necessary in the discharge of duties.
He laments that advisors are paid monies that could otherwise be put into other uses.
“Many advisors are unnecessary, useless and should be disbanded,” said the CS. After the Gen Z anti-government protests against the Finance Bill in June, the president announced that government advisors should be reduced, this means the CS concerns, points to lack of implementation on the directive.
