Billions of shillings held in statutory levies and specialised government funds risk misappropriation or even looting due to a lack of oversight and legal safeguards.
Controller of Budget (CoB) Margaret Nyakang’o has sounded the alarm over the public finances as oversight gaps enable the bypassing of the traditional accountability systems. According to Treasury Cabinet Secretary John Mbadi, the country continues to lose up to Sh2 billion daily due to public sector mismanagement.
To seal the loopholes, the National Assembly’s Finance and National Planning Committee is pushing for urgent legislative changes. It wants the Public Finance Management (PFM) Act amended to grant the CoB oversight powers to approve withdrawals and mandate financial reporting to curb the disappearance of public funds.
Auditor-General Nancy Gathungu has warned that more than Sh30 billion held in county public funds is at risk of being misused. She says the funds operate outside the Integrated Financial Management Information System (IFMIS), hence the lack of adequate oversight. This is quite alarming, considering the rampant mismanagement and corruption and blatant theft of public funds in the counties
A parliamentary committee wants the law changed to empower the CoB to report on or provide independent oversight on national and county funds and levies. The Committee on Constitutional Implementation Oversight is alarmed that most of the 75 funds and levies are potential cash cows.
Amending the Public Finance Management (PFM) Act would allow the CoB to provide oversight of the funds and levies. They include the National Infrastructure Fund, which already holds Sh104 billion from the sale of Kenya Pipeline Company’s shares. The Affordable Housing Levy has collected Sh65 billion deducted from Kenyans’ salaries for the construction of low-cost housing units. The loophole that prevents the oversight of the billions held in these funds and levies should be sealed.
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