Hard truths. Bold Insights. Real talk.
Ledama Olekina argued that the Controller of Budget's recent report on county governments' local and foreign travel expenditure risks being viewed as a distraction instead of serving as a meaningful accountability mechanism.
A report by the Senate County Public Accounts Committee has highlighted gaps in the management of debts owed by counties, pointing to what it says is a widening financial pressure point in devolved units.
The shortfall includes Sh33.2 billion owed for December and Sh35.27 billion for January, following a late November allocation released only last month.
According to the report, more than Sh10 billion budgeted by counties under the second marginalisation policy has not yet been released. Nyakang’o highlighted that the delays are hitting ten counties hardest: Turkana, West Pokot, Wajir, Narok, Samburu, Mandera, Kilifi, Garissa, Baringo, and Marsabit.
In her November 2025 National Government Budget Implementation Review Report covering the 2025/26 financial year, Nyakang’o pointed to weak preparation and planning by the agencies in charge as the main reason for the delays.
The Controller of Budget highlighted that many counties have not followed their payment schedules, violating regulations that require trade payables to be prioritized. Regulation 55(2)(b) of the Public Finance Management (County Governments) Regulations, 2015, stipulates that all eligible pending bills must be treated as a first charge in county budgets, including for the 2025-26 financial year.
The report shows that several counties continue to operate funds beyond their legal life, exposing them to audits and potential legal action. Section 116 of the Public Finance Management (PFM) Act, 2012, allows counties to set up public funds with approval from the county executive committee and county assembly. According to Regulation 197(1)(i) of the PFM (County Governments) Regulations, 2015, a fund can only last ten years unless formally extended by the county assembly. If not renewed, the funds automatically expire.
This follows the gazettement of the County Public Finance Laws (Amendment) Act 2025, which gives her office the authority to view transactions across all county accounts. The change will allow real-time monitoring of cash inflows and outflows, making it easier to detect irregular financial activities.
Nairobi emerged as the highest beneficiary with Sh1,713,370,272, reflecting its dense population and economic influence. Nakuru came second with Sh1,156,411,813, showing its growing commercial and agricultural profile.
The latest Controller of Budget report shows that hospitals collected Sh24.59 billion in Facility Improvement Financing (FIF), surpassing the annual forecast of Sh20.77 billion.
The latest findings by Controller of Budget Margaret Nyakang’o show that as of June 30, 2025, counties owed a total of Sh176.90 billion in pending bills.
In her 2024–2025 full-year report, Margaret Nyakang'o disclosed that as of June 30, 2025, counties had 5,476 commercial bank accounts that have not been approved by her office, as required under the Public Finance Management Act. In her 2024–2025 full-year report, Margaret Nyakango disclosed that as of June 30, 2025, counties had 5,476 commercial bank accounts that have not been approved by her office, as required under the Public Finance Management Act.