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At the centre of the dispute is a growing fallout between Governor Johnson Sakaja’s administration and Members of the County Assembly, with legislators accusing the executive of failing to provide sufficient information on key financial proposals before seeking approval.
According to the Cabinet, the decision follows a comprehensive Government payroll audit that exposed widespread weaknesses in payroll governance across public institutions.
Data contained in the Controller of Budget's quarterly report shows that the number of commercial bank accounts operated by counties increased from 6,386 in December 2025 to 6,585 by the end of March 2026.
Speaking on Radio Generation on Monday, Omtatah alleged that legal provisions within public finance laws had created opportunities for abuse and opened avenues for funds to be handled outside constitutional requirements.
The Controller of Budget’s review for the period ending March 31, 2026 says Kisii County collected only a fraction of its own-source revenue target, recorded low development absorption, and carried significant trade payables and a wage bill above the regulatory ceiling.
The audit showed that the county had accumulated pending bills amounting to Sh1.52 billion. Of this, Sh1.09 billion had remained unpaid for more than one year, while about Sh700 million had stayed unsettled for over three years.
According to court documents, the accused is said to have submitted payment requests for activities that never took place in several locations, including Dubai, Mombasa, Arusha, Nairobi, and within Taita Taveta County
According to the statement, Kenyans currently pay Sh25 per litre through the Road Maintenance Levy Fund, with part of the money already committed to infrastructure financing deals.
Speaking during a Radio Generation interview on Monday, Otieno defended discussions around wealth tax, transparency, and accountability, arguing that Kenya’s taxation challenges are tied to weak public trust, poor service delivery, and limited transparency in public finance management.
Under the proposed Regulation 163 of the Public Finance Management (National Government) Regulations, internal auditors acting in good faith would be protected from punishment linked to their audit work or disclosure of misconduct.
The college’s accounting team admitted that statutory deductions were not remitted on time during part of the 2024/2025 financial year, linking the situation to a drop in government funding that affected its cash flow
In its submission to the National Assembly Public Investments Committee on Education and Governance, the institution acknowledged the audit process and the weight of the issues raised, even as lawmakers pressed for accountability.