Controller of Budget says her office cannot trace spending of billions collected from Kenyans

Controller of Budget (CoB) Margaret Nyakang’o has raised serious questions over the management and oversight of public funds, revealing that her office does not have clear visibility on how billions collected through government funds and levies are being spent.

The revelations raise a critical question: if money collected from Kenyans is being held outside the National Exchequer, who is accountable for those funds?

It is a damning revelation about the unclear money trail from taxpayers’ pockets, raising questions over the management and oversight of public funds and statutory levies, including funds established under the administration of President William Ruto.

Nyakang’o said her office cannot trace how some of these funds and levies are utilized after the money is collected.

“No visibility at all. Anything called a fund or a levy, we will not see it, are not part of the Consolidated Fund,” she said.

Among the funds and levies created or restructured under President Ruto’s administration are the Affordable Housing Levy Fund, Social Health Insurance Fund, Hustler Fund, National Infrastructure Fund and Uwezo Fund.

Nyakang’o also pointed out that her office cannot fully track collected levies, which include the Affordable Housing Levy, Social Health Insurance, Road Maintenance Levy, Railway Development Levy and Air Passenger Service Levy.

Despite billions of shillings being collected in funds and levies, Nyakang’o says the unchecked money trail and spending undermines the Constitution.

“Many times, I have felt that we have gone out of the safeguards the Constitution has provided. For instance, why don’t they have a reporting mechanism whereby the reports are scrutinized?” Nyakang’o posed.

The Controller of Budget’s concerns raise questions over whether all funds collected from Kenyans are being routed through the National Exchequer as required by law or whether some are being held in other accounts, including commercial banks outside the national government’s central account.

Nyakang’o says the lack of transparency makes it difficult for her office to track the flow of public money and exercise effective oversight over its use.

She also raised concerns over the use of public resources for political activities as the country moves closer to the 2027 General Election.

“As we move towards the election, there is quite some expenditure that you cannot account for. There is also use of public resources, motor vehicles, human resource used for partisan events, so we are likely to record higher spending than before,” she noted.

The revelations by the Controller of Budget leave an unanswered question on who is the custodian of billions of shillings of public funds.