Nyakang’o flags rising mismanagement as counties divert Sh13.2bn in unapproved payments

The Controller of Budget (CoB), Margaret Nyakang’o, has raised concerns about growing financial mismanagement in several Kenyan counties, which she says threatens public funds.

According to Nyakang’o, some counties are paying bills that have not been approved, resulting in a delay in settling the legitimate pending bills that have already been validated.

A recent review by the Parliamentary Budget Office found that 15 counties had altered a total of 15,008 approved transactions, diverting Sh13.2 billion to unapproved expenditures.

Among the counties affected, Kisumu County stands out, with Sh3 billion in pending bills, but Sh2.6 billion was rerouted to unauthorised payments.

Similarly, Kajiado County, under Governor Joseph Ole Lenku, has Sh2.3 billion in pending bills, of which Sh2.2 billion was diverted to unapproved entities.

Other counties, such as Busia, Bomet, and Mombasa, have also been found to misallocate funds.

Busia County reported Sh2.1 billion in altered transactions, while Bomet County diverted Sh2.1 billion. In Mombasa, Sh921 million was misused for non-approved payments.

The Controller of Budget has called for greater oversight of county treasury operations.

“We have applied for viewing rights... because as at now we can only approve payments, but we don’t know what is paid at the end of the transaction,” she said.

The Senate’s Public Accounts Committee, led by Senator Moses Kajwang’, has called for investigations to determine who is responsible for the misuse of funds, urging accountability for those involved in diverting public money.

Last month, Nyakang'o also told the Senate that the government plans to pay all pending bills worth Sh704.59 billion to national and county governments during the 2025/2026 financial year.

She said the pending bills at the national and county governments stand at Sh524.07 billion and Sh180.52 billion, respectively. She said this will mitigate the losses realised by businesses that have provided goods and services to the government in the past.

“The Controller of Budget has continued to enforce compliance among county governments by requiring that they submit pending bills payment plans at the beginning of every financial year in line with the National Treasury circular,” said Nyakango.

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