MPs demand automation to speed up county fund approval process

Lawmakers have decried the delays in the approval of funds to counties by the Office of the Controller of Budget, calling for the automation of the approval process to enhance the timely flow of funds to devolved units.

The delay, they argue, hampers the execution of development projects and increases the accumulation of pending bills in counties.

Vihiga Senator Godfrey Osotsi expressed concern over the sluggish processing of budget approvals, which has left billions of shillings from the National Treasury idle in County Revenue Fund (CRF) accounts at the Central Bank of Kenya.

He criticised the reliance on manual systems, which not only slow down approvals but also create opportunities for corruption.

“There is a growing concern in counties over the delays, with some governors reading mischief as disbursements continue to lag,” Osotsi said.

He urged Controller of Budget Margaret Nyakang’o to fast-track the approval process, proposing that digital documents could be used to expedite the procedure.

Osotsi also pointed out the inefficiency of requiring all 47 County Executive Committee members for Finance to physically travel to Nairobi to submit requisitions.

"Instead of counties sending their executive members to pursue disbursements for almost two weeks, the Controller of Budget could use digital documents to fast-track the process," he added.

Further amplifying the calls for reform, Trans Nzoia Senator Allan Chesang highlighted the findings of a fact-finding tour by the Committee on Information, Communication and Technology.

The tour identified delays and inefficiencies within the Controller of Budget’s office as a major bottleneck to devolution’s success. Chesang also raised concerns over allegations that some officials in Nyakang’o’s office were engaging in gatekeeping practices, withholding approvals unless illicit payments were made.

"The committee should explain why county secretaries are required to manually deliver physical documents to the Office of the Controller of Budget in Nairobi despite the presence of county representatives from the said office," Chesang said.

Senators’ concerns have echoed complaints by governors, who accused Nyakang’o of deliberately obstructing the timely flow of funds to counties.

Kakamega Governor Fernandes Barasa criticised the prolonged delays in approving requisitions, claiming that they were stalling the implementation of vital projects.

“Counties are struggling to access the funds because the Controller of Budget is taking too long to approve the requisitions made by Finance ministers from the 47 counties,” Barasa said.

"We are not begging for approval of our requests, we are sounding the last warning to Nyakang’o. We are going to call for the dissolution of that office to get new officers ready to protect devolution."

Kisii Governor Simba Arati also appealed for quicker action, urging Nyakang’o to release funds on time to prevent further hardship in counties.

The issue of idle funds was highlighted by National Treasury Cabinet Secretary John Mbadi, who revealed that up to Sh42.38 billion was sitting unclaimed in the CRF account.

This, he said, was happening even as some counties faced financial crises that threatened their operations.

"The money is there in the account. Once the money is transferred to the CRF account, it should go to counties to pay for salaries and also go into development expenditure,” Mbadi said.

“We need to have a smooth absorption because the last thing you would want to see are balances accumulating in idle accounts as it adds no value to the economy.”

Nyakang’o, however, defended her office, stating that counties themselves were often to blame for delays. She cited misclassification of expenditure, improper use of funds, and failure to comply with fiscal laws as key factors contributing to the hold-ups.

“Governors breaking fiscal laws, including imprudent use of funds such as flouting the law on deduction of taxes and payment of pending bills, as well as exceeding the threshold of administrative costs contribute to the delays,” Nyakang’o said.

Kericho Senator Aaron Cheruiyot, who had a conversation with Nyakang’o, urged her to address the issues raised.

Cheruiyot acknowledged that delays were caused not only by her office but also by the Central Bank and other institutions. He expressed hope that a meeting between governors, senators, and Nyakang’o could address these challenges and improve the devolution process.

“It is my sincere hope that before we return from recess, the Speaker will convince us into a meeting and a mediation among the Council of Governors, the Senate, and the Controller of Budget with regards to the success of devolution,” Cheruiyot said.

"That meeting is long overdue because we have serious issues that need to be addressed."