Controller of Budget: South Rift counties opaque with accounts

Controller of Budget Margaret Nyakang’o. [File, Standard]

Controller of Budget Margaret Nyakang’o has faulted the eight South Rift counties for failing to adhere to the law in their financial transactions.

In her 2023/2024 financial report released in August, Dr Nyakang’o observed that Nakuru, Narok, Nyandarua, Baringo, Bomet, Kericho, Laikipia, and Kajiado counties, have continued to maintain bloated staff establishments, operate illegal bank accounts in commercial banks and have huge pending bills.

She also noted that the counties were still using manual payrolls to pay some of the employees’ salaries in contravention of the law, while at the same time failing to meet their set annual revenue targets from their local revenue sources.

Nyakang’o also convicted them of spending less than the legally stipulated 30 per cent of the total approved budget on development, denying residents vital services.

In Nakuru, the report faulted Governor Susan Kihika’s administration for the low absorption of development funds.

The report indicated that Nakuru only spent Sh4.45 billion out of the Sh9.68 billion budget for development programmes, which accounted for 46 per cent of the approved development budget.

The county also collected Sh3.32 billion from its local source revenue against the annual target of Sh4.1 billion, representing 81 per cent of the set target.

As at the end of June, this year, the report added, Nakuru had pending bills amounting to Sh1 billion.

The devolved unit was also faulted for paying a total of Sh582.61 million in the form of workers’ salaries through the manual payroll.

The CoB cautioned that the manual payroll was prone to abuse and may lead to the loss of public funds where there is a lack of proper control.

Nakuru was also censured for operating 12 bank accounts in commercial banks with the controller of budget directing that accounts be opened at the Central Bank of Kenya.

Narok County, under Governor Patrick Ole Ntutu, failed to clear Sh764.64 million pending bills  as of June 30 this year, an amount Nyakang’o termed as being too high.

Ntutu’s administration was also censured for paying a sum of Sh507.50 million in form of employee salaries through manual payroll.

The devolved unit was also faulted for spending a high sum of Sh314.57 million on domestic travel. 

The controller of budget further recommended the closure of 27 bank accounts being operated in various commercial banks in contravention of the law.

In Baringo County, the report revealed that Governor Benjamin Cheboi’s administration was operating 283 bank accounts in commercial banks to run its operations contrary to the law which requires accounts be maintained by the Central Bank of Kenya.

The bank accounts were for mainly county health facilities and dispensaries and various departmental office operations and activities.

The report further faults Cheboi’s administration for incurring expenditure beyond exchequer issues and diverting some of the funds.

During the period under review, Baringo County collected a total of Sh378.20 million from its revenue streams, which was an increase of 20.7 per cent compared to the Sh313.35 million realised in the previous year.

By the end of the financial year, the report noted, the county government had accumulated pending bills amounting to Sh368.23 million while the county assembly reported outstanding pending bills of Sh8.87 million.

In Nyandarua County, Governor Moses Kiarie’s administration missed the local revenue target by almost half, collecting Sh515.74 million against a set target of Sh1.23 billion.

The county was also censured for paying Sh132.29 in form of employee salaries through manual payroll while at the same time spending 21.9 per cent of total county expenditure on development, an amount that was below the 30 per cent threshold provided by the law.

The budget review report indicated that the county government spent 40.6 per cent of its approved budget on paying wages, an amount that was above the 35 per cent provided by the law.

The budget controller added that Nyandarua had also spent a high sum of Sh314.36 million on domestic travel.

Nyakang’o further directed the devolved unit to close 88 bank accounts it was operating in commercial banks.

Samburu County violated the law by processing Sh319.65 million in form of workers’ salaries through manual payroll.

The controller of budget directed the devolved unit to reduce the expenditure on salary payment from the high of 42.2 per cent of the approved county budget to the 35 per cent provided by the law.

Laikipia County, the report stated, managed to collect Sh499.99 million for its own source revenue, which was below the annual target of Sh842.5 million, representing 59.3 percent of the set target.

The devolved unit, the budget boss added, paid a sum of Sh528.21 million in form of workers salary through manual payroll, contrary to the law.

Nyakang’o further expressed concern over the high wage bill which was above the 35 per cent threshold set by law.

She also directed Governor Lati Lelelit’s administration to prioritise the payment of the Sh1.65 billion outstanding in form of pending bills as at June30, 2024.

Kajiado County missed its annual revenue target, only managing to collect Sh1.05 billion from its revenue sources out the target of Sh1.87 billion, representing 56.1 per cent.

The budget boss said Governor Joseph Lenku’s administration failed to submit expenditure reports on operations of the Liquor Fund, Women Empowerment Fund, and MCAs Car and Mortgage Fund to her office.

The report further directed the county government to clear the sum of Sh2.35 billion outstanding as pending bills on June 30, 2024.

In Kericho County, Governor Erick Mutai’s administration has been faulted for failing to submit reports on the operation of various special public funds to the controller of the budget.

The funds whose reports were not availed to the budget boss included the Kericho County Emergency Fund, the Kericho County Executive Staff Mortgage Fund, Kericho County Executive Car Loan, MCAs Car and Mortgage Fund, and Car Loans and Mortgage for Staff.

In the neighboring Bomet County, the budget faulted Governor Hilary Barchok’s administration for spending 47.2 percent of the total budget on payment of employee salaries.

Nyakang’o added that the county government had also failed to clear outstanding pending bills of Sh448.77 million while also missing a target on revenue collection.