The move is likely to set put on a collision path MPs and the entities that have been collecting the funds also known as Appropriation-in-Aid to run their operations without an oversight body.
This means that State agencies that fall under the ambit of Parliament’s finance committee like the Insurance Regulatory Authority, Capital Markets Authority and the Central Bank of Kenya will going forward make submissions on their revenues and expenditure
Already the move to summon CBK to appear before the finance committee has rattled the regulator who declined to appear before the committee citing lack of provisions that direct CBK to appear before the house.
In a letter by CBK governor Kamau Thugge, addressed to the finance committee chair Kimani Kuria and copied to National Assembly Clerk, National Treasury Cabinet Secretary Njuguna Ndungu and Principal Secretary Chris Kiptoo, the regulator declined the invite.
CBK is estimated to have collected Sh463.5 billion for Financial Year 2023/2024 as Appropriation in Aid, which the MPs want to be accounted for
“I make reference to the above matter and letter dated August 24, 2023, by the Clerk of the National Assembly inviting me for a meeting on August 31, 2023, with your Committee to discuss the performance of the Appropriation In Aid, projected at Ksh.463.5 billion for Financial Year 2023/2024,” reads the letter from CBK.
It continues: “I would like to clarify that the Central Bank of Kenya funds its own budget and therefore its Annual Estimates are not presented to the National Assembly,” read the letter by Thugge.
Kuria however termed CBK’s response as an insult to an independent arm of government, maintaining that this is not the bank's own money and therefore it cannot be exempted from scrutiny by parliament as mandated by chapter 95 of the constitution.
“We have government entities collecting and spending public money without any oversight and now they have the audacity to tell Parliament that their budget cannot be oversight by the National Assembly because they finance their own budget,” said and infuriated Kuria.
The Insurance Regulatory Authority and Capital Markets Authority however appeared before the committee but were turned away for failing to furnish the sitting with required documents
They were given two weeks to put the documents in order.
He added that going forward all the MDA under the Finance and national planning committee and those whose oversight falls under by other committees will have their AIA’s examined.
"Any government expenditure including Defense, Office of The President, Judiciary and Speaker is subject to scrutiny oversight by national assembly so no one can be exempted," added Kuria.
The MPs said the time has come to look into the expenses and budgets of the agencies that assist government as a way to make savings from the main budget.
“Most of these entities are coming in during the main budget to struggle for little resources to finance their budgets while their internally collected funds have not been disclosed, this could be an avenue for corruption," said Kesses MP Julius Rutto.
The committee now wants fast tracking of the single treasury account operated by all parastatals that will see all revenues collected by these agencies channeled to the Central Bank.
The MPs accused the agencies of using the money to invest in government securities.
“Like for example CMA earned Sh77 million from investment in government securities, so essentially the government is borrowing and paying interest on its own money,” added Rutto.
