- The report said the office of the CoB has been involved in conflict and political intimidation by several governors and senators from the onset of devolution.
- CoB authorises the withdrawal of public resources from public funds accounts under Articles 204, 206, and 207.
The credibility and independence of the Office of Controller of Budget (OCOB) are under threat from political interference, findings of a study by the Kenya Human Rights Commission (KHRC) claim.
The report by the commission said the interference is eroding public confidence in the institution, and its oversight role on national and county budgets.
KHRC noted that the law mandates the COB to ensure that public entities rigorously adhere to the legal framework before approving the withdrawal of resources from various funds' accounts.
“Nonetheless, the study has observed that despite the COB's diligent execution of its mandate per the law, the credibility and independence of the office have come under threat due to political interference, as evidenced by a recent scandal,” the report said.
On March 7, 2023, COB Margaret Nyakang’o claimed to have been under duress from the Executive to approve irregular public payments worth Sh15 billion days before the 2022 general election.
The report said the National Treasury accesses the Annuity Fund to raise Sh9.2 billion that was not budgeted for.
It pointed out that Article 223 provides that if sufficient funds for an expenditure or a new need arises for a purpose for which the Appropriation Act has not provided an adequate amount, the government may spend money that has yet to be appropriated from the Contingencies Fund.
“However, the National Treasury accessed the Annuity Fund, breaching the law,” the report added.
“Per Article 248 of the Constitution, constitutional commissions and independent offices, such as OCOB, are designed to protect the people’s sovereignty, ensure adherence to democratic values and principles, and promote constitutionalism,” the report added.
Office of the Controller of Budget is one of the two independent offices established under Article 228 of the Constitution to oversee the implementation and reporting on the budgets of the national and county governments.
It authorises the withdrawal of public resources from public funds accounts under Articles 204, 206, and 207.
The CoB is appointed through nomination by the President and approval by the National Assembly.
The law, under Article 228 (5) of the Constitution, requires that before authorizing any withdrawal from public funds, COB must be satisfied that the retreat is in line with the existing legal framework.
Among its functions, the OCOB conducts monitoring, evaluating, reporting, and making recommendations to the national and county governments on measures to improve budget implementation.
The report said the office of the COB has been involved in conflict and political intimidation by several governors and senators from the onset of devolution.
“The county heads cited interference of the COB on their independence whenever the office executed its mandate and halted authorization of county budgets that did not adhere to the laws and regulations of the Public Finance and Management Act. Such scenarios point to disregard of the OCOB, thereby undermining devolution and effective service delivery,” stated the report.
KHRC released the report after surveying the independence of Constitutional Commissions and Independent Offices (CCIOs).
The survey focused on four independent fiscal institutions under Chapter 15, namely OCOB, the Commission on Revenue Allocation (CRA), the Salaries and Remuneration Commission (SRC) and the Office of the Auditor General (OAG).
The study adopted a hybrid of qualitative and quantitative participatory approaches encompassing a secondary review of key policy, regulatory, and legislative frameworks of Independent Fiscal Institutions.
A qualitative approach was employed to collect non-numerical data on functional and administrative independence with norms and standards in service delivery observed as part of qualitative data for some functions and mandates of Independent Fiscal Institutions (IFIs).
The tools for qualitative data included in-depth interviews and key informant interviews.