FCPA Dr. Margaret Nyakang’o, CBS giving her opening remarks

The Controller of Budget, FCPA Dr. Margaret Nyakang’o, CBS (seated middle) poses with participants during the conference at the Kenya School of Government

The Controller of Budget (CoB), FCPA Dr. Margaret Nyakang’o officially opened a pivotal workshop for County officials at the Kenya School of Government (KSG), on September 23rd 2024. The one-week workshop was aimed at addressing key issues surrounding the withdrawal of funds from the County Revenue Fund (CRF). This gathering brought together Chief Finance Officers and County Assembly Clerks from across the 47 counties to discuss the CoB’s draft guidelines for exchequer approvals and the associated draft CoB Regulations.

In her opening remarks, the Controller of Budget emphasized the importance of the workshop, aligning it with the Office of the Controller of Budget’s strategic pillar to “standardize the requirements for approval of exchequer requests for National and County Governments.” The participants, selected for their integral role in county budget implementation, were tasked with ensuring that requisitions for funds from the County Revenue Fund adhere to the legal requirements laid out by the CoB.

During the workshop, participants reviewed the exchequer approval process for FY 2023/24, where a total of Kshs. 451.21 billion was approved for both development and recurrent expenditure. Despite the impressive 98.9% success rate in approvals, the Dr. Nyakang’o highlighted that, requests amounting to Kshs. 4.97 billion were declined due to non-compliance issues, including the use of outdated documentation, improper approval processes, and inconsistencies in adhering to public finance principles. These declined requests underscored the necessity of capacity building among county officials to bridge the knowledge gap and ensure compliance with the law.

Ms. Habiba Jirba, Chief Finance Officer County Government of Isiolo introduces herself at the conference

The Controller of Budget also pointed out the growing need for efficiency and transparency in public financial management, particularly as fiscal pressures mount in the current financial year. “Financial Year 2024/25 will require sacrifices and trade-offs as we navigate fiscal consolidation,” she said, emphasizing the need for adherence to prudent financial management practices, especially in light of budget cuts and re-prioritization of spending.

A significant part of the discussions focused on the outcomes of the Intergovernmental Budget and Economic Council (IBEC) meetings, which called for consultations between the Council of Governors (CoG) and the CoB on delays in the exchequer approval process. To resolve these delays, the CoB issued a circular detailing the documents required from counties and clarifying the requisition process. The CoB reaffirmed her commitment to approving exchequer requests in the shortest possible time, provided they meet all the required standards.

As the workshop progressed, participants also contributed to the ongoing review of the CoB Act and draft regulations. The Controller highlighted the importance of these consultations, calling on county officials to actively engage in shaping regulations that will enhance the exchequer approval process and strengthen the management of public funds across counties.

The workshop is expected to lead to stronger collaboration between the CoB and County Governments, fostering accountability and improved financial management across Kenya’s devolved units. Through enhanced understanding of the requisition requirements and active input into the regulatory framework, counties will be better positioned to manage their resources efficiently and transparently.

As the workshop drew to a close, the office remains hopeful that through the collaborative week long engagements, participants gained the knowledge and tools necessary to streamline exchequer requests and reduce approval delays, ultimately boosting the effectiveness of county operations and service delivery.

Participants listening to the proceedings of the workshop

The workshop is expected to lead to stronger collaboration between the CoB and County Governments, fostering accountability and improved financial management across Kenya’s devolved units. Through enhanced understanding of the requisition requirements and active input into the regulatory framework, counties will be better positioned to manage their resources efficiently and transparently.

As the workshop drew to a close, the office remains hopeful that through the collaborative week long engagements, participants gained the knowledge and tools necessary to streamline exchequer requests and reduce approval delays, ultimately boosting the effectiveness of county operations and service delivery.