Controller of Budget, FCPA Dr. Margaret Nyakang’o, CBS, making her presentation during the IBEC Meeting

The Controller of Budget, FCPA Dr. Margaret Nyakang’o, attended the 29th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) on February 13, 2026, chaired by H.E. the Deputy President, Prof. Kithure Kindiki. The Controller of Budget presented an update on the status of Intergovernmental Participation Agreements (IPAs), settlement of pending bills, and other key fiscal developments affecting county governments.
During the Session, Dr. Nyakang’o informed the Council that twenty-two (22) counties had complied with the requirements for Intergovernmental Participation Agreements and are now accessing bursary funds. She noted that the remaining counties are working to meet the necessary conditions to access these funds.
On pending bills, the Controller of Budget reported that thirty-three (33) out of the forty-seven (47) counties had submitted their pending bills universe as required. However, she observed that progress in the settlement of pending bills remains slow, underscoring the need for accelerated efforts by county governments to address outstanding obligations to suppliers and service providers.
The Controller of Budget also highlighted improvements in the timely processing of exchequer approvals following the development, dissemination, and implementation of exchequer guidelines by the Office of the Controller of Budget. She noted that the new guidelines have enhanced processing rates, efficiency and predictability in the release of funds to county governments.
Dr. Nyakang’o further cautioned that the continued use of manual payroll systems poses a significant risk to the government’s efforts aimed at reducing the Wage Bill to the statutory threshold of 35 percent of county government revenue, as required under the Public Finance Management framework. She emphasized the importance of automation and strengthened payroll controls to enhance fiscal discipline.
She assured the IBEC that her office would continue providing quarterly updates on these critical matters, or as may be required, to support informed decision-making and strengthen public financial management across county governments.
The Council also considered proposals on the equitable share allocation to counties for the Financial Year 2026/27. It was apprised of proposals by the National Treasury to allocate KSh420 billion, KSh458 billion proposed by the Commission on Revenue Allocation, and KSh534 billion proposed by the Council of Governors.
The Council resolved to continue deliberations on the equitable share allocation as part of the ongoing budget-making process, ahead of the presentation of the Budget Policy Statement for FY 2026/27 to Parliament.
The IBEC remains a critical platform for consultation and coordination between the national and county governments, ensuring effective fiscal management and strengthening intergovernmental relations.