MPs step up oversight as Controller of Budget reports progress in FY 2025/26 implementation

The Budget and Appropriations Committee has increased its scrutiny of the national budget for FY 2025/26, with Controller of Budget Dr. Margaret Nyakang’o sharing progress and suggesting ways to improve efficiency, accountability, and value for public funds. Dr. Nyakang’o appeared before the Committee chaired by Robert Pukose and presented an analysis of revenue performance, government releases, implementation of key government initiatives, donor-funded projects, and pending bills for both the national and county governments.

She highlighted a reduction in pending bills owed by national government entities, demonstrating progress in addressing outstanding obligations. The Committee also looked into the Electronic Government Procurement System (EGPS), which aims to boost transparency, efficiency, and accountability in public procurement. Dr. Nyakang’o acknowledged challenges faced during the system's transition, such as integration with existing systems and the need for user training.

The Committee sought clarification on the application of Article 223 of the Constitution, which allows for supplementary expenditure in certain situations. Dr. Nyakang’o stressed that the article should be applied within the constitutional and statutory framework, particularly for unforeseen expenses. Members also questioned the Equalisation Fund's implementation, emphasizing the need for tangible benefits to marginalized areas.

Lawmakers noted that the Fund, established to rectify historical injustices, was not fulfilling its intended purpose. Dr. Nyakang’o suggested that Kshs.4.17 billion would be authorized for withdrawal from the Equalisation Fund during FY 2025/26, including development projects in 25 counties. The Committee also looked into the broader budget credibility, with Dr. Nyakang’o recommending stronger macroeconomic and revenue forecasting, improved programme costing, prioritisation of expenditures, and rigorous assessment of new commitments' affordability.

She called for predictable and timely disbursement of Exchequer funds to Ministries, Departments, and Agencies, as well as County Governments, to ensure smooth implementation of approved programmes and projects. In a separate session, the Parliamentary Budget Office briefed the Committee on Kenya's economic situation, including the impact of global geopolitical developments, macroeconomic factors influencing FY 2026/27 budget implementation, and the fiscal framework supporting the FY 2026/27 budget implementation.