Duale Fires Back at Nyakang’o Over Oversight of Public Funds

Health Cabinet Secretary Aden Duale has responded to concerns raised by Controller of Budget Margaret Nyakang’o over the management and oversight of public funds and government levies.

In a statement dated September 18, Duale said remarks suggesting that some public funds fall outside any framework of oversight and accountability were inaccurate, arguing that existing constitutional and statutory provisions provide mechanisms for their management, withdrawal, and audit.

“Our attention has been drawn to public remarks by the Controller of Budget suggesting that certain public funds fall outside any framework of oversight and accountability. This characterisation is inaccurate and requires clarification,” Duale stated.

His comments came after Nyakang’o raised questions about her office’s visibility over several government funds and levies, including those held outside the Consolidated Fund.

Duale Explains Controller of Budget’s Mandate

Duale said Article 228(4) gives the Controller authority to oversee budget implementation by authorising withdrawals from the Equalisation Fund, Consolidated Fund and County Revenue Funds.

He noted that the Controller of Budget Act also provides for approval of withdrawals from any other public fund where an Act of Parliament expressly requires the Controller’s approval.

Duale further stated that Article 228(5) requires the Controller to ensure that a withdrawal from a public fund is authorised by law before approving it.

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According to Duale, the funds referred to in Nyakang’o’s remarks were established under separate legislation, with their own provisions governing management, withdrawals and audits.

He maintained that the existence of separate legal frameworks does not place the funds outside public accountability.

In addition, the health CS said the funds remain subject to oversight by the Auditor-General and Parliament, arguing that describing legally established and appropriated funds as being beyond scrutiny would misrepresent the existing legal framework.

Therefore, the Constitution separately provides for the Auditor-General to audit the accounts of public bodies and report findings to Parliament or the relevant county assembly.

Nyakang’o Raises Concerns Over Oversight of Public Funds

Nyakang’o had raised concerns about her office’s limited visibility over government funds and levies that are not part of the Consolidated Fund.

During a September 17, interview with Citizen TV, she said funds such as the Social Health Insurance Fund, National Infrastructure Fund, Sovereign Wealth Fund and Primary Healthcare Fund operate under separate legal frameworks, limiting the Controller’s direct visibility over their expenditure.

“What is a fund, tax? Funds and taxes are not part of the consolidated fund, so they are not visible to me,” said Nyakang’o

She also questioned how money collected through various government levies is tracked after collection and whether all such funds pass through the National Exchequer.

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Meanwhile, while challenging Nyakang’o’s characterisation of the oversight framework, Duale acknowledged the independence of the Office of the Controller of Budget.

He said the government respects the office’s constitutional independence but maintained that any expansion of its mandate should be achieved through the legislative process.

Duale noted that amendments to the Public Finance Management Act aimed at expanding oversight of funds and levies outside existing budget channels are already before Parliament.

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Photo showing Controller of Budget Margaret Nyakang’o. Photo/ File