The Ethics and Anti-Corruption Commission (EACC) has rebuked the response of county governors to a series of audit findings from the Controller of Budget (CoB). The latest confrontation underscores the critical issues surrounding financial oversight in Kenya’s devolved system of government.
Eric Ngumbi, EACC Spokesperson, criticized the dismissive attitude of county governors towards the CoB’s report, particularly concerning the alarming revelation of multiple bank accounts operated by some counties. In his statement during a press conference in Mwingi, Kitui County, Ngumbi urged governors to take the findings seriously and implement necessary reforms rather than undermine the audit process. “The Controller of Budget is performing her constitutional mandate,” Ngumbi emphasized, “and it is imperative that governors accept accountability and work on rectifying the irregularities pointed out by the office.” Ngumbi’s remarks were aimed at highlighting the serious concerns raised about transparency and accountability in managing devolved funds, especially when hundreds of bank accounts are involved.
The CoB’s recent report detailed the financial status of county governments for the first quarter of the 2024-25 fiscal year, from July to September. The report revealed that several counties had spent zero of their allocation on development projects during this period, a fact that CoG chairperson Ahmed Abdullahi attributed to the delayed release of funds from the National Treasury. Abdullahi clarified that the counties did not receive any exchequer releases from the Treasury during the first quarter, which meant they had to utilize the balances from the previous financial year or resort to loans from commercial banks to sustain service delivery and pay salaries. This delay, Abdullahi noted, was not uncommon and was due to bureaucratic hurdles in disbursement procedures rather than a lack of funding from the Treasury.
Despite these explanations, governors like Wajir’s Ibrahim Ahmed have been quick to criticize the CoB for presenting a distorted view of the counties’ financial health. Ahmed argued that the portrayal of counties as failing to utilize their funds for development projects unfairly tarnished their image and caused unnecessary public and media scrutiny. He claimed that the challenges in accessing funds were largely orchestrated by the office of the Controller of Budget, suggesting that the delays were not necessarily indicative of mismanagement or negligence at the county level. “This is a facilitative office that must live up to, and respect their mandate,” Ahmed stated, defending the governors’ stance against the audit findings.
In response, Ngumbi emphasized the importance of accountability in managing public funds at the county level. He urged governors to implement the recommendations from various EACC reports, particularly those arising from the Corruption Risk Assessment conducted across 28 counties. These assessments identified significant gaps in financial management practices, including the operation of multiple bank accounts. Ngumbi warned that maintaining such accounts without proper justification raises suspicions of misuse of public funds, potentially exposing the counties to financial mismanagement and corruption risks. He stressed that these issues should be addressed immediately to ensure effective service delivery and trust in the devolved system.
The EACC’s stance reflects a broader concern about the integrity of financial practices within the county governments. Ngumbi’s remarks were aimed at urging the governors to take responsibility for the financial mess and implement practical steps to enhance transparency and accountability. As the Commission continues to discharge its mandate in protecting public funds, it calls for a commitment from the governors to recognize the theft of public funds as a serious threat to devolution and to undertake accountability measures as advised by oversight bodies.
The debate over financial transparency and accountability in county governments will likely continue as governors and the CoB try to navigate the complexities of fund disbursement and utilization in a devolved system. The challenge now is to strike a balance between ensuring that counties receive adequate resources for development projects and maintaining stringent oversight to prevent misuse of public funds. As the EACC and CoB press on with their roles, the responsibility rests with the governors to demonstrate effective management of public resources and to uphold the principles of good governance in the management of devolved funds.
