Kenya’s Oversight Institutions Hampered by Funding Shortages and Government Neglect
A recent report from the Constitutional Implementation Oversight Committee has exposed critical weaknesses in Kenya’s key oversight institutions, highlighting chronic underfunding, lack of enforcement power, and widespread disregard from government entities as major barriers to their effectiveness. The Controller of Budget, Auditor General, and Commission on Revenue Allocation are struggling to fulfill their constitutional mandates due to systemic challenges, according to the findings tabled in the National Assembly.
The report paints a troubling picture of institutions tasked with ensuring transparency and accountability in public finance management. These bodies, meant to act as watchdogs over government spending and operations, face structural limitations that render their efforts largely ineffective. The committee noted that even when these agencies produce sound recommendations, their findings are frequently ignored or shelved by the very entities they are meant to oversee. A culture of non-cooperation from regulated government bodies actively undermines their ability to function, the report stated.
The Controller of Budget faces significant hurdles, including gaps in legislation and a lack of legal authority to enforce its recommendations. Without clear consequences for non-compliance, government agencies often disregard the Controller’s guidance. A notable example is the Housing Levy Fund, which collects approximately 63 billion shillings annually but escapes oversight because it is classified as a levy rather than a budgeted fund. This loophole leaves billions of shillings unmonitored, raising concerns about potential mismanagement.
Similarly, the Office of the Auditor General is grappling with an overwhelming workload and insufficient resources. The number of entities it audits has surged from 1,192 in the 2016/17 financial year to over 12,700 in 2023/24. Despite this sharp increase, its funding remains critically low, receiving only 0.2 percent of the national budget. This is significantly less than its counterparts in Uganda and South Africa, where greater financial autonomy enables more effective oversight. The committee has called for an increase to 0.5 percent of national revenue to strengthen the Auditor General’s capacity.
Parliament itself has come under scrutiny for obstructing these oversight bodies. The report highlighted delays in passing laws that would bolster the Auditor General’s mandate and a failure to prioritize discussions on performance audits. Of the 50 audit reports submitted, only two have been debated: the 2023 Flood Response and the 2021 audit on services for persons with disabilities. This lack of engagement further weakens the oversight process.
The Commission on Revenue Allocation, responsible for advising on the equitable distribution of national revenue, also faces challenges due to underfunding and limited influence. Its recommendations, critical for ensuring fair resource allocation across counties, are often overlooked, undermining efforts to promote balanced development.
The committee’s findings have sparked calls for urgent reforms. Recommendations include amending existing laws to grant the Controller of Budget and Auditor General punitive powers to enforce their findings. There is also a push to increase funding allocations to align with the growing responsibilities of these institutions. Advocates argue that strengthening these bodies is essential for fostering transparency, accountability, and trust in Kenya’s governance system.
As Kenya navigates complex fiscal challenges, the report underscores the need for robust oversight to safeguard public resources. Without immediate action to address these systemic issues, the country risks further erosion of public confidence in its institutions.