Controller of Budget rejects Waiguru’s draft estimates

The Controller of Budget (CoB) has rejected the draft budget estimates for Kirinyaga County after governor Anne Waiguru government breached allocation ratios.

Margaret Nyakang’o, the CoB said the county government has allocated a paltry Sh998.4 million or 18.9 per cent of the total budget of Sh5.3 billion to development expenditure against the requirement of 30 percent.

This means that Kirinyaga county must revise it budget or fail to get approval of release of funds from the State main account.

“The allocation contravene provisions of section 107 of the Public Finance Management Act, 2012 which requires a minimum allocation of 30 per cent for development activities.

“We therefore advise the county to ensure allocation towards development expenditure is in line with the law,” Dr Nyakang’o in a letter dated June 10 that was tabled before the Senate committee on Devolution Tuesday.

Dr Nyakang’o criticised governor Waiguru for flouting the law in allocating Sh2.97 billion or 56.2 per cent of the total budget to salaries. She said section 25(1) (b) of the Public Finance Management (County Government) Regulations, 2015 sets the limit on county government’s expenditure on wages and benefits at 35 per cent of the county’s total revenue.

“We advise the county to ensure compliance with the legal limit on personnel emoluments expenditure,” Dr Nyakang’o said.

The CoB reviewed the Kirinyaga County Draft Budget Estimates for 2020/21and other planning documents for conformity with the PFM framework.

“The CoB has noted that the Draft Budget Estimates for 2020/21 did not adopt the Programme Based Budget (PBB) in line with section 12 of the PFM Act, 2012.

“We advise the county government to fully adopt PBB in line with the law,” the COB said.

She faulted governor Waiguru’s administration for failing to provide information on the development projects to be undertaken and their geographical locations.

“We advise the county to provide sufficient information on the locations of all projects in the budget to enhance openness and accountability in line with Article 201 of the Constitution,” Dr Nyakang’o said.

The CoB said budget allocation to some departments deviates from the ceiling contained in the County Fiscal Strategic Paper2019 adopted by the County Assembly.

“Any deviations should be appropriately explained in line with section 130(1) (iii) of the PFM Act, 2012,” she said.

Dr Nyakang’o said the county government had flouted sections 110, 112 and 113 of the Act that allows counties to establish and administer an Emergency Fund of up to two per cent of its last audited revenue in a single year to cater for any unforeseen occurrences.

Ms Waiguru has set aside Sh2 million to the emergency kitty which translates to 0.04 per cent of the total revenue.

“The county is advised to enhance the allocation to the Emergency Fund to two per cent of the last audited financial statements to ensure adequacy in line with section 113 of the PFM Act, 2012.

“Please address the above concerns in the finalised budget and revert by July 15, 2020 confirming adherence,” Dr Nyakang’o said.