Tough times for wrangling counties as CoB recommends withholding of funds

Controller of Budget Margaret Nyakang’o./Photo: CoB

Controller of Budget Margaret Nyakang’o has proposed calling for bold action against county governments and public entities entangled in persistent leadership wrangles, proposing that their funding be withheld.

In a significant move, she urged Treasury Cabinet Secretary John Mbadi to exercise powers granted under the Public Finance Management Act and suspend disbursement of funds to entities whose internal disputes have dragged on for more than three months.

“The Cabinet Secretary for the National Treasury can invoke his powers under the PFM Act to stop funding to entities with wrangles that extend beyond three months,” Nyakang’o told the Senate.

She urged Parliament to enact legislation that would guide public finance institutions on fund management during such crises.

“The Controller of Budget is concerned about the accountability of public funds in entities experiencing leadership and operational crises,” Nyakang'o said.

Article 225 of the constitution empowers the cabinet secretary responsible for finance to halt the transfer of funds to a state organ or public entity, subject to parliamentary approval, in cases of serious or persistent breaches of the law.

However, such a suspension cannot exceed 50 per cent of the funds due and must not last more than 60 days.

Nyakang’o made the remarks while appearing before the Senate Justice and Legal Affairs Committee to explain delays in disbursement of funds to Nyamira county assembly, which has been gripped by prolonged and bitter leadership disputes.

The crisis has led to an unprecedented scenario; two parallel assemblies, each claiming legitimacy, with their own speaker, clerk and staff.

One faction sits at the official county assembly precincts, while the rival group convenes its sessions at a gazetted ward office.

“There are two factions with separate leadership structures—including speakers, clerks and assembly service boards—leading to confusion, legal uncertainty and an inability of the county assembly to fulfil its constitutional mandate,” reads a Senate mediation report.

The report outlines the assembly’s operational paralysis, pointing to a breakdown in governance caused by competing claims to key leadership positions.

“The contestation of the office of the speaker has the dire consequence of affecting all other county assembly service structures," Nyakang'o said.

It is imperative to determine who the legitimate speaker is."

The dispute has also hindered routine communication. Nyakang’o revealed that her office has been receiving letters from both factions, leaving the CoB in a dilemma.

The Senate committee said the ongoing stalemate in Nyamira has not only stalled service delivery but also undermined accountability in the use of public fund, justifying the call for financial sanctions against such dysfunctional entities.

INSTANT ANALYSIS

The two factions, led by the embattled Speaker Okero and Ekerenyo MCA Thaddeus Nyabaro—who has served as Deputy Speaker under Okero, and now claims to be the legitimate Speaker—accused each other of failing to obey the law. Okero took the committee through the process that led to his ejection from the chambers while presiding over assembly duties, his eventual removal from office in October last year, and his impeachment, which he claimed was unfair and is currently being challenged in court. The embattled Speaker explained to the committee that the origin of his troubles began when MCAs voted to impeach Governor Nyaribo