Health Cabinet Secretary Aden Duale has rejected concerns raised by Controller of Budget Margaret Nyakang’o over the lack of direct visibility into several government funds. Duale said the funds mentioned by Nyakang’o are established through Acts of Parliament and have specific legal procedures governing their operations. He emphasized that their creation under separate laws does not remove them from the country’s accountability system.
Duale's response came in a statement issued on Friday night, September 18, 2026, following comments by Nyakang’o that her office does not directly see spending from a number of funds and levies operating outside the Consolidated Fund. Nyakang’o had cited funds such as the Social Health Insurance Fund (SHIF), National Infrastructure Fund (NIF), Sovereign Wealth Fund, and Primary Healthcare Fund.
Duale referred to Article 228 of the Constitution and the Controller of Budget Act, 2016, saying they clearly define the responsibilities of the Controller of Budget. He said the office is responsible for authorising withdrawals from the Equalisation Fund, the Consolidated Fund, and County Revenue Funds. Duale added that Parliament can also, through legislation, place other public funds under the Controller of Budget’s approval.
According to Duale, the fact that some funds are created under separate legislation does not place them outside public scrutiny. He said each of the funds referred to in Nyakang’o’s interview has its own legal framework that sets out how the money is handled, withdrawn, and audited. Duale pointed to Article 228(5), which requires the Controller of Budget to determine whether a proposed withdrawal has been authorised by law before approving it.
Duale added that the funds remain subject to oversight by the country’s two key accountability institutions. He said describing the funds as beyond oversight would give an incorrect picture of the legal arrangements governing public finances. Duale also sought to separate his criticism of Nyakang’o’s remarks from the constitutional independence of her office.
The Controller of Budget had explained that her office lacks direct visibility into several government funds and levies that operate outside the Consolidated Fund. Nyakang’o said many of the funds are transferred to implementing agencies in lump sums, limiting her office’s ability to follow the subsequent use of the money. She called for stronger reporting systems that would allow Parliament and other oversight institutions to examine the management and expenditure of money held in such funds.
Duale emphasized that the government respects the Controller of Budget as an independent constitutional institution. He said the office has established channels through which it carries out its mandate, including reporting to Parliament and approving withdrawals that are legally authorised. The dispute highlights the need for clarity on the oversight of public funds in Kenya.
Key points
- Duale disputes Controller of Budget’s claims over oversight of public funds
- The funds in question were established through Acts of Parliament and have specific legal procedures governing their operations.
- The Controller of Budget's office lacks direct visibility into several government funds and levies operating outside the Consolidated Fund.
