Former Law Society of Kenya president Faith Odhiambo has expressed concerns over government funds and levies being kept outside the Consolidated Fund, raising questions about public finance management in Kenya. According to Odhiambo, the Controller of Budget is unable to trace these funds, which may breach Article 206 of the Constitution. This article requires all money raised or received on behalf of the national government to be paid into the Consolidated Fund unless a specific legal exception applies.
Odhiambo emphasized that the constitutional design aims to keep public money traceable and accountable. She warned that arrangements limiting visibility could erode the controls established by the 2010 Constitution. The Constitution outlines the Controller of Budget's role in authorizing withdrawals from the Consolidated Fund and other public funds, underscoring the need for oversight within the constitutional framework. Odhiambo cited Articles 206 and 228, which highlight the importance of parliamentary oversight in public finance management.
Odhiambo linked her concerns to the proposed Sovereign Wealth Fund, arguing that a fund operating without first crediting proceeds to the Consolidated Fund and without Controller of Budget oversight could create a parallel financial structure outside the national budget. This could diminish Parliament's ability to scrutinize public expenditure and limit independent oversight mechanisms. The proposed fund has sparked debate about the management of public finances and the role of parliamentary oversight.
The Controller of Budget's 2025/26 National Government Budget Implementation Review Report revealed significant spending by government agencies. Total national government travel spending was Sh30.69 billion, with Sh21.98 billion on domestic travel and Sh8.71 billion on foreign travel. State House led the list with Sh2.5 billion in travel costs, followed by the State Department for Internal Security and National Administration (Sh1.4 billion) and the State Department for Immigration and Citizen Services (Sh1.1 billion).
Odhiambo argued that the magnitude of these expenditures makes robust financial oversight essential, especially when some revenues may bypass the Consolidated Fund and escape conventional scrutiny. She urged that all government revenue be routed through the constitutional and statutory mechanisms, with timely publication of financial accounts and stronger enforcement. This would enable Parliament, the Controller of Budget, and the Auditor-General to track resources from collection to expenditure.
Odhiambo emphasized that the Constitution does not permit secret budgets, insisting that any money bypassing the Treasury also bypasses public control. She called for stricter compliance and transparency in public finance management, stressing the importance of accountability and parliamentary oversight. The concerns raised by Odhiambo highlight the need for a more transparent and accountable management of public finances in Kenya.
The issue of off-budget funds has significant implications for Kenya's public finance management. Odhiambo's concerns underscore the importance of ensuring that all government revenue is properly accounted for and that parliamentary oversight mechanisms are effective. The proposed Sovereign Wealth Fund has sparked debate about the management of public finances, and it remains to be seen how the government will address these concerns.
Key points
- Former LSK president Faith Odhiambo raises constitutional concerns over off-budget funds in Kenya.
- Odhiambo cites Article 206 of the Constitution, which requires all money raised or received on behalf of the national government to be paid into the Consolidated Fund.
- The issue of off-budget funds has significant implications for Kenya's public finance management and parliamentary oversight.
