This archive report was first published on 22 August 2019.
On August 22, 2019, the Office of the Controller of Budget marked eight years since its inception, as mandated by the 2010 Constitution. The office was established to oversee budget utilisation at the national and county governments, a pioneering move in devolution.
As the founding chief executive, Ms Agnes Odhiambo, exits after serving for eight years, it is crucial to assess the office's performance and identify areas for improvement. One of the critical issues raised by Ms Odhiambo is the ballooning public expenditures driven by salaries, largely due to bloated national and county governments.
The government's wage bill is a significant concern, with President Uhuru Kenyatta's earlier announcement of salary cuts for top officials failing to materialise. The officials still earn huge salaries, while MPs have increased their remuneration package, pushing the wage bill to unsustainable levels.
Ms Odhiambo also faulted counties for poor revenue collection, proposing that the Kenya Revenue Authority take over the role of collecting taxes for the counties. This is a practical solution to an endemic problem, as counties lack the capacity to collect all revenues due to them.
Counties should generate their own incomes to keep themselves afloat, rather than relying on the National Treasury for sustenance. Rationalising government revenue base and spending is essential to address the current economic depression and rising debt burden.
