Former Law Society of Kenya president Faith Odhiambo has challenged the government’s handling of public funds outside the Consolidated Fund, questioning how such money can be fully monitored when the Controller of Budget says her office does not have direct access to some of the accounts.
Odhiambo’s concerns followed remarks by Controller of Budget Margaret Nyakang’o that several government funds and levies are held outside the Consolidated Fund, limiting her office’s direct visibility over them.
Speaking during an interview on September 17, 2026, Nyakang’o listed the Social Health Insurance Fund, National Infrastructure Fund, Primary Healthcare Fund and Sovereign Wealth Fund among the funds that fall outside the Consolidated Fund.
The disclosure prompted Odhiambo to raise questions about whether the existing arrangements provide sufficient checks on public finances.
She cited Article 206(1) of the Constitution, which states that money raised or received by or on behalf of the national government should be paid into the Consolidated Fund, except where the law allows otherwise.
“By constitutional design, public money must be traceable and accountable,” she wrote. “Anything less erodes the rule of law and weakens the foundations of public finance that the 2010 Constitution sought to entrench.”
Odhiambo also referred to Articles 206(4) and 228(5), which set out the Controller of Budget’s role in approving withdrawals from public funds.
She argued that directing government revenue through arrangements outside the established framework could reduce the Controller of Budget’s ability to follow the money and make it harder for Parliament to exercise its oversight role.
Nyakang’o has, however, said her office can only carry out its responsibilities within the legal framework that governs the funds under its mandate.
The issue has also reached Parliament, with MPs proposing amendments to the Public Finance Management Act that would widen the Controller of Budget’s oversight of funds and levies operating outside the current budget system.
Odhiambo also drew attention to government spending on travel, citing figures contained in the Controller of Budget’s National Government Budget Implementation Review Report for the 2025/26 financial year.
According to the report, national government travel costs reached Sh30.69 billion during the financial year.
Domestic travel accounted for Sh21.98 billion, while foreign trips cost Sh8.71 billion.
State House had the largest allocation among the listed government offices and departments, recording travel expenditure of Sh2.5 billion.
It was followed by the State Department for Internal Security and National Administration, which spent Sh1.4 billion, and the State Department for Immigration and Citizen Services, which recorded Sh1.1 billion.
The Office of the Deputy President reported travel expenditure of Sh655 million.
Overall, national government travel spending rose from Sh25.45 billion in the previous financial year to Sh30.69 billion in 2025/26.
Odhiambo said the spending figures make the question of effective monitoring of public money more important, particularly where revenue and expenditure streams fall outside the normal government budget structure.
She called for all government revenue to pass through the Consolidated Fund and urged the publication of full accounts within the required timelines.
Odhiambo further argued that institutions responsible for oversight should have the ability to track public funds.
“The Constitution does not entertain secret budgets,” she wrote. “If money bypasses the Treasury, it bypasses the people’s control.”
The debate comes as Nyakang’o continues to seek stronger powers for her office to monitor public finances.
A proposed amendment to the Controller of Budget Act seeks to give the office broader access to national and county exchequer accounts.
The proposed changes would also strengthen the monitoring of public funds by the Controller of Budget.
The Office of the Controller of Budget is established under Article 228 of the Constitution and is mandated to oversee the implementation of national and county budgets by authorising withdrawals from public funds.