Taxpayers are set to foot a Sh14.63 million retirement package for Controller of Budget Margaret Nyakang’o as she prepares to leave office next year after completing the Constitution's mandatory eight-year term.
Fresh budget documents tabled in Parliament show that Nyakang’o's gratuity has been factored into the 2026/27 financial year estimates, alongside Sh44.4 million earmarked for outgoing Teachers Service Commission commissioners.
The allocations are captured in the Report on Expenditures of the Consolidated Fund Services, which outlines funding requirements for constitutional commissions and independent offices.
Nyakang’o, who took over from Agnes Odhiambo in 2019, is expected to complete her tenure in January 2027. The Constitution bars a Controller of Budget from serving more than one term.
According to the report before the National Assembly, the planned gratuity payments are among the key factors behind an increase in expenditure for several constitutional offices.
Committee chairman Abdi Shurie said: “The increase is mainly driven by Sh139.54 million for the judicial department, gratuity payment of Sh14.63 million to the Controller of Budget, and Sh44.4 million to the Teachers Service Commission, partly offset by reductions across the other commissions and offices.”
Established under Article 228 of the Constitution, the Office of the Controller of Budget oversees the implementation of budgets by both levels of government and authorises withdrawals from public funds.
The office is also responsible for producing statutory reports, investigating complaints from members of the public, undertaking inquiries on its own motion and facilitating dispute resolution where necessary.
It further advises Parliament on matters relating to transfers of public funds to State organs and other public institutions.
The Constitution provides that the holder of the office is nominated by the President and appointed after approval by the National Assembly. A candidate must possess extensive expertise in public finance or have at least 10 years' experience in auditing public finance management.
The law also requires the Controller of Budget to submit reports to Parliament every four months detailing how national and county governments are implementing approved budgets.
Throughout her tenure, Nyakang’o has emerged as one of the government's most outspoken fiscal watchdogs, repeatedly raising concerns over Kenya's rising debt burden and growing repayment obligations.
In submissions to the National Assembly Public Debt and Privatization Committee, she warned that mounting debt servicing costs were squeezing resources available for development projects and key public services.
She noted that public debt had risen to Sh12.3 trillion by December 31, 2025, largely due to persistent budget deficits and revenue collection falling below expectations.
According to Nyakang’o, the shortfall in revenue has forced the government to increase borrowing, particularly from the domestic market, to sustain its spending plans.
“The high debt servicing heightens fiscal vulnerability, indicating substantial near-term repayment pressure,” Dr Nyakang’o told the committee. “The skew towards short-term maturities exposes the government to refinancing and rollover risks.”
She also cautioned that the country faces pressure in meeting its external debt commitments, revealing that repayment delays had previously affected Sh53.6 billion worth of Treasury Bonds for periods ranging between one and two months.
The disclosures, she said, raise questions about the government's ability to comfortably meet future debt obligations without stronger fiscal measures.