By David Bogonko Nyokang’i
Controller of Budget Margaret Nyakang’o has raised concern over persistent weaknesses in the implementation of key public finance and health financing laws by county governments.
She warned that the shortcomings continue to undermine accountability and the prudent use of public resources.
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In her Monitoring and Evaluation Report on County Governments’ Budget Implementation for the 2025/26 financial year, based on visits to all 47 counties, Nyakang’o found that several devolved units have yet to fully operationalise the Facilities Improvement Financing (FIF) Act, 2023 despite its enactment to enhance the financial autonomy of public health facilities.
“The Facilities Improvement Financing Act was intended to strengthen health financing, improve accountability and enable public health facilities to retain and utilise their own revenue. However, our assessment found that several challenges continue to hinder its full implementation, undermining the objectives of the Act,” Nyakang’o said.
She noted that a number of county governments had failed to enact county-specific legislation, regulations and policy frameworks required to operationalise the law.
“County governments should expedite the development, approval and implementation of county legislation and accompanying regulations to provide a clear legal and operational framework for the Facilities Improvement Financing Act. This will strengthen governance, accountability and the effective utilisation of facility improvement funds,” she said.
The Controller of Budget also expressed concern over inadequate awareness among health facility managers regarding statutory financial reporting obligations.
“Our assessment established that many facility in-charges have not been adequately sensitised on the financial reporting requirements under the Facilities Improvement Financing Act. County treasuries and county health departments should implement structured capacity-building programmes to ensure compliance with reporting timelines,” Nyakang’o said.
The report further highlights governance concerns surrounding County Public Funds established under the Public Finance Management Act. According to the Controller of Budget, several counties, including Kisumu, Baringo, Bomet, Embu, Taita Taveta and Machakos, continue to operate public funds whose legally approved tenure has already expired.
“County Executive Committee Members responsible for Finance should urgently seek the necessary approvals to renew or wind up County Public Funds whose legal tenure has lapsed in accordance with the Public Finance Management Act,” she said.
Nyakang’o also warned that the failure by administrators of County Public Funds to submit quarterly financial reports to her office weakens oversight and accountability.
“Quarterly financial reports are critical in enabling effective monitoring of County Public Funds and assessing compliance with approved budgets. County Executive Committee Members responsible for finance should ensure fund administrators fully comply with the reporting requirements under the Public Finance Management Act,” she said.
The Controller of Budget explained that the monitoring exercise was undertaken to assess compliance with public finance laws, evaluate governance structures in county institutions and determine the status of projects funded in previous financial years.
The assessment also covered implementation of the Facilities Improvement Financing Act, procurement of medical supplies, governance of municipalities and county corporations, county public funds, banking arrangements and projects financed through the Equalisation Fund.
Nyakang’o said the findings are intended to help county governments strengthen financial management, improve accountability and ensure efficient implementation of county budgets.
