Treasury Cabinet Secretary (CS) Mbadi has openly accused Controller of Budget Margaret Nyakang’o of engaging in corrupt practices that delay the transfer of vital funds to county governments.
Speaking at a press briefing, Mbadi expressed his growing frustration over what he termed “rent-seeking behavior” that complicates financial transactions between the national treasury and local administrations.
National Treasury CS John Mbadi. Photo: The Star Source: Facebook
“I wish the Controller of Budget were here; I have a problem with her office,” Mbadi stated, directly addressing the issues that have led to ongoing bottlenecks.
He emphasized that once funds are transferred to the counties, they should be made available without unnecessary obstacles.
“This is a process that needs to stop. There should be no reason for county officials to be perpetually in Nairobi to clear funds.”
The Treasury CS highlighted that the current bureaucratic system forces governors and County Executive Committee members to travel long distances to the capital for what should be routine financial operations.
Treasury CS John Mbadi defends IMF amid public uproar during a parliamentary committee. Photo: Citizen Digital. Source: X
“There is no reason why they cannot resolve issues via phone or email,” he asserted.
“The moment we keep money idle in accounts, it does not benefit the country; in fact, it severely slows our economic growth.”
Mbadi pointed out that the ongoing delays are detrimental to the government’s ability to collect taxes and pay salaries, stressing that Kenya’s economic growth has stagnated at 4.6%, below the potential of 6% or even 7%.
“We must do better,” he urged. “When funds sit idle, it affects not just the counties but the entire economy.”
National Treasury CS John Mbadi. Source: Facebook
The CS called for an urgent overhaul of the financial management system, advocating for a streamlined process that ensures quick resolution of any questions related to fund transfers.
“We need to ensure that money reaches the counties without delays,” he insisted, questioning the necessity of face-to-face interactions that often serve to prolong the process rather than expedite it.
As economic pressures mount, Mbadi’s remarks serve as a clarion call for reform, urging a shift towards a more efficient financial management system that prioritizes timely fund transfers to support local governance and stimulate economic growth.
