Nyakang’o sounds alarm as counties drag feet on MCA Autonomy Fund

Controller of Budget Margaret Nyakang’o has raised the red flag over the slow pace of operationalisation of County Assembly Fund.

Nearly a year after the law meant to grant MCAs financial independence from governors came into force, only two county assemblies have operationalised the funds.

The latest budget implementation review report shows that as of March 31, 2026, only Trans Nzoia and Marsabit have fully operationalised the funds despite the law requiring all 47 counties to establish them.

The delay means most county assemblies are yet to enjoy the financial autonomy envisioned under the County Public Finance Laws (Amendment) Act, which President William Ruto signed into law in August last year.

The law mandates the county executives of finance to create funds within the county governments.

The legislation amended Section 109 of the Public Finance Management Act and established a County Assembly Fund in every county, with the clerk of the county assembly designated as the administrator.

However, Nyakang’o said most counties remain at different stages of implementation.

“Clerks of county assemblies should work with county executive committee members responsible for finance to fully operationalise County Assembly Funds by June 30, 2026,” the Controller of Budget said in the report.

She also directed county governments to include a clear disbursement schedule for transfers from the County Revenue Fund to the County Assembly Fund in their 2026/27 budget submissions.

The slow rollout threatens to delay a major reform that was intended to free county assemblies from financial dependence on county executives.

For years, MCAs have complained that governors and county treasuries wield excessive control over assembly operations by controlling the release of funds.

They argued that such dependence undermined their constitutional oversight role because assemblies were expected to scrutinise the same executives that controlled their budgets.

Before the amendment, all assembly funding requests had to pass through county treasuries, creating opportunities for delays and political interference.

The law was therefore hailed as a milestone in strengthening devolution and enhancing the independence of county legislatures.

While signing the Bill at the State Lodge in Homa Bay, President Ruto said the legislation would address a long-standing gap that had left county assemblies vulnerable to manipulation through funding controls.

“The County Public Finance Laws (Amendment) Bill amends the Public Finance Management Act to provide for the establishment of a County Assembly Fund in each county,” the President said.

Under the law, the fund is administered by the clerk of the county assembly, who is required to ensure that all monies allocated to the assembly are used exclusively for assembly functions.

The law further requires the administrator to establish a County Assembly Service Fund Account at the Central Bank of Kenya.

Although the clerk enjoys significant authority over the fund, accountability mechanisms remain in place. Withdrawals require approval from the Controller of Budget and must be accompanied by written instructions from the fund administrator.

The legislation also seeks to guarantee predictable funding for county assemblies by requiring regular transfers into the fund.

Meru Senator and Senate Deputy Speaker Kathuri Murungi, who sponsored the Bill, argued that lack of resources had severely weakened county assemblies and hindered effective oversight.

“Most of the time, there is no money in the county assemblies. When they requisition, they are not able to get the funds to carry out their work,” Murungi said during debate on the legislation.

He maintained that county assemblies cannot effectively hold governors accountable while relying on them for operational funding.

“We want to treat the 47 county assemblies the way the national government treats both Houses of Parliament. Money allocated to Parliament is shared between the National Assembly and the Senate through the Parliamentary Service Commission. We decide what to do and when—the same should apply to county assemblies,” he said.

Murungi further argued that financial dependence had exposed assembly staff and MCAs to intimidation and manipulation by county executives.

INSTANT ANALYSIS

Under the County Governments Act, county assembly budgets should not be less than seven per cent of a county's total revenue or twice the personnel emoluments, whichever is lower. However, delays in funding and executive interference have often frustrated compliance with the requirement. With only Trans Nzoia and Marsabit having operationalised the funds so far, Nyakang’o's latest warning is expected to pile pressure on counties to fast-track implementation before the June 30 deadline and finally deliver the financial independence that MCAs have sought for years.