Controller of Budget Margaret Nyakang'o when she appeared before the Senate Finance and Budget Committee at the County Hall, Nairobi on March 11, 2025.
Two counties have signed an agreement with the national government in an attempt to comply with the Controller of Budget’s ban on devolved units administering bursary funds for post-nursery learners.
The Controller of Budget, Margaret Nyakang'o, informed the National Assembly's Finance and National Planning Committee that Murang'a and Marsabit counties have signed agreements to manage the bursary function on behalf of the national government.
“Two counties have signed the Intergovernmental Agreement on Bursaries with the Ministry of Education,” Dr Nyakang’o said. “The import of this agreement is that the national government will give them funds to issue bursaries to students in secondary and universities and not use county government share of revenues.”
On January 14, 2025, Dr Nyakang’o wrote a memo to all 47 county governments, informing them that they had no legal basis to finance students in post-primary institutions, as the mandate lay with the national government.
She informed governors that the only way county governments could administer bursaries for post-primary education would be if these functions were transferred from the national government to the county governments.
In the letter, Dr Nyakang’o stated that Part 1 of the Fourth Schedule of the Constitution designates universities, tertiary education institutions, primary schools, secondary schools and special needs education institutions under the national government.
"Consequently, Part 2 of the Fourth Schedule under Section 9 assigns pre-primary education, village polytechnics, home craft centres and childcare facilities to county governments,'' Dr Nyakang’o said.
She informed the Finance Committee that the instruments of the Intergovernmental Agreement on Bursaries had been deposited at her office the previous evening (Tuesday May 13, 2025), adding that she had not yet had the opportunity to review them.
“The Ministry of Education Signed the Intergovernmental Agreement on Bursaries and we wait to see if the ministry will give them money because money follows functions.”
Appearing before the committee over the budget for the 2025/26 financial year, Dr Nyakang’o said that her office expects the Ministry of Education to allocate funding for high school, college and university bursaries to Murang'a and Mandera.
These revelations follow questions raised by Peter Kaluma, the MP for Homa Bay Town, who demanded to know whether the Controller of Budget had changed her decision to ban the government from spending county funds on bursaries for high school, college and university students.
Mr Kaluma urged Dr Nyakang’o to uphold the constitutional provisions delineating the mandates of the national and county governments.
“Counties should stick to their mandate. They should stick to the Constitution that separates functions. Any functions not given to any level of government cannot be performed by the other unless there is agreement on transfer of the function,” Dr Nyakang’o said.
“It is not anticipated that funds they receive from the national government share will be spent on secondary and university bursaries.”
She said the Fourth Schedule of the Constitution gives counties the function to manage village polytechnics and early childhood development education (ECDE).
“Their equitable share is for the development of village polytechnics and ECDE,” Dr Nyakang’o said. “I wouldn’t want to say much on this matter because the issue is subject to litigation. I hope the matter will be put to rest soon.”
The High Court in February suspended a deal between the Controller of Budget and the Council of Governors allowing county governments to continue issuing bursaries to institutions outside their scope.
