The Office of the Controller of Budget (CoB) has issued a directive suspending the approval of bursary fund withdrawals by county governments, pending full compliance with national legal and constitutional requirements.
In a circular dated October 13, 2025, and addressed to all County Executive Committee Members for Finance, Controller of Budget Dr Margaret Nyakang’o stated that her office will not approve the withdrawal of funds for bursary issuance until counties demonstrate compliance with OCoB Circular No. 1 of 2025 and Section 26 of the Intergovernmental Relations Act.
“We have observed continued violation of the earlier circular as counties seek to issue bursaries for learners in institutions under the National Government,” Dr Nyakang’o said.
“This office shall not approve any withdrawals unless there is clear proof of legal compliance.”
The directive clarifies that education support and bursary programs fall under the national government’s functions, as outlined in Part I (Section 16) of the Fourth Schedule of the Constitution.
For counties to legally undertake these programmes, they must first complete a formal intergovernmental transfer process and secure approval through gazetting by both the National Assembly and the respective County Assembly.
The circular also notes that while some counties have entered into Intergovernmental Partnership Agreements (IPAs), many have failed to meet the required procedural and legal standards.
“Some counties continue to act outside the law, treating bursaries as political tools rather than structured educational support mechanisms,” said a senior OCoB official who requested anonymity.
The move follows a High Court ruling linked to Petition No. E012 of 2024, which affirmed that counties must adhere to existing intergovernmental frameworks before disbursing education-related funds.
Civil rights advocate and serial petitioner Laban Omusundi, who has long campaigned for accountability in bursary allocation, welcomed the directive, saying it reinforces his petition’s objective of streamlining educational support in Kenya.
“This is a victory for fairness and transparency,” Omusundi said.
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“For years, bursaries have been used as instruments of favouritism, benefiting the politically connected instead of the needy.”
“We are not opposing bursaries,” he clarified, “but insisting that they be managed under a unified national education support framework that guarantees equal opportunity for every child.”
Omusundi further urged counties to act swiftly to meet compliance requirements to avoid disadvantaging learners.
“County governments must follow the law and expedite intergovernmental agreements so that students depending on bursaries do not suffer delays,” he added.
Education stakeholders have lauded the move as a step toward curbing the misuse of public funds.
The Controller of Budget has emphasised that her office remains committed to promoting prudent utilisation of public funds while ensuring that education financing aligns with constitutional mandates.
“Our goal is not to deny learners support,” Dr Nyakang’o reiterated. “It is to ensure that every shilling spent follows the law and benefits the intended child.”
By Joseph Mambili
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