NAIROBI, Kenya — A county audit has uncovered that Nairobi County officials quietly deposited more than Sh151 million into a previously undisclosed bank account, raising serious questions over transparency, accountability, and compliance with public finance laws.
According to the Auditor-General’s report for the financial year ending June 2025, the account — named “NCC Imprest Operations Account” — was opened in November 2024 at a local bank without formal approval, declared signatories, or documentation explaining its purpose.
The audit found that the account bypassed established county public finance systems that govern revenue collection and expenditure, with deposits beginning immediately after its creation.
Records reviewed by auditors show that a supplier transferred Sh98.1 million on November 25, 2024, followed by a further Sh53.5 million on January 22, 2025. After bank charges, the account balance stood at Sh151.6 million as of June 30, 2025. However, the funds were never reflected in Nairobi County’s official financial statements.
“The authority to open the account was not provided, and there was no justification provided for establishing an imprest operations account,” the Auditor-General stated. “Further, the signatories to the account were not disclosed, and no explanation was provided for operating an expenditure account that only received revenue.”
Although labelled an expenditure account, auditors found that it only received large deposits and had no supporting invoices, contracts, or explanations for the payments. No cash book, bank reconciliation statements, or documentation from the remitting entity were provided to confirm the nature of the receipts.
“The receipts could not be confirmed as no supporting invoices from the remitting entity or corresponding statements were provided,” the report said, adding that the funds were effectively kept outside public oversight.
The findings come amid broader concerns over Nairobi County’s financial management. Auditors also flagged weaknesses in tracking public funds relating to receivables and foreign travel expenditure.
Of the Sh798 million reviewed under travel and related expenses, at least Sh16.4 million lacked basic supporting documents such as travel approvals, boarding passes, visas, attendance records, or post-trip reports.
The audit identified cases where per diems were paid beyond event dates, accommodation costs were settled despite sponsor coverage, and unauthorised rates were applied.
One notable case involved more than Sh7.2 million spent on a sustainability training in Singapore in February 2025. Auditors said there were no tickets, visas, insurance documents, or procurement records, casting doubt on whether the trip took place.
Additional weaknesses included advance payments before travel, delayed submission of documents, repeated procurement of services already under contract, weak imprest controls, and Sh16 million in unverified receivables. The county was also faulted for failing to account for bad and doubtful debts, a lapse auditors warned could inflate both receivables and total assets.
Under the Public Finance Management Act and Article 201 of the Constitution of Kenya, 2010, public funds must be managed in a transparent, accountable, and responsible manner, with all revenues paid into officially designated accounts and fully disclosed.
On Thursday, senior Nairobi County officials appeared before the County Assembly’s Public Accounts Committee (PAC) to respond to the audit findings.
PAC chair Chege Mwaura (Ngara) said the hearings are aimed at establishing responsibility and restoring public confidence in the management of county finances.
“It is important for Nairobi residents to understand how their taxes are being spent,” Mwaura said, adding that the committee has worked closely with the Auditor-General’s office to summon officials implicated in the report.
The outcome of the hearings could determine whether the matter is escalated to investigative agencies for possible administrative or criminal action.
