NAIROBI, Kenya – Kenyan lawmakers are pushing for reforms that could lift the veil of secrecy over confidential budgets managed by state security agencies, including the National Intelligence Service and the military.
The proposed amendments to the Public Audit Act, 2015, aim to empower the Auditor General to access these records without prior approval, a move lauded by accountability advocates.
The National Assembly Finance Committee, chaired by Molo MP Kuria Kimani, has endorsed the Public Audit (Amendment) Bill, 2024, which seeks to repeal sections of the current law that have been criticized for stifling transparency.
Among the targeted provisions is Section 40, which obliges the Auditor General to hold high-level consultations with security agencies before initiating audits to protect sensitive national security information.
Transparency International Kenya has been at the forefront of advocating for these changes, arguing that the existing law undermines the constitutional independence of the Auditor General.
“Introducing a requirement for the Auditor General to seek permission before conducting audits would hinder the office from doing its work,” said Sheila Masinde, the organization’s executive director.
Critics have also decried the law’s requirement that audits of security agencies undergo vetting by the Ethics and Anti-Corruption Commission (EACC), asserting that this compromises the integrity of the audit process.
Lawmakers’ push for reform gained momentum after a court ruling affirmed that auditors do not need prior approval to scrutinize public expenditure.
The ruling declared unconstitutional any provisions restricting the Auditor General’s ability to investigate state spending, stating, “A statute cannot seek to impose conditions on the Auditor General’s approaches.”
If passed, the amendments would allow the Auditor General to conduct unannounced audits of agencies with classified budgets, addressing longstanding concerns about financial opacity in government.
The reforms come amid growing scrutiny of confidential expenditures, often classified under “other operating expenses” in government budgets.
These opaque allocations, amounting to Sh15 billion this year for key offices such as the presidency and the police, have sparked fears of misuse.
Auditor General Nancy Gathungu has flagged numerous instances of unaccounted-for funds, including a recent case where the National Health Insurance Fund failed to justify Sh2.5 billion in “other expenses.”
Similar concerns were raised during impeachment proceedings involving Deputy President Rigathi Gachagua, which highlighted alleged misuse of secret budgets.
Former Auditor General Edward Ouko previously lamented the challenges of accessing these secretive votes.
The proposed amendments could pave the way for greater oversight and accountability.
The bill also grants the Auditor General the power to directly report suspicious transactions to anti-corruption agencies, including the EACC and the National Police Service.
This streamlined process would enable quicker action on fraud and misuse of public funds.
Additionally, the Auditor General could recommend barring companies implicated in corrupt procurement practices.
“These amendments promote collaboration between independent offices and enhance the fight against corruption,” Transparency International said in a statement.
The proposed amendments to the Public Audit Act, 2015, aim to empower the Auditor General to access these records without prior approval, a move lauded by accountability advocates.
The National Assembly Finance Committee, chaired by Molo MP Kuria Kimani, has endorsed the Public Audit (Amendment) Bill, 2024, which seeks to repeal sections of the current law that have been criticized for stifling transparency.
Among the targeted provisions is Section 40, which obliges the Auditor General to hold high-level consultations with security agencies before initiating audits to protect sensitive national security information.
Transparency International Kenya has been at the forefront of advocating for these changes, arguing that the existing law undermines the constitutional independence of the Auditor General.
“Introducing a requirement for the Auditor General to seek permission before conducting audits would hinder the office from doing its work,” said Sheila Masinde, the organization’s executive director.
Critics have also decried the law’s requirement that audits of security agencies undergo vetting by the Ethics and Anti-Corruption Commission (EACC), asserting that this compromises the integrity of the audit process.
Lawmakers’ push for reform gained momentum after a court ruling affirmed that auditors do not need prior approval to scrutinize public expenditure.
The ruling declared unconstitutional any provisions restricting the Auditor General’s ability to investigate state spending, stating, “A statute cannot seek to impose conditions on the Auditor General’s approaches.”
If passed, the amendments would allow the Auditor General to conduct unannounced audits of agencies with classified budgets, addressing longstanding concerns about financial opacity in government.
The reforms come amid growing scrutiny of confidential expenditures, often classified under “other operating expenses” in government budgets.
These opaque allocations, amounting to Sh15 billion this year for key offices such as the presidency and the police, have sparked fears of misuse.
Auditor General Nancy Gathungu has flagged numerous instances of unaccounted-for funds, including a recent case where the National Health Insurance Fund failed to justify Sh2.5 billion in “other expenses.”
Similar concerns were raised during impeachment proceedings involving Deputy President Rigathi Gachagua, which highlighted alleged misuse of secret budgets.
Former Auditor General Edward Ouko previously lamented the challenges of accessing these secretive votes.
The proposed amendments could pave the way for greater oversight and accountability.
The bill also grants the Auditor General the power to directly report suspicious transactions to anti-corruption agencies, including the EACC and the National Police Service.
This streamlined process would enable quicker action on fraud and misuse of public funds.
Additionally, the Auditor General could recommend barring companies implicated in corrupt procurement practices.
“These amendments promote collaboration between independent offices and enhance the fight against corruption,” Transparency International said in a statement.
