NAIROBI, Kenya – A report by Auditor General Nancy Gathungu has revealed alarming levels of financial mismanagement across Kenya’s county assemblies, highlighting a pervasive culture of wasteful spending, unapproved allowances, and questionable procurements that have left taxpayers bearing the brunt of the losses.
The 2023-24 financial year audit paints a grim picture of the systematic abuse of public funds, with county assembly members (MCAs), Speakers, and clerks at the center of the mismanagement.
The report underscores a failure to account for expenditures, with several counties caught in questionable practices that include illegal payments, unsupported expenses, and procurements that may border on fraud.
One of the most egregious examples comes from Taita Taveta County, where Sh229.08 million was spent on domestic travel and subsistence allowances for MCAs and staff.
These expenditures were flagged by the Auditor General as unsubstantiated, with Sh10.83 million paid to officials at flat rates ranging from Sh3,000 to Sh19,000 — all without approval from the Salaries and Remuneration Commission (SRC).
Even more concerning, Sh3.05 million was disbursed for allowances without any receipts from the beneficiaries, making it impossible to verify the legitimacy of the claims.
Wajir County also came under heavy scrutiny, with the audit revealing overpayment of mileage allowances to MCAs amounting to Sh11.19 million.
Despite clear guidelines on how much mileage could be reimbursed, an analysis of the claims showed that the county had exceeded the approved limits by a significant margin.
In total, Wajir MCAs received Sh91.55 million in mileage allowances, with the overpayment adding insult to injury.
The county also overshot its annual budget by Sh1.19 billion, violating legal provisions that cap expenditure at no more than 7% of the total revenue.
Further issues in Wajir included a dubious Sh2.2 million procurement for advertising services, which appeared to be single-sourced and lacked proper documentation, raising questions about the transparency of the process.
Marsabit County was also found guilty of financial negligence, with a wasteful expenditure of Sh4.03 million for a report-writing workshop in Isiolo, a move that violated National Treasury circulars.
The county was also criticized for its ongoing construction project of the assembly chambers, where Sh8.13 million is tied up in a stalled project initially budgeted at Sh344.20 million, and for spending Sh900,000 on the Speaker’s accommodation after the SRC deadline for such arrangements had expired.
In Isiolo County, the audit uncovered Sh4.49 million allegedly paid as ‘responsibility allowances’ to county assembly members, with no supporting documentation such as attendance registers or leadership position lists.
The report also flagged Sh4.42 million spent on two retreats held just 10 kilometers away from the county, breaching SRC guidelines that restrict daily subsistence allowances for travel within a 50-kilometer radius.
Meanwhile, Makueni County was found to have paid MCAs allowances of between Sh50,000 and Sh70,000 for oversight activities, far exceeding the approved rates by the SRC.
In addition, the county allocated Sh10 million to acquire land for the construction of the Speaker’s residence, and another Sh19.77 million for a perimeter wall.
However, upon inspection, it was found that the septic tank on the property was already full and the perimeter wall had developed cracks.
The Nyeri County Assembly raised eyebrows with a hefty Sh10 million spent on air tickets for MCAs and staff, with Sh9.95 million going to a single-sourced company.
This raised concerns about transparency and potential favoritism in the procurement process.
The report also uncovered troubling ethnic imbalances in staffing across counties such as Murang’a, Kirinyaga, and Kiambu, where one community dominated the workforce, casting doubts on the fairness of recruitment practices.
Elgeyo Marakwet and Nandi faced scrutiny over questionable foreign trips, including Sh2.4 million spent on a trip to Dubai and Sh10 million spent on MCAs’ travel in Nandi.
The Nandi County Assembly also failed to provide supporting documents for training expenses amounting to Sh2.5 million.
In Homa Bay, the county assembly’s leadership was heavily criticized for disbursing Sh40.63 million for various expenses without providing the necessary vouchers for audit, further undermining accountability and transparency.
The findings in Gathungu’s report highlight the urgent need for improved oversight and accountability in county governments.
The misuse of public funds not only undermines the trust of taxpayers but also hinders the effective delivery of services at the local level.
The report serves as a stark reminder of the systemic challenges facing the management of public finances in Kenya and the critical need for reforms to safeguard taxpayers’ money.
