NAIROBI, Kenya — The State Department for Environment and Climate Change is on the spot after the Auditor General questioned the use of a Sh475.52 million grant meant for the 2023 African Climate Summit, warning the money may have been diverted from its intended purpose.
In her latest audit, Auditor General Nancy Gathungu revealed that Kenya signed a $3 million (Sh475.52 million) grant agreement with the African Development Bank on November 15, 2023—two months after the summit had already ended. The conference was held in Nairobi from September 4 to 8, 2023.
The funds, which were disbursed into a special account on January 3, 2024, were earmarked to cover expenses such as flights, hotel accommodation, and conference facilities for summit participants. They were also meant to finance follow-up adaptation compacts.
But the audit found glaring inconsistencies in the financial records. While the special account reconciliation statement reflected withdrawals of Sh330.24 million for summit activities, only Sh4.92 million was captured in the project’s official financial statements.
“The eligibility of the expenditure could not be confirmed,” Gathungu said, noting that the government had failed to explain why the funds were signed and released months after the event.
She further cautioned that the money “may have been utilised for expenditures other than activities provided for in the financing agreement.”
The report also noted that any unspent balances were supposed to be reimbursed to the African Development Bank, but no evidence of this was provided.
The revelations add to growing concerns over the management of public funds, with recent audits exposing financial lapses in multiple government entities.
