NAIROBI, Kenya – Twelve county governments failed to account for imprests worth Sh229.4 million in the 2023/2024 financial year, Auditor General Nancy Gathungu has revealed.
Her latest audit shows that some county officials held multiple imprests at the same time, in violation of the Public Finance Management (County Governments) Regulations, 2015, which require all temporary advances to be surrendered within seven working days of resuming duty.
Regulation 93(8) further bars the issuance of new imprests before earlier ones are fully cleared or recovered from the officer’s salary.
Turkana Tops List of Defaulters
The report lists Turkana as the worst offender, with Sh85 million in unaccounted funds. Other counties flagged include Samburu (Sh39.3 million), Mombasa (Sh25.8 million), Bungoma (Sh21.6 million), Tana River (Sh19.8 million), Embu (Sh12.8 million), Siaya and Nandi (Sh6.3 million each), Kisumu (Sh5.1 million), Nyandarua (Sh3 million), Busia (Sh1.3 million), and Kiambu (Sh801,440).
In addition, Sh28.6 million in imprests – Sh18.3 million in Kakamega and Sh10.3 million in Nyandarua – was not recorded in official registers, flouting Regulation 93(4), which requires complete and up-to-date imprest records.
Governance Gaps
Gathungu warned that the lapses point to deeper governance failures affecting the accuracy and reliability of county financial statements.
“The complex modern environment demands greater accountability, transparency, and effective governance as envisaged in Goal 16 of the Sustainable Development Goals,” she noted, urging counties to strengthen compliance with public finance laws.
Payroll and Staffing Breaches
Beyond unaccounted funds, the audit flagged serious payroll irregularities.
A review found that 22,893 county employees in 38 counties earned less than a third of their basic pay due to deductions – a steep rise from 10,518 the previous year.
While county executives blamed new statutory deductions under the Social Health Insurance Fund (SHIF), NSSF, and housing levy, the Auditor General stressed this contravenes Section 19(3) of the Employment Act, 2007.
On ethnic diversity, 33 counties had more than one-third of their workforce from a single ethnic group. Nyandarua topped the list at 96 per cent, followed by Elgeyo Marakwet at 95 per cent.
Kisii, Nyamira, Nandi, Kericho, and Nyeri each recorded 94 per cent, violating Section 7(2) of the National Cohesion and Integration Act, 2008.
Thirteen counties also failed to meet the legal requirement that at least 30 per cent of new hires come from communities other than the dominant ethnic group, as stipulated in Section 65(1)(e) of the County Governments Act, 2012.
Wage Bill Ceiling Breaches
Forty counties overshot the 35 per cent wage bill ceiling set under the Public Finance Management (County Governments) Regulations, 2015.
Kisii recorded the highest at 68 per cent of total revenue, followed by Taita Taveta at 66 per cent.
The Auditor General’s findings add to a growing list of red flags over the management of public resources in counties, underscoring persistent gaps in financial discipline, transparency, and compliance with the law.
