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Auditor-General Faults State House Over Incomplete Nairobi Small Claims Courts

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NAIROBI, Kenya – The Office of the President has come under scrutiny for failing to complete the construction of Small Claims Courts in Nairobi, despite allocating millions of shillings to the projects during the now-defunct Nairobi Metropolitan Services (NMS) era.

In her latest 2023/2024 audit report, Auditor-General Nancy Gathungu revealed that the projects—meant to improve access to justice in low-income neighbourhoods—remain largely stalled, even after responsibility was formally handed to the Judiciary via a deed of novation signed on June 29, 2023.

“The projects had been initiated under NMS as part of an intervention to expand access to justice within identified low-income areas. However, a review of the project’s progress revealed several issues,” the audit states.

Courts in Limbo

The report spotlights stalled projects in Dagoretti, Kasarani, Mihango, and Huruma, with physical verifications showing minimal progress and evidence of neglect and vandalism in some sites.

At Mihango, the court was only 20% complete as of October 2024—a level achieved under NMS.

A fresh tender floated in February 2024 was terminated in March after all bids were deemed non-responsive. No new procurement had begun by the time of the audit.

In Kasarani, a contract worth KSh73.2 million was awarded in March 2024, but the site also remained at 20% completion, with no contractor present during verification.

The audit noted visible vandalism, including damage to steel reinforcement bars.

The Huruma court fared slightly better, with 60% of the work done. However, construction slowed after the Judiciary issued a termination notice to the contractor on September 25, 2024, citing delays. At the time of inspection, the site was deserted.

“The delays may lead to cost escalations, and value for money for the resources already spent may not be realised,” warned Gathungu.

Irregular Expenditures and Salary Violations

In addition to stalled infrastructure, the Office of the President was flagged for unlawful salary deductions.

Payroll records showed 20 staff earning less than one-third of their basic salaries, breaching Section 19(3) of the Employment Act, which caps deductions unless authorized by the labour minister.

The audit also questioned vague confidential expenditure, citing the transfer of funds for unspecified security operations to another agency.

Gathungu called for clear guidelines to define what qualifies as security-related spending and which institutions are allowed to incur such costs.

“There is need for stronger internal controls, including post-operation financial summaries, to improve transparency and curb misuse of public funds,” she added.

The incomplete courts were envisioned as a solution to decongest Nairobi’s judicial system and bring justice closer to underserved communities.

Their delay not only affects access to justice but also risks financial losses through stalled contracts and potential re-tendering.

The Auditor-General has now recommended urgent remedial action, including re-evaluation of project timelines, stricter contract supervision, and improved financial oversight.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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