NAIROBI, Kenya – Auditor-General Nancy Gathungu has raised significant concerns about the viability of President William Ruto’s Bottom-up Economic Transformation Agenda (BETA), warning that systemic inefficiencies and financial shortfalls could derail its success.
In her latest audit report submitted to the National Assembly, Gathungu identified critical gaps in the implementation of the agenda’s five pillars: agricultural transformation, micro, small, and medium enterprises (MSMEs), healthcare, housing and settlement, and the digital superhighway and creative industries.
As a cornerstone of the BETA plan, agriculture faces serious challenges.
The audit flagged irregularities in the fertilizer subsidy program, including the supply of substandard fertilizer, irregular procurement, and missing documentation.
In some cases, fertilizer was procured but never delivered, undermining efforts to enhance food security and support small-scale farmers.
“The audit reports for the financial year 2023/2024 for the State Department of Agriculture and related State-owned enterprises reveal challenges that will hinder the performance of this pillar,” Gathungu stated.
Concerns were also raised about inaccuracies in the farmer distribution list and delays in completing projects such as grain dryers and storage facilities.
The government’s plan to establish County Aggregation and Industrial Parks (CAIPs) has also faced significant setbacks.
While Sh4.5 billion was allocated for the initiative in the 2023/2024 financial year, only Sh1.52 billion has been disbursed, leading to delays in construction and operationalization.
“Counties are facing challenges completing the constructions, which will further delay the achievement of the objectives,” Gathungu noted.
The agenda’s focus on empowering MSMEs is faltering due to mismanagement and inefficiencies in government-backed funds such as the Hustler Fund, Uwezo Fund, Women Enterprise Fund, and Youth Enterprise Fund.
The audit revealed discrepancies in loan allocations and non-performing loans, further threatening the growth and sustainability of MSMEs.
The affordable housing programme, aimed at constructing 200,000 units annually, is another pillar in trouble.
The report pointed to funding shortfalls, slow procurement, financial mismanagement, and land ownership disputes as major hindrances.
“The programme may be unable to achieve its target of 200,000 units per year, delaying the realisation of the housing agenda and its contribution to economic transformation,” the report states.
Even with the introduction of the housing levy to finance the project, inadequate funds have caused delays.
A comprehensive audit of the housing programme is planned for the 2025/2026 financial year.
Despite allocating Sh204.5 billion to healthcare and launching the Social Health Insurance Fund (SHIF) to cover 15 million Kenyans, the sector continues to grapple with high costs, limited rural outreach, and unresolved governance issues.
“Systemic governance and structural issues threaten the sector’s ability to provide seamless, accessible, and quality care, underscoring the need for urgent reforms and strategic investments,” Gathungu warned.
