NAIROBI, Kenya — Auditor General Nancy Gathungu has flagged five government entities for failing to account for expenditure totaling Sh1.12 billion during the 2024/25 financial year, raising concerns over weak financial controls and accountability in public institutions.
In her latest audit report, Gathungu said the affected Ministries, Departments, and Agencies (MDAs) failed to provide documents and records to support payments amounting to Sh1,119,053,742, making it impossible for auditors to verify whether the expenditure was lawful and used for intended government purposes.
Among the institutions cited was the State Department for Foreign Affairs, which recorded unsupported expenditure of Sh470.4 million relating to trade and other payable amounts. The Judiciary was also flagged over unsupported employee costs amounting to Sh423 million.
The State Department for Social Protection and Senior Citizen Affairs came under scrutiny after auditors identified discrepancies involving Sh222 million transferred to the Kenya Social Economic Inclusion Project. The amount differed from revenue recognized in the project’s financial statements.
Meanwhile, the State Department for Culture, the Arts and Heritage was questioned over Sh3.6 million spent on domestic travel and subsistence without adequate supporting documentation.
“During the year under review, the audit revealed unsupported expenditure totalling Sh1,119,053,742 under Ministries, Departments and Agencies,” the report states.
Gathungu warned that the absence of supporting documents undermines the credibility of reported expenditure and exposes public funds to the risk of loss, misuse, wastage, and theft.
“In addition, failure by the entities to fully support payments casts doubt on the authenticity of the reported expenditure. It is also an indication of weak internal controls and governance in the affected entities,” she noted.
The Auditor General further observed that the failure to provide audit records contravenes Section 62 of the Public Audit Act, 2015, which requires public entities to furnish auditors with information needed to conduct audits. The law prescribes penalties of up to Sh5 million, imprisonment for up to three years, or both for non-compliance.
The report also highlighted widespread challenges in the management of public land, revealing that 18 government entities lacked title deeds and ownership documents for properties under their control.
The National Police Service (NPS) recorded the highest number of affected properties, with 1,704 parcels lacking ownership documents and 68 others facing encroachment or ownership disputes.
The Independent Electoral and Boundaries Commission (IEBC) was cited for 35 unregistered parcels of land and 25 additional parcels allocated by national and county governments without ownership documentation.
The Teachers Service Commission (TSC) was also flagged after auditors established that eight of its nine parcels of land lacked title deeds.
Other institutions affected include the Ministry of Defence, the State Department for Foreign Affairs, the State Department for Culture and Heritage, the State Department for Energy, the Judicial Service Commission (JSC), the State Department for Livestock Development, and the State Department for the Blue Economy and Fisheries.
Gathungu urged the Ministry of Lands, the National Land Commission (NLC), and the National Treasury to work together to regularize ownership of public assets and safeguard government property from encroachment and potential loss.
