NAIROBI, Kenya – An audit of county governments has revealed how more than Sh15 billion was squandered on legal fees, foreign travel, and allowances in over 20 devolved units during the 2023/24 financial year, even as essential public services remained neglected.
The Auditor General Nancy Gathungu, in a newly released report, flagged a pattern of irregular spending, unsupported claims, and a systemic failure to enforce accountability measures, contributing to wastage, incomplete projects, and swelling pending bills.
“Despite numerous reports indicating a lack of accountability…failure to apply the requisite sanctions has resulted in some accounting officers not adequately accounting for public resources,” the report reads in part.
Nairobi Tops List with Sh6.2 Billion Legal Bill
Nairobi County emerged as the most egregious offender, with a staggering Sh6.2 billion owed to just four law firms—nearly a third of the county’s Sh21.4 billion in pending bills.
The audit attributes this massive liability to cancelled contracts, delayed payments, flawed procurement, and unresolved employment disputes that led to expensive litigation.
“The judgments entered against the County Executive resulted in a high cost of litigation and interests,” the report notes.
While the capital has 350 pre-qualified lawyers, only eight were handed 65 cases, raising red flags about favoritism or mismanagement.
The report questions the opaque criteria used in assigning these legal briefs.
Payroll Fraud and Duplicate Payments
The audit also uncovered deep irregularities in Nairobi’s payroll, including duplicate supplier payments amounting to Sh140 million, and suspicious salary transactions involving thousands of employees.
In April, May, and June 2024, auditors found that 7,777, 6,123, and 6,803 officers respectively shared bank account numbers and agent codes, a likely indicator of ghost workers or collusion.
Other payroll anomalies include:
- 74 employees with identical names
- Six staff listed with zero salary
- Sh5.3 million in salary overpayments
- Sh148.6 million disbursed without tax deductions
- Staff paid above approved salary scales, causing an Sh8.4 million overpayment
Mombasa Faces Sh67 Million in Legal Liabilities
Mombasa County was also cited for Sh67.5 million in legal expenses linked to unresolved disputes.
In one extreme case, a delayed payment of Sh8 million to a vehicle supplier ballooned into Sh68.6 million after court-awarded costs and interest.
The report ties this escalation to the executive’s persistent failure to comply with court rulings, exposing the county to avoidable financial risk.
A Systemic Accountability Crisis
Across the board, the audit paints a grim picture of poor financial governance in the counties, where mismanagement, unchecked legal costs, and administrative opacity continue to erode public confidence and derail service delivery.
The Auditor General warns that unless sanctions are applied and financial discipline enforced, such malpractice will continue to undermine devolution and pose a threat to local economic stability.
