NAIROBI, Kenya – The government has directed the immediate enforcement of financial surcharges against public officials found responsible for the loss of public funds, in a renewed effort to curb corruption and mismanagement in state entities.
In a directive issued by the Chief of Staff and Head of Public Service, Felix Koskei, all accounting officers across government ministries, state corporations, and independent agencies are required to recover funds lost due to negligence, fraud, or unauthorized expenditure.
The move follows concerns raised by President William Ruto over recurring financial mismanagement flagged in the Auditor General’s reports.
“The President has flagged the urgent need for prudent, responsible, and effective management of public resources,” Koskei stated in the directive.
The Cabinet, in its meeting on September 17, 2024, approved the implementation of surcharges in accordance with Articles 226(5), 201(d), and 232(b) of the Constitution and the Public Finance Management Act, 2012.
Under this directive, any accounting officer who fails to comply with financial management regulations, allows unlawful or unauthorized expenditures, undermines financial controls, or neglects to settle approved bills despite available funds, will be subject to financial penalties.
Additionally, implicated officials will face disciplinary action and potential investigation by relevant statutory bodies.
The Auditor General’s annual reports have repeatedly uncovered cases of waste, fraud, and unauthorized spending.
The government’s new approach aims to curb such financial leakages by enforcing accountability at all levels.
The directive will ensure that public officials whose decisions or inaction lead to financial losses will be held personally accountable, either through direct reimbursement or legal action.
All government institutions are required to surcharge culpable officials for any mismanagement of public funds, take disciplinary action against those implicated in audit reports, refer serious cases to investigative and prosecutorial agencies, develop structured procedures for continuous recovery of lost funds, and conduct staff training on financial accountability.
The directive underscores the government’s commitment to enforcing fiscal discipline under the Bottom-Up Economic Transformation Agenda (BETA).
“Accounting officers must act decisively to eliminate financial leakages and uphold integrity in public service,” Koskei stated.
Koskei emphasized that the directive is part of the Public Service Zero Fault Audit Status Campaign, which aims to instill fiscal discipline across all government entities.
To ensure compliance, accounting officers must submit reports detailing actions taken by April 14, 2025.
Before any surcharges are imposed, officials will be granted due process to ensure fairness, according to the directive.
