NAIROBI, Kenya— The Judiciary is facing scrutiny after Auditor General Nancy Gathungu’s latest report exposed Sh8.43 billion in unaccounted third-party deposits, raising concerns over missing funds, theft, and poor financial accountability.
The audit, covering the financial year ending June 2024, details serious lapses in the Judiciary’s financial management, including misappropriated deposits, missing records, and unpaid bills that continue to pile up.
According to Gathungu, Sh352.9 million linked to 72 court stations remains trapped in former district treasuries, despite the Judiciary gaining financial independence under the 2010 Constitution.
“The balance includes general deposits for various court stations amounting to Sh7.32 billion, out of which Sh352.9 million relates to funds held by former District Treasuries that have not been paid to the Judiciary,” Gathungu stated.
Despite a formal request to the National Treasury in December 2021 to confirm the status of these funds, no acknowledgment has been received to date, further deepening concerns over the stalled transfers.
Beyond unaccounted deposits, the audit exposes a Sh150.75 million theft involving Judiciary staff at courts in Embu, Malindi, Molo, Nakuru, and the Judiciary headquarters.
The funds were siphoned in the 2017/2018 financial year and earlier, yet remain unrecovered.
“As previously reported, deposits amounting to Sh150.75 million were lost through theft by staff members, and despite investigations by the Directorate of Criminal Investigations (DCI) and the Assets Recovery Agency (ARA), the funds had not been recovered by June 2023,” Gathungu noted.
With no confirmation on the accuracy or completeness of the remaining Sh8.43 billion in third-party deposits, questions linger over whether more funds could have been lost.
The Judiciary’s financial woes are compounded by its failure to submit bank statements for auditing and neglecting internal audits on third-party deposits.
The lack of transparency has made it difficult for auditors to verify the actual financial position of the institution.
“The management did not submit copies of monthly and quarterly bank statements for audit, and no internal audits were conducted on the deposits, making it impossible to confirm their accuracy,” Gathungu said.
The audit further flagged Sh872.1 million in unpaid bills, which the Judiciary carried forward to the 2024/2025 financial year, straining its budgetary allocations.
Of this, Sh82.4 million dates back to 2022/2023 and earlier, while a staggering Sh791.4 million (91%) was incurred in 2023/2024 alone.
The trend of rolling over pending payments raises concerns about the Judiciary’s ability to manage its budget effectively.
The flagged third-party deposits include fines, bail, security payments, compensation, and auction proceeds—funds collected by courts but not classified as Judiciary revenue unless forfeited or refunded.
With millions still unaccounted for and a backlog of unpaid bills, Gathungu has called for urgent financial reforms to enhance accountability and ensure proper management of public funds.
