NAIROBI, Kenya – Several government ministries received Sh5.03 billion irregularly from the Contingencies Fund, despite the money being meant for urgent and unforeseen expenditures, Auditor-General Nancy Gathungu has revealed in a new report.
The audit, covering the financial year ending June 2024, highlights instances where the funds were used for non-urgent expenses, past events, and even expenditures that had already been budgeted for in the supplementary budget.
The findings raise concerns over possible financial mismanagement and lack of oversight in the handling of public funds.
The Contingencies Fund, established under Article 208 of the Constitution, is designed to address emergencies and unexpected expenditures.
It draws money from the Consolidated Fund, and each withdrawal must be justified by the National Treasury Cabinet Secretary.
However, Gathungu’s report suggests that these rules were flouted.
One of the most significant irregular allocations flagged in the report is a Sh3.8 billion expenditure by the State Department for Arid and Semi-Arid Lands (ASALs).
The funds were disbursed between December 2023 and June 2024, but the audit found no justification for why the department used the Contingencies Fund instead of its allocated supplementary budget.
“No explanation was provided to justify the funding of the expenditure from the fund, yet the State Department had included the activities in the approved supplementary budget. In the circumstances, the propriety of the expenditure could not be confirmed,” Gathungu stated in the report.
The report also flagged Sh130 million in irregular withdrawals across three other State Departments: Sh30 million for the State Department for Public Works, Sh65 million for Crop Development, and Sh35 million for Livestock
According to Gathungu, these expenditures did not meet the strict legal threshold for emergency funding as prescribed by the Public Finance Management Act, 2012.
In addition, another Sh1.07 billion was disbursed to three ministries whose expenditure returns were not provided for audit.
These include Sh500 million for the Ministry of Defence, Sh500 million for the State Department for Internal Security and National Administration, and Sh70 million for the State Department for Irrigation
“In the circumstances, the validity of the amount disbursed from the Fund of Sh1,070,000,000 could not be confirmed,” Gathungu noted.
Overall, the audit report indicates that Sh6.53 billion was advanced to various Ministries, Departments, and Agencies (MDAs) under the guise of urgent expenditures.
However, the findings suggest that a significant portion of this money was used improperly.
The revelations raise serious concerns about financial accountability within the government, with the Auditor-General questioning the Treasury’s role in approving these allocations.
The report calls for stricter adherence to financial management laws to prevent misuse of public funds.
