NAIROBI, Kenya – The National Treasury has issued a directive requiring all State Departments, State Corporations, and Semi-Autonomous Government Agencies (SAGAs) to conduct a comprehensive audit of all imprests issued during the 2024/2025 financial year, as part of the government’s push to achieve a Zero Fault Audit status.
In a circular signed by Treasury Principal Secretary Chris Kiptoo, Accounting Officers have been ordered to ensure their Internal Audit Functions are adequately resourced and supported to carry out the exercise.
The audits are expected to assess compliance with the Public Finance Management (PFM) Act and regulations, and ensure proper use of public funds.
The move follows concerns raised during a high-level meeting involving Principal Secretaries from key ministries and departments.
It was established that failure to address internal control gaps could derail efforts to strengthen public financial integrity.
Among the ten directives issued are: the full operationalization of Public Finance Management Standing Committees, establishment of audit committees, and adoption of Institutional Risk Management Policy Frameworks.
Heads of Internal Audit Units have also been designated as principal liaison officers during external audits.
“All Accounting Officers must ensure that Audit Committees are duly established in accordance with existing legal and policy guidelines.”
Audit reports are to be submitted electronically to the Internal Auditor-General by August 8, 2025, with hard copies delivered to the respective Heads of Internal Audit Units. A standard template and terms of reference have been provided to guide the process.
