In Kiambu, the Auditor General highlighted irregular procurement of pharmaceuticals, irregular payment of pending bills, high contingent liabilities, and non-compliance with career progression guidelines. “The county executive directly procured 150,000 one-month-old chicks at a contract sum of Ksh 45 million. However, the contract, dated 8 March 2024 with the Kenya Agricultural and Livestock Research Organisation, lacked a contract number. Furthermore, there was no evidence that management reported this direct procurement to the Public Procurement Regulatory Authority (PPRA) within 14 days, as required for contracts exceeding Ksh 500,000,” the report stated
The Auditor General has uncovered widespread malpractices through which county government officials siphon hundreds of millions from devolved units. In the 2023-2024 report, the Auditor General exposed severe financial mismanagement and rampant corruption, which continue to undermine development programmes across county governments in Kenya.
The report, aimed at enhancing accountability, highlights irregularities and areas of concern regarding the use of public funds at the county level. It identifies misallocations, wastage of resources, lack of value for money in project implementation, and the loss of public funds as major threats to economic growth and sustainable service delivery.
Nancy Gathungu, the Auditor General, regretted that despite repeated audit reports exposing a lack of accountability and inadequate documentation to justify the use of public resources, failure to enforce necessary sanctions has allowed some accounting officers to evade responsibility. The compilation of audit reports assesses the financial management practices of each county government’s executive branch.
Mombasa County
In Mombasa, the audit report exposed major discrepancies in the financial statements submitted for audit. These included glaring anomalies, unexplained voided transactions, variances in cash and cash equivalents, and inconsistencies between cash book balances and reported bank balances.
“The retention money amounts of Ksh 11,643,945 and Ksh 22,057,499 owed to contractors were erroneously classified as construction and civil works, and other payments, respectively. The expenditure for street lighting amounting to Ksh 13,744,900 was misclassified as office furniture and equipment instead of civil works,” a section of the report stated. Other issues flagged in Mombasa included unsupported domestic travel subsistence, unresolved prior-year matters, pending bills, non-compliance with wage bill regulations, and irregular staff promotions.
Kwale County
In Kwale, the Auditor General raised concerns over inaccurate expenditure on asset acquisition, unsupported voided transactions, irregular charges on cash votes, and non-compliance with ethnic composition regulations in recruitment. The county also failed to meet the required threshold for employing persons with disabilities.
“The county recruited 116 employees during the year. However, no persons with disabilities were hired, despite the requirement that at least 5% of positions be reserved for persons with disabilities, as stipulated in part B.23(2) of the Human Resource Policies and Procedures Manual for the Public Service, 2016,” Gathungu noted. Additionally, Kwale County was found to have irregularly paid Ksh 4 million to the Council of Governors for hospitality supplies and services during the Devolution Conference.
Kilifi County
Kilifi County was criticised for stalled projects, inaccuracies in pending bills, unsupported emergency relief payments, irregular human resource management practices, and the retention of employees beyond retirement age. Similar governance and financial challenges were unearthed in Tana River, Lamu, and other counties, which have been blamed for stalling development and facilitating ineffective service delivery.
General County-Wide Issues
The report further revealed that many counties processed salaries outside the Integrated Payroll and Personnel Database, provided unsupported operational bank balances for health facilities, incurred unverified legal service expenses, failed to establish county budget and economic forums, and allocated excessive budgets to county assemblies. Some counties also suffered conflicts in legal frameworks, while others failed to submit financial statements for Level Four hospitals.
Kiambu County
In Kiambu, the Auditor General highlighted irregular procurement of pharmaceuticals, irregular payment of pending bills, high contingent liabilities, and non-compliance with career progression guidelines.
“The county executive directly procured 150,000 one-month-old chicks at a contract sum of Ksh 45 million. However, the contract, dated 8 March 2024 with the Kenya Agricultural and Livestock Research Organisation, lacked a contract number. Furthermore, there was no evidence that management reported this direct procurement to the Public Procurement Regulatory Authority (PPRA) within 14 days, as required for contracts exceeding Ksh 500,000,” the report stated.
Additionally, the county procured grafted mango, pawpaw, and orange seedlings, as well as super napier grass cuttings, at a cost of Ksh 6.12 million from a vendor through direct procurement, contrary to procurement laws.
Murang’a County
Murang’a County was cited for anomalies in project implementation, unsupported hospitality expenses, unreconciled pending bills, lack of internal audit reports, and delays in key infrastructure projects.
“The county executive incurred an expenditure of Ksh 66,212,341 on legal cases in the year under review. However, the management had not established a legal department with qualified staff to handle such matters. Consequently, the value for money in these legal expenses could not be confirmed,” Gathungu stated.
Nairobi County – School Feeding Programme
The Auditor General also flagged accountability issues in the implementation of Governor Johnson Sakaja’s Dishi na County Nairobi school feeding programme. According to the report, there was no proper accountability for the funds used, and the county lacked established guidelines for managing donations received.
“The county executive entered into a contract with Food for Education on 5 December 2023 for the provision of school meals at a rate of Ksh 25 per plate. However, it was noted that learners directly paid the organisation Ksh 5 per plate, meaning the county should have paid Ksh 20 per plate as per the contract. Instead, the implementer ended up receiving Ksh 30 per plate, exceeding the contracted amount,” Gathungu noted.
The report paints a grim picture of widespread financial mismanagement, corruption, and lack of accountability in county governments, which continue to hinder service delivery and economic growth.
