The report, which scrutinises the financial statements of County Assemblies, points to systemic irregularities, stalled projects, unsupported expenditures, and blatant violations of public finance laws across multiple counties.
At the heart of the report are stalled and incomplete development projects across 15 County Assemblies, with a combined contract value of KSh 3.5 billion. Seven counties reported completely abandoned projects worth KSh 157.6 million, while three others have ongoing works valued at KSh 127.8 million, many of which lack proper oversight and documentation.
The delays have led to penalty charges. These issues are primarily due to the failure to issue completion certificates, cost escalations, and severe inefficiencies in the delivery of public infrastructure. The Auditor General also found that 20 County Assemblies incurred unsupported expenditures amounting to KSh 488.7 million. These include: Migori County Assembly – Unsupported compensation and cash transfers of KSh 118.3 million, Nairobi County Assembly – Legal fees of KSh 62.5 million, not backed by supporting documentation.
- Further still, six assemblies had unverified balances totalling KSh 760 million, with significant entries such as:
- Vihiga County – Unsubstantiated IFMIS cash transactions amounting to KSh 289.8 million
- Nairobi County– Unsupported prior year adjustments worth KSh 329.2 million
- Baringo County – Unverified borrowings of KSh 20.3 million
Gathungu has warned that the absence of documentation casts doubt on the reliability and credibility of financial records maintained by these assemblies. Seven assemblies, including Tharaka Nithi, Nyandarua, Migori, Homa Bay, and Nairobi, collectively failed to account for KSh 420.9 million in outstanding imprests , a direct violation of Regulation 93(5) of the Public Finance Management (County Governments) Regulations.
The report exposes a litany of questionable financial practices in various assemblies:
Overpayment of mileage allowances: Members of the Wajir County Assembly received excess payments totalling KSh 11.2 million
Backdated allowances: Nandi County Assembly recorded KSh 77.1 million as end-of-year transactions, despite being incurred earlier
Late transactions: Baringo County Assembly processed KSh 33.8 million in spending after the fiscal year’s close
In total, KSh 191.2 million was identified as irregular expenditure across 16 County Assemblies. The top offenders included:
Laikipia County Assembly – KSh 59.9 million
Vihiga County Assembly – KSh 36.7 million
Makueni County Assembly – KSh 32.7 million
Procurement procedures were found wanting in 19 County Assemblies, where the audit uncovered:
Failure to use the mandatory e-procurement system
Illegal direct procurement methods
Expired tender validity periods
Lack of contract publication as required by law
Improper payments for legal fees, rent, and travel services
“These deficiencies compromise transparency, value for money, and adherence to regulatory guidelines,” the report notes.
According to Gathungu, the issues mirrored similar patterns of mismanagement in County Executive branches. The report describes the financial conduct of County Assemblies as marred by inaccuracies in reporting, inadequate documentation, poor internal controls, and broad non-compliance with financial regulations.
At a time when ordinary Kenyans are grappling with rising living costs, fuel prices, and job losses, the revelations of misused public funds by those entrusted with local governance are deeply concerning.
The Auditor General’s report calls for urgent corrective action, increased oversight, and accountability measures to restore fiscal discipline and public trust in county governments.
[/full]
