Members of Parliament (MPs) have recommended the tender to audit the Office of the Auditor-General be done internationally in order to avoid potential conflicts of interest with local auditing firms.

Local audit firms have refused to bid for the tender citing potential conflicts of interest.

National Assembly Committee on Public Accounts Committee argues the law should be relooked at to allow the Accounting Officer of parliament to advertise the tender beyond the boundaries of Kenya.

“This way, we will have more audit firms and it would not feel like there is a conflict of interest when they are asked to bid to audit the Office of the Auditor-General,” said Butere MP Tindi Mwale, who chairs the committee.

Article 226(4) of the Constitution stipulates that the accounts of the Office of the Auditor-General shall be audited and reported on by a professionally qualified accountant appointed by the National Assembly. External audit services While moving a motion to approve the appointment of M/s PKF Kenya LLP to provide external audit services for the Office of the Auditor General (OAG) for the financial years 2022/23, 2023/24, and 2024/25, Mwale explained that the committee’s investigation into the tender process revealed that very few firms typically bid.

This time was no exception, with only two firms—PKF Kenya LLP and Nelson and Francis LLP—submitting bids, with PKF Kenya LLP ultimately winning the tender at a cost of Sh25.5 million.

“The apparent reason for this state of affairs has been that most of these independent audit firms shy away from professional distance having been engaged by the Office of the Auditor-General in other outsourced engagements,” said Mwale. He said Parliament had previously engaged PKF and was awaiting its report for the preceding years before submitting it to the House.

“As a committee, we are committed to providing thorough oversight of this important office to enhance its operational efficiency and ensure value for every coin appropriated by this House,” he stated.

The lawmaker emphasized the need for accurate audit reports to ensure the prudent use and monitoring of taxpayers’ funds. “

To achieve this, we must engage a reputable audit firm that can give us a true picture of public expenditure.

By supporting this report, we will enable PKF to audit the Office of the Auditor-General and provide the feedback and productivity we expect in the public sector,” he stated.

Funyula MP Ojiambo Oundo emphasized the need to explore alternative mechanisms, even if it requires extending the tendering and procurement process beyond Kenya’s borders, to ensure meaningful competition.