Kenya Kwanza government is a crime scene, says Gathungu
By Mercy Mwai, July 26, 2025President William Ruto’s government is a crime scene. That is what Auditor-General Nancy Gathungu has been saying.
With the 2027 elections not far from sight, government offices — like supermarkets during protests — have become a looting spree as bureaucrats scramble for state coffers.
Irregular and unaccounted for expenditures, stalled projects and loss of monies amounting to billions of shillings are some of the issues rocking a number of Ministries, Departments and Agencies (MDAs).
A scan through reports of the Auditor General, Nancy Gathungu, for the financial year 2023/2024 has, in particular, revealed how Projects started by about 24 Ministries and state departments worth a whopping Ksh37.92 billion have stalled.
The report has fingered accounting officers for not adequately accounting for the management and use of public resources despite numerous reports indicating lack of accountability and documents to support the legality and effectiveness in the use of public resources.
It adds that lack of action and sanction from the accounting officers has also led to fiscal indiscipline, including misallocations, wastage of resources, lack of value for money in implementation of projects and loss of public funds, thereby negatively impacting development programmes.
Says Gtahungu: “There are instances where some Accounting Officers are in breach of Section 62 of the Public Audit Act, 2015 by failing to adequately prepare for audit which is exhibited by inaccuracies in financial statements presented for audit, lack of requisite supporting documents, several revisions of financial statements and, in some cases, lack of cooperation with the auditors during the audit process.”
For instance, the report raises concerns over the withdrawals of Ksh23.6 billion by MDAs under Article 223 of the Constitution.
She further regretted that an expenditure totalling Ksh10.2 billion was incurred in the 2022/2023 financial year, comprising amounts of Ksh4 billion and Ksh6.2 billion incurred on maize
The flour subsidy programme and acquisition of Telkom (K) shares by the State Department for Crop Development and the National Treasury, respectively, using Article 223, were not approved or appropriated as required.
Article 223 of the Constitution stipulates that the National Government is authorised to allocate funds that have not been appropriated under specific circumstances if the amount appropriated for any purpose under the Appropriation Act is insufficient or a need has arisen for expenditure for a purpose for which no amount has been appropriated; and Money has been withdrawn from the Contingencies Fund.
Reads the report: “The Public Finance Management Act, 2012 should therefore be amended to provide guidelines on the action to be taken where expenditure incurred under Article 223 is not approved by the National Assembly.”
With regards to the State House, which incurred expenditures and transferred funds to a Government Agency for confidential security operations, the report says that there is a need to enhance accountability of confidential expenditures through review of the Regulations to clearly define entities eligible for confidential security-related expenditures and to specify what constitutes security-related operations.
Reads the report: “The measures will strengthen governance, foster trust, and ensure funds are utilised responsibly without compromising State security.”
In the security sector and specifically the National Police Service (NPS), a scan through the audit report has revealed anomalies in the NPS and Kenya Prisons Service (KPS) Ksh5 billion insurance for the officers.
Gathungu regretted that there were anomalies in the entire contract despite it being extended for a further three months to March 2024 at a premium of Sh 1.2 billion.
The cover, which covered officers beginning January 1, 2023, to December 31, 2023 and which catered for 141,961 persons (NPS 109,557 and KPS -32,404), comprised of the Group Life Cover, Work Injury Benefits Act (WIBA) and Group Personal Accident Cover (GPA).
Reads the report: “However, a review of insurance records revealed anomalies in various premiums.”
The State Department for Internal Security and National Administration has eight stalled development projects amounting to Ksh1.15 billion and has so far spent Ksh833.65 million on them.
In parliament, the Parliamentary Joint Services has stalled projects worth Ksh4.3 billion, which as of June 30, 2024, had consumed Ksh934.5 million.
The project relates to the completion of the Centre for Parliamentary Studies and Training (CPST).
The Ministry of Defence has projects worth Ksh21.9 billion relating to infrastructure modernisation and development projects, and as at June 30, 2024, has paid Ksh3.2 billion for them.
In the education sector, a special audit has revealed how the government in the last four financial years from 2020 to 2024, sent capitation to nonexistent schools and ghost learners, amounting to billions of shillings.
Thirty-three nonexistent schools out of 83 schools that her office sampled received Sh 28.59 million as capitation.
The audit done on capitation and infrastructure grants in schools shows ghost students in 723 schools out of 1039 sampled schools received overfunding, amounting to Ksh3.7 billion, following variances between the actual number of students enrolled and registered under the National Education Management Information System (NEMIS).
Out of the 3.7 billion, Ksh3.5 billion was over-funded in secondary schools, Ksh30.8 million was for Junior Secondary Schools (JSS), while Ksh79.4 million was for primary school.
Reads the report: “The special audit concluded that the current allocation per learner, based on the funding model, does not factor in the varying needs and circumstances of the learners and schools. The capitation model, therefore, is not equitable.”
In the health sector, Gathungu, in her report for the state department for medical services, revealed how the government has no control over the Ksh104.8 billion Social Health Authority (SHA) system.
Gathungu revealed that the government flouted several laws in procuring the multi-billion system to run the Social Health Authority (SHA), where value for money could not be confirmed.
Reads her report: “Ownership of the system, system components and all intellectual property rights shall remain in the ownership of the consortium except for the infrastructure, which is to be transferred to the procurement.”
In the sports sector, the report has revealed how the construction of various sports stadiums worth Ksh6.17 billion has stalled.
The stadiums in question include Kamariny Stadium, Kipchoge Keino Stadium, Karatu Stadium, Wote Stadium, Ruringu Stadium and Kirubia Stadium.
Reads the report: “The statement of financial position and Note 27 to the financial statements reflect a work in progress balance of Ksh6,171,122,694. Review of projects implemented by Management revealed the following unsatisfactory matters.”
In the agriculture sector, the report for the state department for water and sanitation shows how the department spent Ksh96.95 to sink boreholes, some of which had stalled, while others had no water.
Of these, Ksh49.7 million was spent on drilling of boreholes whose completion has been delayed, while Ksh47.2 million was spent on boreholes which were drilled but are non-productive as they did not produce any water.”
In the immigration department, the report has revealed how Ksh44.8 billion that was paid through the e-Citizen Government Digital Payments (GDP) platform cannot be accounted for.
The report also raised questions that cash books and bank reconciliation statements for a bank balance of Ksh7.1 billion held in 12 Kenya shillings-denominated accounts and nine US$-denominated accounts were not provided for audit.
Reads the report: “Despite the strategic importance of e-Citizen, the audit of e-Citizen revenue accountability statements for the year ended June 30, 2024, revealed the following anomalies.”
In the housing sector, the report says that despite the state department for housing entering into contracts with various contractors for the construction of Affordable Houses across the country at a total contract sum of Ksh49.46 billion, land ownership documents for sites where the projects are being implemented were not provided for audit.