Senate flags Ksh102M spending gaps, loan irregularities in Kilifi funds

By , August 8, 2025

The Senate County Public Investments and Special Funds Committee has raised concerns over recurring financial reporting errors and unsupported expenditures in Kilifi County’s special funds for the 2023/2024 Financial Year.

According to the social media post on Parliament’s official social media platforms on Thursday, August 8 2025, the committee, chaired by Vihiga Senator Godfrey Osotsi, questioned Governor Gideon Mung’aro and his team over the Auditor-General’s reports on the County Ward Scholarship Fund, Emergency Fund, Climate Change Fund, and the Microfinance (Wezesha) Fund.

Senator Osotsi expressed alarm at the repetition of what he described as basic accounting mistakes.

“It’s disturbing that professionals in good standing with ICPAK are behind such lapses. The committee is considering reporting them to their disciplinary board,” he said.

The committee’s key concerns included unsupported expenditures of Ksh102.9 million on food purchases under the Emergency Fund, unverified bursary allocations, and unauthorised overdrafts in the Scholarship Fund. The Wezesha Fund also drew an adverse opinion from the Auditor-General due to unsupported balances and non-performing loans exceeding Ksh49 million.

Ongoing Committee meeting at Bunge Towers: PHOTO/facebook.com/ParliamentKE

Governor Mung’aro, in his response, distanced himself from direct responsibility for the lapses, pointing instead to certain officers within his administration.

“I have consistently urged my team to support the audit process. I will act decisively against those who fail to comply,” he affirmed.

The governor also emphasised that the audit findings did not indicate any outright theft.

“No funds had been misappropriated,” he emphasised, maintaining that the issues arose mainly from failures to provide required documents to auditors in time.

The committee’s scrutiny forms part of the Senate’s ongoing oversight of county governments to ensure transparency and accountability in the management of public resources. The flagged issues, especially the Ksh102.9 million in unsupported food purchases and the Ksh49 million in non-performing loans, have put Kilifi County’s financial management in the spotlight.

As the committee weighs further action, including the possibility of reporting implicated accounting officers to the Institute of Certified Public Accountants of Kenya’s disciplinary board, the case serves as a reminder of the Senate’s role in safeguarding public funds and upholding audit standards.

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