A Senate committee has launched a scathing attack on the Kericho County Government over serious financial mismanagement, calling out Governor Erick Mutai for illegal patient waivers, ghost workers, and stalled development projects.

The revelations from the audit report scrutinised by Senators on Wednesday, July 2, 2025, sparked outrage and renewed calls from the lawmakers for the intervention of anti-corruption authorities.

At the heart of the probe is the Kericho County Referral Hospital, where more than Ksh13 million in patient feewaivers were granted without any legal framework or budgetary approval. Senator Eddy Oketch, Vice-Chair of the Senate County Public Investments and Special Funds Committee, was blunt in his assessment.

“You cannot grant waivers of over 13 million shillings based on discretion without a policy or budgetary approval. This appears to be a flagrant violation of the Act, and it opens the door for abuse and loss of public funds,” Oketch told Governor Mutai.

Oketch cited breaches of Section 159 of the Public Finance Management Act, demanding accountability from county leadership over the discretionary waivers, which lacked any formal backing.

According to the Committee, the hospital’s financial statements painted an even grimmer picture, revealing discrepancies including an unexplained Ksh33 million variance in net assets and a Ksh59 million gap in cash flows.

Senators have criticised the professional standards of those in charge of the hospital’s finances.

“It is inconceivable that a professional accountant would append their signature to a document with such glaring discrepancies,” they warned, hinting at possible disciplinary action.

 One employee, 252 positions approved

Equally alarming was the status of the Kericho Municipality, which received a charter to operate independently but has only one staff member in place, despite 252 approved positions.

Committee Chair Senator Godfrey Osotsi was visibly frustrated, calling the situation a mockery of devolution.

“What we are seeing in Kericho is a municipality that exists only on paper. You must allow the board and its management to operate independently as envisioned in the Act,” Osotsi insisted.

He demanded that the devolved unit boss stop undermining the autonomy of the municipal board and ensure full staffing and operational independence in line with the Urban Areas and Cities Act.

The committee also flagged the Kericho Modern Market project, which has become a symbol of stalled progress and suspect procurement practices. Although 70 per cent of contract payments—about Ksh164.4 million—havealready been disbursed, the market remains incomplete, and contractor performance bonds have already expired.

The Senators questioned the county’s commitment to project delivery and fiscal discipline, noting the potential loss of public funds due to poor oversight.

Senators demand accountability

With growing pressure from both Parliament and the public, the Senate committee indicated that it may recommend formal investigations and disciplinary measures. The Senators urged Mutai to restore accountability, transparency, and respect for public finance laws.

Meanwhile, the Legislators are calling for Ethics and Anti-Corruption Commission (EACC)investigations, and audits continue to mount. As the committee resumes hearings in other counties, Kericho now serves as a cautionary tale of what happens when devolution is mismanaged and oversight fails.