Senators raise red flag over Sh87b that cannot be accounted for

Homa Bay Senator and Senate CPAC Committee Chairman Moses Kajwang' during the committee meeting at Bunge Tower, Nairobi on March 10, 2025. [Boniface Okendo, Standard] Senators have raised concerns over Sh87 billion that is unaccounted for in all 47 counties in the 2023/24 financial year, terming it worrying as the devolved units seek more funding from the Exchequer. This was revealed when Senate County Public Accounts Committee chairperson Moses Kajwang' tabled Auditor-General reports on county financial statements before the Senate last Thursday. Kajwang' told senators the Parliamentary Budget Office had identified Sh532 billion in county fiduciary risk exposure, with unidentified assets, legal fees and pending bills topping the list - against annual Exchequer transfers of Sh400 billion. "Our 47 counties must explain where Sh87 billion disappeared last financial year. ''We'll visit counties with EACC, DCI and DPP to trace Exchequer funds," said Kajwang'. He noted Isiolo, Kiambu, Baringo, Marsabit, Nyamira and Kajiado counties neither appeared before the committee nor submitted written responses, and would be summoned. The Homa Bay senator revealed no county assembly had properly reviewed Auditor-General reports as required, effectively abdicating their oversight role to the Senate. Kajwang' cited Homa Bay and Migori county assemblies receiving adverse audit opinions due to weak governance, requiring written responses. "We observe annual county wastage and embezzlement running into billions, yet the Senate advocates for increased funding. Governors must ensure prudent expenditure," he said. Pending bills had risen to Sh179 billion from Sh163 billion the previous year, with Nairobi (Sh118b), Kiambu (Sh6.3b), Mombasa (Sh4.4b), Machakos (Sh4.1b) and Bungoma (Sh3.5b) leading. Twenty-four counties have more than Sh1 billion pending bills each. Kirinyaga's Sh1 billion backlog includes Sh500 million over five years old, indicating the governor's neglect of past debts. Kajwang' warned counties against prioritising current contractors while ignoring valid past claims, which courts could enforce at a greater cost. "County taskforces reviewing pending bills are illegal going by Kitale High Court ruling. Internal audit committees should handle this - we don't need taskforces reviewing other taskforces," he stated. The Public Finance Management Act caps wage bills at 35 per cent. Sixteen counties exceed 50 per cent, while most fall short of the 30 per cent development expenditure threshold. Counties blame inherited municipal employees and local employment pressures, with Kisii (60 per cent), Nairobi (56 per cent), Nyeri (55 per cent), Laikipia (55 per cent), Taita Taveta (54 per cent) and Homa Bay (52 per cent) worst affected. Kajwang' sought Senate approval for joint inquiries with Ethics and Anti-Corruption Commission, Directorate of Criminal Investigations, Auditor-General, Controller of Budget and National Treasury to assess compliance. "Legal fees require multi-sectoral solutions. Accountants producing inadmissible statements must face disciplinary action - all officials must exercise due diligence," he concluded He noted that the Senate had sought a judicial review since it was not possible for the House to handle the audit reports within three months while calling on county assemblies not to abscond in their responsibility of carrying out oversight of the county executives The committee vice chairperson, Johnes Mwaruma, who seconded the report, said they have added counties Sh50 billion in additional grants with county assemblies required to do follow-up to ensure that the law is followed in the implementation of projects. Mwaruma said that the Auditor-General report has been brought before the Senate and the 47 county assemblies with the Senate allowed to instruct governors to use funds well so that public funds are not lost "We have gone through the reports which shows that funds may not have been well used with no asset registers, with no clear records on vehicles while some land parcels don't have title deeds," said Mwaruma.

Senators raise red flag over Sh87b that cannot be accounted for

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Senators raise red flag over Sh87b that cannot be accounted for

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