Officials in Nairobi County mysteriously paid Sh2 billion to ghost companies during the campaigns period.

The funds were released in four tranches.

Documents exclusively obtained by The Nairobian revealed the Financial Reporting Centre raised the red flag on the payments 30 days to the polls, warning ex-Nairobi Governor Ann Kananu that all was not well.

The FRC said Nairobi county was paying billions of shillings to ghost suppliers following massive transactions to private accounts.

A report by the FRC also established the payments were not supported by authentic documents. The agency added that the beneficiary companies were questionable and the officials who claimed to have travelled abroad in the documents provided never left the country.

"The large cash declaration forms completed during cash withdrawals indicated the beneficiaries were street boys employed to collect garbage," the FRC noted in its report.

A reshuffle by Kananu on July 5 did not yield much after the cartels overlooked her decision and continued to hold onto their positions.

"Since the reshuffle, numerous cases of suspicious suppliers and accounts have been exposed, confirming my worst fears of systemic malpractices within sections of the county administration," Kananu said.

"The fight against corruption requires selfless commitment and I cannot allow the haze of the upcoming elections to be a cover for those who wish to reap where they have not sown."

Kananu's orders were not effected after the county Finance executive, Allan Esabwa, asked the Director Banking Division at the Central Bank of Kenya (CBK) the following day, July 6, to withdraw the mandate forms, through which CBK issues instructions on the number and identity of the person(s) authorised to operate an account.

Multiple sources privy to the Sh2 billion scandal said most of the documents were forged after the funds had already been paid, locking out genuine suppliers.

"There is a possibility that the process was done to avoid prosecution, and recovery of the funds, which are more than what the FRC flagged," a source said. The most notable payments are Sh19 million paid 11 times to the same companies for supplying stationery, sports items and branded clothing.

"These companies are owned by the same people," a source said.

About Sh296 million was also paid to 13 companies on April 25. Between January 26 and March 23 this year, Sh754 million was paid to 14 companies in 16 transactions.