The Government has ordered the deregistration of Nairobi Governor Evans Kidero's foundation.
In a letter dated February 21, the Office of the President wrote to Central Bank Governor Patrick Njoroge, ordering the cancellation of the foundation.
It raised concerns about the foundation's membership, which includes top county officials, citing conflict of interest.
The order came a day after the Non-Government Organisations Co-ordination Board cancelled the foundation's registration on grounds that it had failed to file tax returns, and opened and operated unauthorised bank accounts.
"The membership of the organisation raises critical questions of possible conflict of interest between the county government and the Evans Kidero Foundation," read the letter.
It also stated that the source of deposits was questionable because some of the transactions were made by senior county officials.
"On June 24, 2014, George Wainaina, who is the secretary of the Evans Kidero Foundation and also the chief of staff at Nairobi City County, deposited Sh1,100,000, which raises serious questions on the source of funds deposited," added the letter.
Another concern was the acquisition of a property known as the Evans Kidero Centre in Kileleshwa.
The foundation's officials include Chairman Philip Opondo, who is also the chairman of the County Public Service Board, Mr Wainaina, Dr Kidero, who is a board member, Ronald Kidero, the treasurer, and board member Rosemary Okello.
NGO Co-ordination Board Executive Director Fazul Mahamed, in another letter, indicated that Ndeiya Farm Ltd had also deposited millions of shillings into the foundation's accounts with no clear intentions on the usage of the funds indicated.
Dr Kidero said he was opposed to the deregistration as the foundation was formed before he took office.