Nancy Gathungu: The Iron Lady of Kenya's public funds oversight

Auditor General Nancy Gathungu before the Senate's CPAC committee. March 4th,2025 [Elvis Ogina, Standard] In the world of fiscal oversight, where truth is elusive, the Auditor General Nancy Gathungu emerges as the beacon of integrity, unmasking hidden ills with unmatched vigor. Gathungu is a force to be reckoned with, a symbol of unrelenting commitment to public accountability. Whether adored or despised, her voice echoes across corridors of power, stirring both admiration and unease in equal measure. A woman who has become synonymous with truth and transparency, Gathungu's work is a testament to her remarkable power, her relentless pursuit of fiscal justice, and her firm assertion of authority in matters of national accountability. From the moment she assumed office on July 17, 2020, Gathungu has been a resolute presence in the fight for accountability. As the second Auditor General since the promulgation of Kenya's 2010 Constitution, Gathungu has led the charge in exposing significant financial irregularities that threaten to undermine public trust in government institutions. With over decades of experience in auditing and public finance oversight, she has cast a sharp light on multi-billion-shilling deals and transactions that would have otherwise remained under the rugs. Her office's meticulous investigations into the misuse of public funds by national and county governments, parastatals, and other government agencies have sent shockwaves through the country, sending ripples of accountability across the public sector. Her name has now become synonymous with fearless scrutiny, as evidenced by the explosive revelations that have emerged from her recent audits. In one of her most explosive reports, Gathungu unearthed irregularities in the procurement of the Sh104 billion technology system running Kenya's Social Health Authority (SHA). She told the Senate County Public Accounts Committee that the ownership of the SHA system is under a consortium and not the government, raising questions over transparency of the tender process. She also underlined un-budgeted and non-competitive procurement, undefined scope of works, lack of agreements on payments, and unfavourable contract clauses as some of the shortcomings facing the SHIF. "I have pronounced myself on the audit report on SHIF where I have concluded that there was no effectiveness and lawlessness on the use of public resources," Gathungu told the Committee. "My report is very clear on the issues that were not lawful and effective," she asserted. The bombshell revelations in audit reports often ignite heated debates forcing key stakeholders to confront the uncomfortable reality of their own shortcomings The expose on the ownership and management of the SHIF system sparked a storm among the political class and now a section of MPs want the office of the Auditor General investigated over allegations of corruption. Such revelations have often made her a target of political backlash. Already, there are threats by MPs to 'tame' her office for what they term as publicizing of reports without parliament approval. "Because they are independent offices, they think the world will come crumbling down. Their independence cannot go without being checked," said the Majority Leader at the National Assembly Kimani Ichung'wah. The MPs also questioned why the OAG publicized the reports before being confirmed in parliament on the argument that "the culture will lead to anarchy." "That culture will destroy people's names without recourse. There could be delays in submission of documents, miscommunication. Why then can't the Auditor publish the reports without Parliament?" posed minority leader Junet Mohamed. However, it is her ability to navigate the turbulent waters of public accountability that truly sets Gathungu apart. In an environment where political pressures and vested interests often cloud the pursuit of justice, she stands firm. Gathungu does not shy away from wielding her position as the custodian of public finance accountability with boldness and authority. In an environment where transparency is often compromised and public officials are adept at sweeping their failures under the rug, Gathungu's role has become indispensable. She stands in the face of fiscal negligence, pushing for the reforms that Kenya so desperately needs. But that was not the first time Gathungu was rubbing pro-government politicians the wrong way in executing her constitutional mandate to expose flaws in public finance management. Recently, she stunned the nation once again with her examination of the management of the Hustler Fund, a flagship initiative of President William Ruto's administration. Her report uncovered a staggering Sh8 billion in non-performing loans could be lost under Hustler Fund. With unparalleled precision, she revealed that 1,186 borrowers had accessed the fund despite being underage, some as young as 10 days old. She told the committee that children between 10 days and 17 years accessed the credit facility and borrowed more than Sh700, 000. She shed light on irregularities in the Hustler Fund project highlighting severe financial leakage at President William Ruto's flagship project. A once-promising project launched with pomp and fanfare to create access to credit for a majority of Kenya and SMES has now been riddled with financial improprieties. Gathungu's report that 64 per cent of the money borrowed has not been repaid for more than a year raises questions over the effectiveness of the Fund. Gathungu, a soft-spoken but firm Kenya's top auditor, depicts a powerhouse in public accountability casting doubts over sustainability of president Ruto's projects. Her commitment to her role not only emphasizes the critical need for fiscal responsibility but also positions her as a crucial figure in Kenya's ongoing battle against corruption. Gathungu took office as Kenya's Auditor General on July 17, 2020, for a non-renewable term of eight years, succeeding Edward Ouko who served as auditor general between 2011-2019. Gathungu, Kenya's second Auditor General since the promulgation of the Constitution 2010 has held several position related to auditing. About four years ago in July 2020, Gathungu was sworn in as the Auditor General of the Supreme Audit Institution (SAI) of Kenya for a non-renewable eight-year term by virtue of her position, succeeding Edward Ouko. Before her appointment as Auditor General, Gathungu held the position of Director of Quality Assurance at SAI Kenya and served as the Chief Internal Auditor at Kenyatta National Hospital. As a Certified Public Accountant, she has also managed several significant assignments for the African Organization of English-Speaking Supreme Audit Institutions (AFROSAI-E) and the International Organization of Supreme Audit Institutions Development Initiative (IDI). In 2021, She was appointed Vice Chair of AFROSAI-E for a three-year term. With a Master's Degree in Business Administration (Strategic Management) and a Bachelor's Degree in Commerce (Accounting) from the University of Nairobi, she brings a strong academic and professional background to her role. Gathungu is a member of the Institute of Certified Public Accountants of Kenya (ICPAK), a Certified Information Systems Auditor (CISA), and the Association of Women Accountants of Kenya (AWAK). Her leadership in public finance goes beyond her professional duties. Gathungu is also a mentor and advocate for women in the field of accounting. She is also actively involved in mentorship through her membership in Girls for Girls (G4G) Kenya Mentors. Her work as a facilitator on critical subjects such as governance, ethics, public finance, and risk management has made her a sought-after resource person, recognized not just for her technical expertise but also for her visionary approach to leadership. Other achievements recorded under rule at the OAG include 2,531 audit reports submitted to Parliament and County Assemblies, 355 Parliamentary Committee sessions supported. She has also led in the oversight of Sh 2.7 trillion expenditure of government bodies. It was also during her reign that a significant audit backlog was cleared and a draft framework for tracking the implementation of audit recommendations OAG has also been honoured by the International Organization of Supreme Audit Institutions (INTOSAI) Capacity Building Committee for pioneering the Performance Measurement Assessment Framework. Gathungu is the unwavering force in Kenya's struggle for transparency and fiscal responsibility. With each report, each audit and every revelation, she reaffirms her position as the shining example of what true leadership looks like, resolute, principled, and unstoppable.

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