Audit report: Jubilee Party cannot account for Sh600m expenditure

Jubilee Party logo at the their offices in Pangani along Thika Superhighway, Nairobi. [Elvis Ogina, Standard]

Former President Uhuru Kenyatta’s Jubilee Party was unable to account for the expenditure of about Sh600 million.

It has also emerged that the party received Sh248.7 million in donations from the public for the 2021/2022 financial year. 

This was revealed by the Office of the Auditor General which, after auditing the funds that have been at the centre of supremacy wrangles, has also faulted the former ruling party for failure to provide crucial documents supporting the expenditures.

According to the report, the party received Sh149,087,202 from nomination fees, Sh96,732,000 from members’ subscriptions and Sh2,964,886 as miscellaneous income.       

“The management did not provide the list of its party members in respect to the amount contributed during the year. In the circumstances the accuracy and completeness on revenue from the public could not be confirmed,” says the report.

The Nancy Gathungu-led office also flagged a Sh212,284,564 expenditure on campaigns and elections, noting that the party was unable to account for Sh152,248,000 paid to suppliers of campaign materials. It noted that the payments were not supported with bid documents and duly executed contracts.

There were also the payments on grassroots and field programme expenses totaling Sh216,411,704, which included Sh176,411,704 paid to a supplier for campaign materials which were not supported by bid documents.

“In addition, payment vouchers amounting to Sh101,268,376 were not provided for audit…in the circumstances, the accuracy and completeness of the expenditure of Sh212,284,564 on campaigns and elections by Jubilee party for the financial year ended June, 2022, could not be confirmed.”

The Auditor General further raised concern over the party’s unsupported office rental expenses which amounted to Sh96,069,510.

In February, Jubilee changed its headquarters from Pangani on Thika Road to Kileleshwa, off Mandera Road. A year prior, however, the building housing the party’s headquarters at Pangani was put up for auction over Sh435 million rent arrears.

The audit report goes on to point out an unsupported expense of Sh86,129,500 on advertisement.

The embattled party was also faulted for unaccounted for payment and meetings expenses amounting to Sh1,886,003.

At the same time, the auditor revealed that the party’s financial statements reflected a cash equivalents balance of Sh281,812,535 but the same was not void of anomalies such as the unconfirmed bank balances.

According to the report, Sh10,082,059 is held in three bank accounts inherited from the defunct TNA and URP. Further review of the bank balances revealed that another 8 bank accounts with balances totaling Sh5,470,868 have been dormant and no explanation was provided as to why the accounts were not operational.

The report is now before the National Assembly’s Public Accounts Committee, which is expected to summon the party officials.

The report comes amid infighting, with two factions claiming its leadership. At the heart of the dispute is the billions in the bank and an intent by one faction to withdraw from the Azimio la Umoja-One Kenya Coalition in support of the ruling Kenya Kwanza Alliance. The factions are embroiled in a court battle.