A report by Auditor General Nancy Gathungu has laid bare a staggering Sh1.4 billion in financial irregularities at the Women Enterprise Fund, putting Principal Secretary Anne Njoki Wang’ombe on the spot.
The report, covering the financial year ending June 30, 2024, reveals a trail of unauthorized transactions, doctored records, and unaccounted funds, with internal sources now alleging that Wang’ombe actively obstructed a forensic probe that could have exposed an even deeper rot.
The Women Enterprise Fund, tasked with empowering women through affordable credit, is teetering on the brink of insolvency, with losses ballooning to Sh330 million—a 49% plunge from the previous year’s Sh220 million.
Gathungu’s audit paints a grim picture: Sh212 million funneled through unauthorized mobile paybills, Sh34 million in undocumented gratuity payments, and Sh1.2 billion in unexplained ledger discrepancies.
The fund’s financial statements are riddled with gaps, including Sh68 million reported for computer maintenance, of which only Sh9 million can be traced, leaving a Sh59 million void.
But the scandal’s most explosive revelations point to a deliberate cover-up.
Wang’ombe’s hand
Insiders claim Wang’ombe, who oversees the fund through the State Department for Gender and Affirmative Action, halted a board-sanctioned forensic audit into the fund’s digital systems.
The probe was reportedly quashed after it emerged that critical logs—containing metadata on mobile money disbursements and loan repayments—had been deleted under the ICT manager’s watch.
These logs could have unraveled how Sh212 million bypassed Executive Order No. 2 of 2023, which mandated all government payments to flow through a single paybill.
Whistleblowers allege a coordinated effort to sanitize the fund’s books. A suspicious Sh400,000, initially logged as per diem for external auditors, was wired to the personal accounts of Deputy Finance Manager Felix Aketh and officer Winfrida Ogula, with no supporting travel or requisition records.
Credit Manager Raphael Kimolo is implicated in authorizing the payout, masked as board-approved expenditure. Such maneuvers, sources say, were designed to dodge scrutiny ahead of Gathungu’s review.
The audit further exposes systemic failures: Sh71.3 million in defaulted loans to women’s groups remains unrecovered, with the fund’s legal office showing no evidence of pursuit.
Payroll discrepancies reveal Sh374 million in reported staff costs against Sh369 million in actual disbursements, raising questions about ghost workers or unapproved allowances.
Meanwhile, the fund’s 43 board meetings—deemed excessive by public sector standards—are suspected of serving as a rubber stamp for questionable decisions rather than ensuring accountability.
The fund’s defiance of a presidential directive to consolidate payments under one paybill is another red flag.
Three separate mobile accounts continued operating, with no explanation for their balances or why recommendations to invest them in call deposits went unreported to the Treasury.
Gathungu’s report warns that without urgent intervention, the fund risks collapse, threatening the livelihoods of countless women it was meant to uplift.
Wang’ombe’s alleged interference has sparked outrage. “This isn’t just mismanagement—it’s a betrayal of trust,” said a source close to the fund, speaking anonymously for fear of reprisal.
“The PS’s actions suggest a deliberate effort to shield those responsible.”
Calls are mounting for EACC investigations into the State Department’s role, with the commission urged to probe what could be one of the most audacious cover-ups.
