Under the leadership of Governor Abdi Guyo, Isiolo County has been marred by corruption and poor governance.
The recent financial audit of the county’s operations reveals a disturbing pattern of economic mismanagement, illegal practices, and a lack of accountability.
This article sheds light on the serious discrepancies and irregularities in the audit report.
Financial Discrepancies and Mismanagement
The audit report highlights numerous inaccuracies in Isiolo County’s financial statements for the fiscal year 2022-2023.
There are significant unexplained variances between the budgeted and actual figures.
For instance, the county’s budget statement shows budgeted revenue of Kshs 5,223,402,709, matching the actual receipts.
However, a closer examination reveals that the county actually realized only 97.75% of its revenue projections, amounting to Kshs. 6,316,282,100, against the approved target of Kshs. 6,461,031,197.
This results in an unexplained shortfall of Kshs. 1,092,879,391. There are also inconsistencies between the reported total receipts and payments.
The financial statements reflect total receipts of Kshs. 5,223,402,709 and total payments of Kshs. 4,849,600,633, whereas another statement lists these figures as Kshs. 5,848,704,848 and Kshs. 5,446,853,315, respectively.
This discrepancy amounts to an unexplained variance of Kshs.625,302,139 in receipts and Kshs.597,252,682 in payments.
These financial misstatements raise serious questions about the integrity of the county’s financial reporting and the transparency of its fiscal management.
Unsupported and Irregular Expenditures
The county’s statement of receipts and payments includes unsupported and irregular expenditures.
A glaring example is the transfer of Kshs. 1,501,486,520 to other government entities, which is not reconciled with the cash flow statement showing only Kshs. 904,233,838, leading to an unexplained difference of Kshs. 597,252,682.
Furthermore, the audit report reveals that compensation for employees includes Kshs.90,275,000 for temporary employees, but the expenditure ledgers only reflect Kshs.83,520,000, creating an unreconciled variance of Kshs.6,755,000.
Additionally, the statement of cash flows indicates a net increase in cash and cash equivalents of Kshs.999,104,215, while the actual net difference is only Kshs.764,615,509, resulting in an unexplained variance of Kshs.234,488,706.
These irregularities indicate potential misuse of funds and lack of proper financial controls.
Violation of Public Finance Management Act
Governor Abdi Guyo’s administration has also violated the Public Finance Management Act.
The county made payments amounting to Kshs. 168,128,800 from the emergency fund, exceeding the legal limit of 2% of the county’s previous year’s revenue.
This action breaches Section 113 of the Public Finance Management Act, 2012.
Moreover, the county failed to provide the required emergency needs assessment and assistance requests for audit review, further indicating non-compliance with legal provisions.
Revenue Collection and Management Issues
The audit report identifies serious flaws in the county’s revenue management.
The county collected Kshs. 152,700,178 as own-source revenue without an approved County Finance Bill for 2022, violating Section 132 of the Public Finance Management Act, 2012.
Additionally, there was an unexplained delay in transferring Kshs. 14,064,615 from revenue collection accounts to the County Revenue Fund, contravening Regulation 81 of the Public Finance Management (County Governments) Regulations, 2015.
Unregulated Procurement Practices
Irregular procurement practices are rampant in Isiolo County. The Department of Health Services engaged suppliers for amounts exceeding the legal thresholds without proper procurement procedures.
Payments of Kshs.3,900,000 for cleansing and sanitary materials and Kshs.3,500,000 for medical records and stationery were made through requests for quotations, which should not exceed Kshs.3,000,000 for goods and services according to the Public Procurement and Asset Disposal Regulations, 2020.
The lack of supporting documents like receipt vouchers and inspection reports raises concerns about the authenticity and necessity of these procurements.
Mismanagement of Assets and Non-Compliance
The county’s asset management is in disarray. There is no updated asset register, and the assets of the defunct County Council of Isiolo have not been incorporated into the current records.
This lack of documentation and proper management violates Regulation 132 of the Public Finance Management (County Governments) Regulations, 2015.
Moreover, many assets remain uninsured, contrary to Section 160 of the Public Procurement and Asset Disposal Act, 2015, putting them at risk of loss or damage.
Failure to Adhere to Fiscal Responsibilities
The county’s wage bill exceeds the legal limit, representing 38.4% of total receipts, while the law stipulates a maximum of 35%.
Additionally, the county continues to employ individuals beyond the mandatory retirement age of 60, violating Public Service Commission Regulations.
This overemployment exacerbates the fiscal strain on the county’s resources.
Lack of Transparency and Accountability
Governor Abdi Guyo’s administration has failed to prepare and submit crucial financial statements, including those for revenue collected and the emergency fund.
This non-compliance with Section 165 of the Public Finance Management Act, 2012, underscores a lack of transparency and accountability in the county’s financial management.
Isiolo County has been called out for managing six commercial bank accounts
The Office of the Controller of Budget (COB) flagged Isiolo County for using six commercial bank accounts and manually processing Sh27.11 million in personnel payments, contravening legal requirements to use the Integrated Personnel and Payroll Database (IPPD) system.
COB Margaret Nyakang’o emphasized the risks of manual payments and urged the county to expedite IPPD integration and unified personnel numbers.
Isiolo’s practices violate Regulation 82(1)(b) of the Public Finance Management (County Governments) Regulations 2015, which mandates maintaining county bank accounts at the Central Bank of Kenya.
The County Public Service Board was also urged to regulate staff engagements in line with Section 74 of the County Governments Act of 2012.
Additionally, Nyakang’o criticized the late submission of financial reports by the county Treasury and highlighted a significant backlog of pending bills totaling Sh432.25 million as of December 2023.
For the first half of FY 2023–24, Isiolo’s budget was Sh5.75 billion, with Sh4.01 billion for recurrent expenditure and Sh1.74 billion for development.
The county received Sh2.03 billion as an equitable share and raised Sh168.23 million from its own source of revenue.
Notable expenditures included Sh105.42 million on domestic travel and Sh28.35 million on foreign travel, prompting calls for prudent financial management.
The ongoing onslaught against judges has taken a new twist after a Nairobi MCA claimed that some judges have been frustrating the operations of the county.
Makongeni MCA Peter Imwatok alleged that Court of Appeal Judge Mohammed Warsame has been working closely with some Nairobi County MCAs to give a ruling in their favour.
“It’s very sad that some judges only give rulings that favour members of their religion or tribe. I will soon write to the Judicial Service Commission JSC about this sad situation,” Imwatok said.
On the allegations raised by impeached Governor Mike Sonko against Justice Said Chitembwe, Imwatok urged JSC to move with speed and probe the allegations.
“Some of the allegations raised are destroying our name as a county assembly. We are asking JSC to probe them and give us a report as soon as possible”, Imwatok said.
When reached out for a comment on the claim, judge Warsame said; “I will not comment on issues that are currently in court. It’s prejudice.”
He has further demanded prompt withdrawal of Justice Warsame from the Nairobi County Assembly case filed by former clerk Jacob Ngwele.
“I want to put it straight that we are not part of what the judiciary is doing. I want to say that what we did was good for Nairobians, we did not do anything out of malice, we did not do anything out of injustice. I agree that the courts subsequently have agreed with us and if indeed the courts have agreed with us then I don’t expect what I see on social media expounded by former governor Mike Sonko,”
Makongeni MCA Peter Imwatok.
His plea comes at a time when the JSC has already allowed petitions seeking to remove Justice Saib Chitembwe. The commission has directed the petition be directed to the judge for a response which should be done within 14 days.
In a statement on Monday, Chief Justice Martha Koome said the JSC had deliberated on the petitions which accuse the judge of gross misconduct and impropriety.
“The petitions and the honourable judge’s response will be considered by a panel which has been set up by the commission. The panel will present its findings to the commission,” the statement read.
Former Nairobi Governor Mike Sonko has accused Chitembwe of graft.
Chitembwe has denied involvement in corruption.
Sonko made the allegations through various video recordings, which have come to be referred to as ‘Sonko leaks’
Ngwele case and Justice Warsame’s implications
This is one case where Justice Mohammed Warsame has been accused of favoring his Muslim brothers and a reason the MCAs are demanding that he recuses himself from is the case challenging Jacob Ngweles’ dismissal as assembly clerk, a lucrative position in the National Assembly.
Through their lawyer Michael Osundwa, ousted clerk Edward Gichana feels that he would not be accorded fair hearing.
“A judge must be polite and must give each party equal chance and fair trial it is true that my client is not happy with the manner in which this case is being handled I was not given the opportunity to elaborate my case,” Osundwa noted.
Justice Maureen Onyango ruled that Ngwele’s appointment to the clerk’s office was shrouded in irregularities.
“The petitioner sought an injunction against the respondents for illegally or unfairly interfering with his employment by way of suspension, termination or removal whether acting directly or through third party… Having found that the petitioner’s appointment was shrouded in irregularities, hence illegal, this court declines to grant those orders,” Onyango ruled ruled.
According to a source privy to the happenings talking to Kenya Insights, the bad blood between the judge and the lawyer ended in altercation where the Osundwa was referred to a ‘terrorist’ a racist reference only close to ‘nywele ngumu’ that Somali and Ethiopians use to refer to Kenyans in the borders.
Now the genesis of the troubles is the former clerk Jacob Ngwele ichallenging his dismissal by County Assembly Service Board and earlier ruling by labour and relation court affirming the same.
In our previous articles, we exposed how Ngwele was ousted of office for holding it illegally, we went further to tell you how the City Hall cartels put out all their machinery to save Ngwele who was aligning to their fraudulent dealings. Abdi Guyo the man at the center of saving Ngwele and the man alleged to have brokered a deal with Justice Warsame is not new to controversy neither does he shy away from it. A man who has never forgiven former Speaker Beatrice Elachi for giving her trouble desoite being out of office. In one of their many altercations, he once told Elachi ‘wewe utanijua’ a statement that was read by those around as based on Islamic beliefs that look down upon women and that they can never triumph over men.
Guyo was named in the ‘Sonko Leaks’ where the governor accused him of working together with his lawyer Cecil Miller, George Kariuki in bribing Justice Chitembwe to rule for his impeachment.
Warsame’s Office
Now the MCAs are accusing Guyo of having played the same cards with Justice Warsame. Incidentally, Kenya Insights has learnt that the research officer who was working on Ngwele’s case that Warsame gave a favorable ruling was once working in City Hall’s legal department while Ngwele was still the clerk raising serious issues of clash of interests. It’s unclear whether Warsame was made aware of the scenario.
It remains a puzzle how in the ruling Warsame incorporated Edward Gichana who wasn’t part of the suit neither applied to be enjoined. The ruling rose suspicions and a base of MCAs allegations that Warsame was manipulated and didn’t give fair justice.
More interesting in the Ngwele’s web is Acting Clerk Adah Anyango whom our sources say had a relationship with Ngwele. We’re also told of suspicious payments authorized to Ngwele for his lawyers which is intriguing given the fact that his lawyers were representing him in the capacity of an individual not as a clerk, this allegations should be followed by investigations and audits to ascertain the claims.
We’re informed Ngwele is scheming for a return to the City Hall.
Keeping with City Hall dramas and protection of cartels.
Former clerk Jacob Ngwele who’s a close associate of Guyo is also accused of securing a job for one of the officers in investigative agencies and who was investigating the Trip by an associate Abass to Dubai. This he allegedly did to stop the Investigations.
Justice Warsame is not new to bribery accusations, in 2019, Judicial Service Commission (JSC) received a petition seeking the removal of Justice Mohammed Warsame.
The petitioner, Wardere Mohamud Bule, accused Justice Warsame of alleged bribery and breach of judicial code of conduct.
He further claimed that Justice Warsame received bribery money from lawyer Ahmednassir Abdullahi for onward transmission to his colleagues in the Court of Appeal to influence outcome of the cases before the court.
According to the petitioner, Justice Warsame is involved in an elaborate plot with Senior Counsel Ahmednasir Abdullahi to capture the Judiciary at all levels thereby undermining constitutionalism, rule of law and national security.
The petitioner claims the two enjoy a close personal and client-advocate relationship and are also business partners.
“Such dalliance and friendship is human and acceptable if it does not cross the line of the judge’s discharge of his duties but the honourable Judge has merged his personal relationship and public duty,” said Bule in the petition.
He accused Warsame of being a “co-conspirator with Ahmednasir in court of appeal bench fixing, conduits of bribes to fellow court of appeal judges and looking the other way in cases of patent conflicts of interests”.
Bule alleged Justice Warsame received Sh72 million from Ahmednasir for transmission to his colleagues in the court of appeal to influence the outcome of several cases, particularly election petitions, before the court.
According to the petitioner, Warsame received Sh20 million for the Wajir governor election petition, Sh12 million in the Wajir West election petition, Sh25 million in the Machakos governor election petition and Sh15 million in the appeal where two Iranians were convicted of terrorism related charges in 2012.
He said that under a separate confidential cover, he would furnish the commission with details of the improper contacts between Warsame and Abdullahi, and particulars of payments, during the hearing of the case.
In 2018, Parliament was keen on blocking Warsame’s appointment to the JSC. According to the MPs, the judge needed to appear before the vetting committee and not bypass the set out procedure.
Parliament was barred by the High Court from vetting Warsame following his re-election to represent the Court of Appeal at JSC. The High Court ruling followed a suit by the Law Society of Kenya.
The demons of City Hall didn’t disappear even with the transfer of critical functions to the General Badi’s led NMS. The City’s control center which is synonymous with scandals continues to make the familiar headlines even with Nairobi Deputy Governor Ann Kananu who took from the corrupt Mike Sonko being in control.
The DG is currently fighting numerous cases that has risked her getting arrested.
She was recently summoned by the Directorate of Criminal Investigations KRA Unit investigating a case involving the failure to remit income tax, withholding tax and PAYE contrary to Section 97 of the Tax Procedure Act.
Kananu moved to court to block her pending arrest over failure by county to remit Sh2.1bn tax arrears to KRA.
In the same week, court of appeal dealt a blow to Sonko who’s challenging the legality of Kananu occupying the office. Court ruled that Sonko having stayed out of office for over 10 months, he was no longer a Governor. This paved way for the swearing in of Kananu as the governor.
However, the celebrations was short lived as Sonko moved to the Supreme Court and stopped the swearing in.
Now, analysts believe that there’s a grand scheme by powerful forces to reinstate Sonko as the governor.
A network of powerful cartels in the corridors of justice is said to be frantically pushing for the return of former Nairobi governor Mike Sonko. In the scheme are judges, lawyers and politicians. This happens amidst fierce escalation of supremacy war between the executive and some individuals within the judiciary perceived to be bitter with Uhuru Kenyatta and who have consequently opted to team up with William Ruto, who pulls strings behind the scenes.
The mafias believed to have fully infiltrated the judiciary ostensibly played a major role in latest court drama that saw Sonko secure orders from the Supreme Court barring the swearing-in of acting governor Anne Kananu. There are predictions that Sonko is likely to be sneaked back to his former seat through a ruling that is coming in November in which he wants the appellate court to overturn the High Court decision and declare that he was illegally impeached.
Understandably, the idea to block Kananu’s swearing-in which came as a shocker was a result of high level consultation among the cartels, aware that Sonko stood no chance of getting back his job in the event that the deputy governor was sworn in as governor.
Failure to stop the swearing-in meant that even if Sonko was to get a favourable ruling in November, the verdict would have nothing to do with Kananu’s job. Sonko will then be governor and Kananu deputy. Constitutionally, a governor once sworn in office can only be removed through impeachment, death or through resignation. It is also against this background that the deep state and Kananu were upbeat of conducting an early morning swearing-in ceremony but which was rudely blocked.
To demonstrate how powerful individuals within the judiciary are the ones directing actions in Sonko’s case, the former governor was not moved by a decision to dismiss his appeal but instead casually went on his Facebook and confidently told his supporters to keep calm and wait for November when a petition challenging his removal will be heard in the Court. The orders barring the swearing-in of Kananu were issued by Supreme Court’s Justice Mohammed Ibrahim who certified Sonko’s application as urgent.
It is imperative to note that Ibrahim has close links with lawyer Ahmednasir Abdullahi who is a staunch ally of the deputy president. Also said to be part of the wider game plan to bring back Sonko is the Deputy Chief Justice and vice president of the Supreme Court Lady Justice Philomena Mwilu. Mwilu is bitter following the deep state’s power games that locked her out of the position of the Chief Justice currently held by Martha Koome. Apparently, the deputy chief justice feels that she is being frustrated and targeted by the state following her unending misfortunes as far as her professional life is concerned.
City Hall.
In her compounding tribulations, the office of the DPP is on record stating that it is confident of winning the graft and abuse of office case against the troubled DCJ. The DPP’s office has threatened to release the dossier which would seemingly secure Mwilu’s conviction. Shockingly, the Judicial Service Commission led by Chief Justice Koome cited that it had evidence on how the DCJ allegedly transacted over Sh20 million at the Supreme Court parking lot, her office building and her Kilimani home .
In a more dramatic development, former Chief Justice Willy Mutunga is the last to join the fray by telling judges to go on strike over the government’s failure to obey court orders. Mutunga’s appointment was linked to Ahamednassir then JSC member. The remarks did not go down well with Uhuru and CJ Koome who could not fathom how Mutunga was inciting judges to down their tools, given he served as the country’s CJ who should be aware of the fact that implications of calling for a judicial strike are far-reaching.
And as was widely expected, the Law Society of Kenya president Nelson Havi joined the war by defending Mutunga. According to Havi, the CJ should not have responded to Mutunga because it is common sense that judges cannot go on strike. Havi in his usual manner attacked Koome stating that ‘she lacks emotional intelligence and she needed not to respond to retired CJ’s call for judges to go on strike.
Back to city hall and Kananu’s tribulations.
Senate Devolution Committee chairman Moses Kajwang on Wednesday reprimanded Kananu for ignoring requests to go and explain reasons for paying Sh795 million to law firms out of the county’s allocation of Sh2.5 billion meant for clearance of pending bills.
Kananu had been invited to respond to a statement by nominated Senator Millicent Omanga who alleged the county was spending a huge chunk of its budget on legal fees.
She claimed in the statement that City Hall paid a total of Sh795.9 million out of the county allocation of Sh2.5 billion meant for the clearance of all pending bills in the financial year 2018-19.
Omanga also wants to know whether there was documentary evidence availed by the law firms to support the payments made by City Hall.
She also wants a progress investigation report by the Ethics and Anti-Corruption Commission on investigation on the legal fees paid to lawyers for services by Nairobi county government during 2018-19.
In the past and for long, Imaginary court cases has costing Nairobians millions of shillings and this has been revealed in past audit reports.
Before Governor Evans Kidero took over in 2013, City Hall had outstanding legal claims amounting to Sh1.21 billion.
As at September 30, 2014, City Hall had sunk Sh133 million in court cases. Between June 30 and July 1, 2013, the county government spent Sh232 million on court cases.
Questioning humongous payments to lawyers, then AG Ouko said: “No evidence was provided to indicate the nature of the court cases. It is also not clear how so many legal cases arose within a year of the county assembly’s existence. It is also not clear how they were concluded.”
The Ethics and Anti-Corruption Commission (EACC) has launched investigations into multi-million shilling dealings between 25 law firms and the Nairobi County government.
The probe is focused on payment of legal fees by City Hall to the firms between 2013 and 2020.
The EACC, in a letter dated January 21, wants the county secretary to furnish it with the specific case files handled by the 25 law firms between 2013 and 2020, including letters of instructions and contract agreements.
“The commission is undertaking investigations at Nairobi City County in respect of payments of legal fees to the following firms. To facilitate our investigations, kindly but urgently furnish us with the original documents in respect to the mentioned firms,” states the letter.
The law firms
The firms include Irungu Kang’ata and Co. Advocates, Osundwa and Co. Advocates, Kwanga Mboya and Co. Advocates, Kithi and Co. Advocates, Wanjiku Maina and Co. Advocates, E.Onyango and Co. Advocates, J.O Magolo and Co. Advocates, Ario Advocates, Maskam ( Asanyo), E.N Omoti and Co. Advocates and Ogeto Ottachi and Co. Advocates.
The EACC further asked to be furnished with all payment vouchers, cheque counterfoil and a list of pre-qualified law firms for the period under investigation.
This is in addition to minutes approving the list of pre-qualified law firms and any other documents relevant to the probe.
MCAs’ complaints
The probe comes a few months after Nairobi MCAs raised concerns over the payment of large amounts of money to some law firms yet the county has not won any court cases recently.
The ward representatives also made allegations of favouritism by City Hall in the clearance of lawyers’ bills instead of small scale suppliers owed less money.
City Hall paid legal fees to the tune of Sh795.9 million out of the Sh2.5 billion allocated for clearance of all pending bills, locking out other suppliers and contractors.
As a result, MCAs, through a motion by Silvia Museiya (nominated), called on the county executive to come up with a policy to streamline outsourcing of legal services.
The legislators alleged that the outsourcing has turned into a business, with some lawyers colluding with officers in the executive, including those in the office of the county attorney, to siphon money from the county.
They claimed an unnamed law firm was paid Sh250 million despite not carrying out any legal transaction with the county government.
Audit report
Painting a grim picture of the state in the legal department at City Hall, the Auditor-General’s report for the 2016/2017 financial year revealed the department spent Sh592.4 million on unauthorised payments.
According to the report, the department spent Sh645.3 million on legal costs against an approved budget of Sh105 million.
Interestingly, the bulk of the money, Sh314.4 million, was paid to some 12 firms. The payment was not included in the Integrated Financial Management Information System (Ifmis).
In February 2019, the assembly’s Public Accounts Committee found that the legal department spent Sh480 million, more than four times the Sh100 million budgeted for.
The payments were made without documentary evidence, including a total of Sh318.4 million which was sent to several lawyers.
In the 2018/2019 financial year, a total of Sh795.9 million was paid to 48 law firms yet only eight raised fee notes.
During that financial year, 335 cases were handled by the legal department but only 12 of them were successful. The rest were either withdrawn or lost.
City Hall Capture By Cartels
When President Uhuru Kenyatta established the Nairobi Metropolitan Services in March last year, he tasked Major General Mohamed Badi and his team with dismantling cartels in Nairobi County and ending corruption.
The President had been alarmed by runaway corruption at City Hall, that had made service delivery impossible.
He said the cartels had a vice-like grip on the county government services, from garbage collection to parking, water supply and issuance of permits.
At the time, Governor Mike Sonko was facing a Sh357 million corruption charge, which eventually saw him barred from accessing his City Hall office.
Several corruption-related investigation cases had also been opened by different investigative agencies, ranging from multi-million garbage tender awards to the multi-billion stadiums construction saga.
However, after a short lull following the impeachment of Mr Sonko in December last year, with transition of power from Nairobi County Assembly Speaker Benson Mutura to Deputy Governor Ann Kananu, the cartels are back, this time bolder and more ferocious.
Payments to lawyers, utilisation of Covid-19 funds, AAR-City Hall staff medical scheme and Covid-19 relief programme are just but some of the brewing scandals that could yet again sink the city county back to its old ways.
Nairobi County Assembly Minority Chief Whip Peter Imwatok, who appeared to be at the forefront of the transition at City Hall, even at times directing Ms Kananu during press briefings, has in the past weeks turned into a whistleblower, lifting the lid on the happenings at City Hall.
The first was in a letter dated April 27, 2021, where the Makongeni MCA wrote to the Ethics and Anti-Corruption Commission (EACC) and the Director of Public Prosecutions to investigate “suspicious and skewed” payments to 13 law firms by the Ms Kananu-led administration.
In the letter, Mr Imwatok alleges that more than Sh410 million was irregularly paid to the law firms with no information on the cases handled.
The second-term county legislator claimed the payments were made between February 9 and March 30, 2021.
Nairobi acting Governor Anne Kananu.
In January, the EACC had written to City Hall about investigation of 25 law firms over an alleged payment of Sh500 million-worth of legal fees to the law firms with the anti-graft agency following specific case files handled by the law firms between 2013 and 2020, including details of the cases, letters of instructions and contract agreements.
“It has come to our attention that even before the investigations with regards to this matter commenced, if ever they did, the Nairobi City County proceeded to pay the lawyers monies amounting to over Sh410 million,” read in part the letter.
But before all that could settle, another bombshell was dropped. Mr Imwatok wrote to the EACC and the DPP, asking them to investigate a payment of Sh275 million to suppliers.
He claimed that some seven companies, acting as “proxies to MCAs or members of county staff” undertook works or supplies in the Environment Department and/or supplied food as part of the Nairobi County Covid-19 feeding programme.
The ODM representative claimed that the county government had lined up the companies for payment for the services yet there is “no food that was ever supplied to the county or distributed to anyone”.
“It is absurd that taxpayer’s money amounting to Sh275 million shall be paid to companies belonging to MCAs or their proxies for either services and/or goods that were never supplied,” said Mr Imwatok in a letter dated April 26.
The Sh84 million feeding programme was to benefit 127,500 most vulnerable people in Nairobi’s informal settlements with foodstuff such as maize and wheat flour, sugar, rice, loaves of bread and powdered milk. Other items include blankets, sanitary towels and basins distributed to cushion them against the negative effects of the pandemic.
The programme was to run for three months between April and June 2021, with distribution done every week across Nairobi’s 17 sub-counties.
According to documents, the seven companies were given contracts worth between Sh3 million and Sh22 million to supply the items.
Procurement process
However, most MCAs have said their wards are yet to get any supplies, while those who were fortunate to receive the items said the package was not more than 50 bags.
“I not only have the contract but the invoice, the payment transaction, the CR12 of the companies and I have forwarded all to EACC. I am questioning the procurement process and I have evidence of procurement officers saying the processes were done without their consent,” said Mr Imwatok.
Then there is the controversial Sh1.7 billion AAR Insurance Kenya medical contract for City Hall staff, which has also been thrust in the spotlight.
Some MCAs have called for investigations into the deal, alleging that it has been turned into a cash cow by certain county officers, instead of benefiting the employees.
Waithaka MCA Antony Kiragu last month called on EACC and DCI to investigate the deal, claiming some county officials have been making money from the AAR-City Hall deal, with payments being staggered by the county government to give the individuals a platform to do business with the funds.
“The reason the payments are being done in phases is that people want to do business with AAR money. The officers want kickback from AAR,” charged Mr Kiragu.
Mr Kiragu’s assertions came hot on the heels of an announcement by Nairobi County Assembly Majority Leader Abdi Guyo that he will bring a motion to form an ad-hoc committee to look into the AAR-City Hall medical scheme.
The Matopeni MCA said the committee’s brief will be to investigate how AAR was awarded the tender, what services they are providing to staff and whether there is value for money.
But that is not all. Maj-Gen Badi and Ms Kananu were also summoned by Senate to respond to “cross-cutting issues” involving the NMS and City Hall over the expenditure of Covid-19 funds.
The summons came after a damning report by Auditor General Nancy Gathungu on the utilisation of Covid-19 funds by counties, which fingered NMS for a number of irregularities involving Sh294.38 million received from the national government in June 2020.
Some of the irregularities involved single-sourcing of a Sh64.9 million tender for design and maintenance of a makeshift isolation centre, irregular cash withdrawal of Sh32 million from a KCB account for facilitation of health workers and Sh120 million payment to frontline health workers without a budget.
The auditor could also not establish the whereabouts of some Sh182.07 million donated by the Danish International Development Agency and the county’s own contribution to boosting the war against Covid-19.
Nairobi County Assembly Majority Leader Abdi Guyo.
Mr Imwatok claim that cartels are back at City Hall in full swing, taking advantage of the vulnerability of Ms Kananu “who is seemingly out of touch with the reality of being an acting governor”.
“The county is opaque and nobody is in charge. It is everyone for him or herself,” he said.
A nasty falling out between Jubilee and Orange MCAs had been brewing following the revelations, with Mr Imwatok under siege as some ward representatives from his own party began collecting signatures to oust him as Minority Whip.
He was accused of using the party’s name in bad light at the county government to advance his selfish interests, allegations, which he denied.
“I will not be cowed from exposing corruption at the county government. Let the masters of corruption be prepared to face me to death. I am ready for the challenge as this is not the first time I am facing such threats,” he said.
The power tussle was seen Jubilee MCAs instigate the removal of Public Accounts Committee chairperson Wilfred Odalo of ODM, with 15 MCAs — three from ODM and 12 from Jubilee — appending their signatures.
But in retaliation, the Raila Odinga-led party withdrew its membership of the watchdog committee, citing intimidation and coercion of members into signing the removal of Mr Odalo as the chairperson.
The three MCAs who supported the removal of Mr Odalo — Jared Okode, Clarence Munga and Lawrence Otieno — were also withdrawn from the committees they serve in.
However, Mr Guyo hit back, saying the committee was to continue operating as long as it has a quorum.
He added that a chairperson of any committee serves at the pleasure of members and once that confidence is lost, the chair cannot force themselves on the members.
“It is not Jubilee’s business if they (ODM) decided to pull out. The chair has been accused of gross misconduct, which will taint the image of the assembly. The members have the right to choose their chair, who will still be from opposition,” said the Matopeni MCA.
Kenya Insights has documented well the city hall cartels and their nodes of operations. Guyo is the supremo and is the self proclaimed governor and speaker of the county government.
One wonders why and how this is possible given that Kananu and Badi are in position of control. As a woman we’re told she’s scared of Guyo and follows her commands, you can remember she was also fingered with Guyo in a Covid19 supply scandal. As for Badi, the two are bound by religion ties which has made them get along well giving Guyo to go about his deals with Badi looking the other way conveniently.
Despite the county drowning in debts and getting dragged in courts, Kananu under siege of cartels has been approving misuse of funds. Kenya Insights is informed that MCAs are flying out of the country on a weekly basis for unwarranted international trips costing taxpayers hundreds of millions.
In a bizarre move, we’re informed of a trip earlier this year where the budget committee traveled to Turkey to hold a board meeting there on how to plan the budget and pay pending bills. We’re adequately informed that the weekly trips of committee members mostly to Dubai cost Sh1M for each member. This is the new way of stealing and scheme of Guyo and cartels to buy loyalties of the MCAs who’re not willing to lose the privileges and will support any duty paper tabled in the assembly.
EACC should investigate this fraud scheme.
In the subsequent article, we will expound how an elaborate scheme to take over Nairobi by the cartels for the final eating after NMS term expires has been drawn. The plan that includes returning embattled Jacob Ngwele who by the way is billing city hall for his frivolous court cases and how his case in the court of appeal that is being handled by a former city hall staff now with judge Warsame is being mishandled and the judge swallowed in the scam. We expound on how the current acting clerk is related to the disgraced clerk Ngwele and generally the spirited effort behind bringing Ngwele back as championed by Guyo.
The silence from NMS is by design, we’re informed that a senior NMS official has his mouth shut given that he bought a petrol station franchise that is on a rapid expansion across the country and linked to land grabbing. We shall tell you more when the papers are right.
Kananu we’re informed is scared of getting impeached hence the soft hands on the cartels, unknown to her, she’s being fattened, handed scandals as she watches naively, and just like in Sonko’s she’ll be thrown under the bus and live in courts very soon.
”Ann Kananu is sonko but in a woman form.” Concluded a City Hall source speaking to Kenya Insights.
Nairobi County Assembly is never short of drama. Former speaker Beatrice Elachi after endless fights, threw in the towel and resigned, Majority Whip Abdi Guyo has had his share of fight, a veteran in City Hall life, he was thrown out of his position before he got reinstated. The two leaders haven’t been in good books with each other for long. It all began the moment Elachi took over as the speaker assuming a managerial position and having a bigger say in the operations of city hall, at that time Guyo was in the assembly’s board and calling shots, this was a classic case of putting two rival bulls under same shade.
Their rivalry has played has played openly in the public arena. In 2019, Guyo sponsored a motion to impeach Elachi, it sailed and only to be reinstated later through a court order. Guyo ganged up with his goons and stormed into Elachi’s office in a well documented fiasco.
In the heights of the troubles, the then governor Mike Sonko intervened and eliminated Guyo as the majority leader.
Sonko in his dismissal letter said Guyo was a predicament in his implementation of jubilee policies and that his sustained attacks and intimidation towards the speaker and county staff could no longer stand.
Sonko has effectively nominated, Maringo Hamza MCA, Hon. Mark Ndung’u to take over from Guyo as the majority leader. Guyo fought his ways and was later reinstated by Raphael Tuju, sources privy to the intense lobbying leading to the reprieve confides that the Sec Gen gave in after getting his hands greased. Tables have since turned on Tuju, he’s facing imminent ouster from the jubilee party.
Guyo has had run ins with the authorities, having been in City Hall for over a decade since he started as a councilor, has a wide scope of networks, the man now eyeing a parliamentary seat has amassed wealth that doesn’t align with his salaries, Guyo has been a subject of investigations over suspicions of corruption but has escaped the dragnets thanks to his networks in the investigating bodies.
Guyo has been under EACC investigations in which Investigators found a direct link between Guyo and Flexilease Limited, one of the garbage collection companies implicated in a scandal that EACC was investigating how money from the bank accounts of the garbage collection companies ended up in Sonko’s private bank accounts.
Flexilease was being investigated for receiving payments for services not delivered and making the Nairobi County government pay for ghost workers. Guyo, a close ally of National Assembly Majority Leader Aden Duale, is also being investigated over a scam involving public toilets in the city. He is accused of working with shadowy businessman identified as Abbas Khalifa to grab all public toilets.
According to sources close to the investigations, Guyo and Abbas pocket at least Shs 1 million each every week from the public toilets. Investigators were also probing the source of Guyo’s sudden wealth. He is said to be building a huge shopping mall in Isiolo and has properties spead across the city. One of our preying birds is telling us he recently bought an apartment in Buru Buru for one of his concubines, a journalist attached to City Hall.
Guyo recently got mentioned in Covid-millionaires saga in which he was accused of money meant for the vulnerable.
The fresh scam involved distribution of relief food to vulnerable families in Nairobi’s informal settlements as a cushion during the COVID-19 pandemic an idea of controversial Matopeni MCA Abdi Guyo. The scandal would see Sh84 million paid to shadowy companies associated with him and Kananu.
Six shadowy companies were paid for the supply of foodstuffs and other necessities but it was flagged by MCAs who alleged that nothing was supplied and money pocketed allegedly by Guyo and associates.
The foodstuffs that were to be distributed in the feeding programme include sugar, rice, loaves of bread and long-life milk, maize and wheat flour as well as other items such as blankets, sanitary pads and basins.
‘I want to confirm that this is a COVID-19 billionaires scandal since some of the slums listed to have benefited from the feeding programme never received the said foodstuffs,” said one of the ODM MCAs when we contacted him.
Here is a breakdown of the monies paid to the six companies associated with Guyo and his cronies at City Hall.
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We also conducted a search of the companies at the Registrar of Companies and we confirmed that the six companies are linked to Guyo and his cronies at City Hall. Here are the results of the CR12 from the companies.
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According to sources at the Nairobi City County Assembly, it would be difficult for the Ethics and Anti-Corruption Commission to prosecute individuals at the center of the scam since the EACC Deputy CEO and Director of Investigations Mohamud Abdi is a close associate of Guyo in their get rich business deals at City Hall.
Sonko on several occasions accused Abdi of being corrupt and wanted him stopped from investigating him. There are videos that were floated online allegedly of Guyo taking bribe stashed in a gunny bag to Abdi. At the time, Guyo was leading the battalion in the impeachment of Sonko. Sonko alleged that Guyo with his close ties with Abdi ganged up to frustrate and implicate him in dirty deals. Sonko in the same bad blood had accused Abdi of colluding with cartels to grab a land something he attributed to his tribulations with EACC.
“I would generally have a problem with individuals misusing public offices to cover-up for their crimes, while at the same time using intimidation, witch-hunt and arm-twisting tactics against those genuinely committed to fighting corruption and impunity in Kenya.” Sonko said when he accused Abdi of using his position as EACC commissioner to fraudulently facilitate grabbing of a land to his friend.
“In May 2014, one JOHNSON NYAGA KIBIRA (a former Nairobi County employee) attempted to build a Boundary Wall and a Gatehouse on Land Reference Number NAIROBI/BLOCK 103/793 in Mugoya Estate on Muhoho Road, South C which is a public utility plot earmarked for ECDE Centre/Playground for children in Mugoya Estate. When Mugoya Estate Residents reached out to me then as the Senator of Nairobi County, and we confronted the land grabber, we found that he purported to have a title for the land issued by County Council of Nairobi on 20th September 2012 although the land had been a playground for children since the estate was built.”
“On 27th May, 2014, we agreed with the residents that they report the matter to EACC and in a letter on the same date, Catherine Njiru of P.O. Box 59041-00200Nairobi wrote on behalf of the Estate Residents to EACC requesting for investigations into allegations of suspected fraudulent/irregular acquisition of the public land Plot Number NAIROBI/BLOCK 103/793 in South C. Evidence shows that the allegations of grabbing of that land were true and merited investigations as a matter of urgency.”
“On 16th July, 2014, EACC Director of Investigations Abdi A. Mohamud responded to Catherine Njiru vide letter Ref. No. EACC. 6/16/1 Vol, XXVIII (69)-46286noting receipt of the letter dated 27th May 2014. The letter acknowledged the allegations of suspected fraudulent/irregular acquisition of public land and promised to take the necessary steps to verify the same to inform action, as need be. Interestingly, the Director of Investigations also advised the Complainant that she “may seek further intervention from the National Land Commission” even though she had indicated it as a public land.”
“However, despite the undertaking, Abdi A. Mohamud as EACC Director of Investigations refused to investigate the complaint of Catherine Njiru at all, contrary to section 25 of the Anti-corruption and Economic Crimes Act, 2003 which makes it mandatory for EACC to investigate every complaint unless it dismisses the same in writing. It took another report to EACC 4 years later on 23rd July 2018 for the Commission to launch inquiry into the grabbing of the subject plot.”
“According to the intelligence I have, instead of investigating the complaint upon receipt, the EACC Director of Investigations Abdi A. Mohamud immediately used the information obtained from the whistle blower on the grabbing of the public land in South to appropriate the land for himself and his personal friend Isaack Abdullahi Ibrahim and the same plot had been transferred to him by 11th December 2014.“ Said Sonko in an explosive expose.
Fast forward to recent updates, while the former speaker left City Hall to become the Gender and Public Service CAS, troubles from the first have never stopped following her.
In the latest frenzy, the assembly adopted a report that recommended investigative bodies to probe Elachi for violation of the law and abuse office by usurping the powers of the County Assembly Service Board where she served as a chairperson board.
In its finding, the report suggested that promotion and recruitments of staff that took place in 2020 during Elachi’s tenure were against the law and were declared null and void.
However, Elachi defended herself and noted that it was pure malice for the assembly to call her ‘rogue’ as she was finishing a promotion process initiated by the late Alex Magelo who was her predecessor.
“Never has it been on record that I stole money while I was the Speaker. Everything I did is on record and It was not Elachi as a person but as the chairperson of the county assembly board. This is pure malice,” Elachi added.
Abdi Guyo who’s once again spearheading the calls for investigations on the speaker, insisted that Elachi is solely responsible for the irregular appointments.
”“The report is shocking and it reveals that everything was done following a decision by one person and not the board. This is an abuse of power,” Majority leader said.
Kenya Insights has obtained copies of the document that the scandal emanates from and can authoritatively say the decision for the promotions was approved and signed by the board members and not an individual as alleged by Guyo.
Journalists covering the City Hall scandals have become biased according to observations. Our birds say they’ve been properly compromised by the cartels to tell stories that are only favorable to them and in pushing convenient narratives. Brown envelopes have become part of the daily menu.
We’ve also obtained documents showing that Deloitte Kenya, was contracted by the County to research and recommend structural changes at City Hall who would improve service deliver. Deloitte was paid Sh5M.
To implement the recommendations, 2 more board members had to be recruited since it wasn’t fully constituted as recommended by the law. This recruitment process was presided over by the Public Service Commission and Strathmore University. The 2 members formed the part of directors who approved the questioned promotions.
Elachi is now headed to the courts to sue the Nairobi County Assembly for defamation.
Elachi said the assembly has continued to tarnish her name despite her willingly leaving the institution 14 months ago.
SPEAKER: Former Nairobi County Assembly Speaker Beatrice Elachi.
In what perhaps she saw coming, Elachi who terms all this political witch-hunt and settling scores, knew Guyo and alike would at one point come after her in leaving office and she left office with all copies of files she appended her signature for defense.
“We must do better than what the men do in this political arena. When I was resigning I made sure I had all copies that had my signatures and walked away with them.” Elachi said when she met women aspirants and the media at an event hosted by Journalists for Human Rights.
Elachi did this so that when someone tried to accuse her of corruption or any office related misappropriation, she has the documents to back her up.
“I realized that when you don’t steal money people will create stories like abuse of office. When you have documentation, you leave them to create the story then you come with your file and ask them to show you the abuse of office claims,” she said.
As accusations continue fly around, Guyo who’s said to be a supremo in City Hall, has become so powerful that the General Badi isn’t able to contain him, the two are said to be close together and coming from same ethnic group, Abdi who’s also close to a relative to the president and MCA, has managed to get into the good books with the president who is likely unaware of how dirty Guyo moves. Badi vowed to dismantle the cartels of city hall but that’s a wet dream.
So entrenched in looting public funds that Kenya Insights has learnt that Committee members are bribed with unwarranted trips, stipends. Recently, budgeting committee traveled to Turkey to discuss how to pay pending bills and budget for the country. This is something they could easily do in the boardroom or an hotel in the city or if it’s the itch of traveling, Mombasa or Naivasha would do, but no, public funds must be misused, such trips out members at the mercy of leaders to support their agendas before the table.
We’re also aware that the same committee is planning for a similar trip to Dubai to further misuse public funds while normal Nairobian thrive in burden. In the chain of looting, the devolution ministry officials who give approval to the trips are roped in. We’re told for every approval/per member, Sh5,000 bribe is given.
In the middle of the employment chaos, Guyo is accused of irregularly recruiting his relatives including a brother-in-law, cousin. Former clerk Jacob Ngwele who’s a close associate of Guyo is also accused of securing a job for one of the officers in investigative agencies and who was investigating the Trip by an associate Abass to Dubai. This he allegedly did to stop the Investigations.
In the corruption web at City Hall is a lady only identified to us as Nancy who is married to a banker with Central Bank, when Ngwele and team lost control of accessing funds , the husband played a big role in accessing the cash. Another lady who previously worked for City Hall and now with Judge Warsame who gave a favorable and controversial ruling in favor of Ngwele it remains a puzzle how in the ruling Warsame incorporated Edward Gichana who wasn’t part of the suit neither applied to be enjoined. Ruling rose suspicions and foul play. The web is wide and suspect.
It is an intricate web, what we’ve provided is just a shallow grave, in subsequent articles we shall dive in deeper. For now, a multi agency investigation should be initiated to unearth the truths and separate facts from fictions.
