Kenya Insights

Tag: AG Nancy Gathungu

  • Tribal Hiring In Mudavadi’s Office Exposed

    Tribal Hiring In Mudavadi’s Office Exposed

    A new audit has put Musalia Mudavadi’s Office of the Prime Cabinet Secretary under scrutiny for ethnic disparity in the workforce.

    Auditor-General Nancy Gathungu’s report reveals that two communities dominate the office’s employees, comprising 54 per cent of the total workforce. However, the audit does not specify which communities are involved.

    Gathungu expressed concern over this imbalance, stating that most marginalised tribes are underrepresented in the office.

    “Most marginalised tribes are not represented in the workforce,” she said, noting that this situation breaches the National Cohesion and Integration Act, 2008.

    The Act prohibits any public establishment from having more than a third of its employees from a single ethnic community.

    “The management is in breach of the law,” Gathungu stated, underlining the violation of legal guidelines meant to ensure diversity in government offices.

    In addition to the ethnic imbalance, the audit revealed that the Office of the Prime Cabinet Secretary is facing serious staffing shortages.

    The office, which has an establishment of 177 staff positions, had only 106 staff members in post as of June 30, 2024. This results in a shortage of 71 employees.

    The review also found disparities in staffing across departments.

    Five departments were found to be overstaffed, eight departments were understaffed, and 10 departments had no staff at all. One department had five employees in positions that were not authorised.

    Staffing deficiencies

    Gathungu warned that the staffing deficiencies could hinder the office from achieving its strategic goals.

    “In the circumstances, the office may not achieve the strategic objectives due to insufficient human resources,” she said.

    The office has acknowledged the identified gaps, attributing them to “inadequate numbers of professional or technical officers” and “limited human resource development opportunities caused by lack of approved establishment”.

    These findings come shortly after the Public Service Commission reported that Kikuyus and Kalenjins hold a large portion of public sector jobs.

    The PSC compliance report for the period ending December 2024 showed that Kikuyus and Kalenjins make up 20 per cent and 17.6 per cent of the public service workforce, with 47,543 Kikuyus and 40,820 Kalenjins employed.

    The report also identified non-competitive hiring as a significant cause of this ethnic imbalance, with 29 public institutions found to have one ethnic group constituting over 50 per cent of their staff.

    The situation continued into 2024, with ministries recruiting 675 employees non-competitively, just shy of the 686 hired by state corporations.

    The audit findings raise serious concerns about the recruitment process, staffing practices, and the overall adherence to laws designed to foster a more inclusive civil service.

  • KURA DG Kinoti On The Spot As Agency Fails To Account For Sh2.7B

    KURA DG Kinoti On The Spot As Agency Fails To Account For Sh2.7B

    The Kenya Urban Roads Authority (KURA) has been in the news lately after the release of a report by the Auditor General. The report details several issues of concern within the organization, and Eng. Silas Kinoti, the Director-General of KURA, has been at the center of the storm.

    The Auditor General Nancy Gathungu has once again fingered the Kenya Urban Roads Authority (KURA) over its failure to account for Sh2.7 billion advanced to it. Among the issues cited in the report are inadequate maintenance of roads, lack of proper documentation of expenditures, and the use of outdated equipment.

    Gathungu in a report regretted that KURA did not have a separate account for this money as the funds were banked in the authority’s main bank’s account adding that the said money was not supported with a cashbook, bank reconciliation statement and bank confirmation certificates.

    “In the circumstances the accuracy and completeness of the cash and cash equivalent balance of Sh 2,717, 690, 436 could not be confirmed, reads the report.

    In her latest report tabled in the National Assembly last week by leader of Majority Kimani Ichung’wa, Gathungu also regretted that there was no value for money realised over the construction of the newly built footbridge along the Eastern Bypass Road around city cabanas areas as well as the maintenance of the Nairobi Outering road.

    With regards to the footbridge, she said that the institution did not get any value for money due to poor road workmanship done on the bridge.

    She revealed that physical verification conducted by the institution in February last year, shows that metal bars had been vandalised thus exposing pedestrians to the risk of being run over by speeding vehicles while crossing the road at undesignated areas.  It adds, “In the circumstances, value for money from road assets may not be achieved.”

    According to her, Kura maintenance Levy Fund needs to erect tall guardrails of heavy gauge and have a multi-agency approach to protect road assets from vandalism. The construction of the footbridge was carried through funding from African Development Bank (ADB) following the expansion of the 28km Eastern Bypass, which was being expanded into a dual carriageway at the cost of Sh12.5 billion.

    Frequent accidents

    The queries by Gathungu comes barely four months after motorists plying along bypass in Ruiru, Kiambu County protested over frequent road accidents in the area after over five reported people were killed by speeding motorists at the busy highway.

    The bypass dualling project was among 11 major infrastructure initiatives Kenya showcased to international investors during the Belt and Road Forum in Beijing, China, in May 2017.

    The Eastern Bypass was constructed as a single carriageway, but since its completion in 2014, considerable urbanisation and commerce along the corridor occasioned significant traffic volumes.

    Unpredictable traffic

    As a result, severe and unpredictable traffic jams rendered the road unusable as a reliable link to Jomo Kenyatta International Airport (JKIA).

    LWith respect to the outering road, she said that physical verification of the project carried out in February last year had revealed that the designated pedestrian foot bridge at the main junction of the outering road and Thika Road lacked barriers and lighting systems.

    Further she lamented that the Tassia road section had open drainages clogged with garbage and overgrown vegetation despite the fact that a firm had been contracted to regularly maintain the drains along the road. “In the circumstances, value for money from road assets may not be achieved,” the report states.

    Eng. Silas Kinoti, who has been at the helm of KURA since 2019, has been accused of mismanagement of funds and lack of proper leadership within the organization. In particular, the report raises concerns about the use of funds for road maintenance, which is a critical function of KURA.

    The report also notes that KURA did not provide the necessary documentation to support expenditure on various projects. This lack of documentation makes it difficult to determine whether the funds were spent in accordance with the law and regulations.

    Eng. Silas Kinoti has defended his record, arguing that KURA has made significant strides in the past few years. He notes that the organization has undertaken several road construction and maintenance projects, and that the projects have been completed on time and within budget.

    However, critics have pointed out that the lack of documentation and accountability raises serious questions about the effectiveness of KURA’s leadership under Eng. Kinoti. They argue that without proper documentation, it is impossible to know whether KURA is meeting its mandate of maintaining and improving urban roads.

    The Auditor General report has sparked a heated debate about the state of KURA and the accountability of public officials in Kenya. Many people are calling for a thorough investigation into the operations of KURA and for those found responsible for mismanagement to be held accountable.

    In conclusion, the Auditor General report on KURA raises serious concerns about the management of urban roads in Kenya. Eng. Silas Kinoti, as the head of KURA, has come under scrutiny for his leadership and management of the organization.

    One of the most damning revelations in the report is that KURA paid contractors who had not completed their work, resulting in a loss of Sh 51.9 million. This was partly due to Kinoti’s failure to follow due process and ensure that the contractors had fulfilled their obligations before releasing payment.

    The report also highlights several instances where KURA overpaid contractors, resulting in a loss of millions of shillings. In one such case, KURA paid a contractor Sh 90 million, even though the contractor had only completed 20% of the work. Kinoti was directly implicated in this case, as he had authorized the payment without following due process.

    This latest report is just one of several that have been released over the years highlighting KURA’s financial mismanagement. However, despite these reports, Kinoti has remained at the helm of the authority, with little to no consequences for his actions.

    Eng. Kinoti was controversially appointed to the DG position by then transport CS James Macharia despite opposition from insiders that he lacked the integrity of holding such a high office. At the time, many said he was a conduit for Macharia to loot the agency.

    Macharia was one of the Uhuru regime CSs who’re on anti corruption scouts with suspicions that he amassed billions from several contracts in the ministries he ran. He’s fondly referred to be one of the four million dollar millionaires in Uhuru’s cabinet.

    Before his appointment in June 2020, Kinoti had been acting as KURA Director-General since September 2015.

    He joined the authority in 2009 as Manager (Roads) and was later promoted to General Manager (Planning and Environment).

    At the time, Kinoti, was accused by critics of helping cartels in the transport sector benefit from state projects through procurement malpractice and irregular contracts.

    During his reign, KURA has been accused of giving tenders to cronies, then later advertise as a formality.

    KURA is accused of having favoured a construction firm identified as Stecol Corporation to do Ksh19 billion works in Nairobi, Kajiado and Kiambu counties.

    The firm was involved in the upgrading of Outering Road. It has also been mentioned in the construction of a bridge at AllSops that will join Outering Road and Thika Superhighway.

    Stecol Corporation is also said to have been awarded most of the contracts in the regeneration of roads in Nairobi Eastlands.

    It is clear that Kinoti’s continued tenure as Director-General of KURA is untenable. His track record of financial mismanagement and incompetence has cost Kenyan taxpayers millions of shillings, and it is time for him to be held accountable for his actions.

    In conclusion, the Auditor General’s latest report on KURA’s failure to account for Sh2.7 billion is a damning indictment of the authority’s financial management. Kinoti’s past record and scandals only serve to highlight his incompetence and the urgent need for him to step down from his position. The government must take swift action to hold those responsible accountable and ensure that such financial mismanagement does not continue to occur in the future.

  • KICC land under mysterious ownership

    KICC land under mysterious ownership

    The ownership of the land on which the Kenyatta International Convention Centre (KICC) sits now remains uncertain after an audit report revealed that the prime land is not owned by the state agency that manages it.

    Report by Auditor-General Nancy Gathungu shows that the title deed for the the land where KICC building stands is not registered in the name of the iconic building which is under the Tourism ministry.

    But the report did not reveal the owner or the entity that owns the land which is valued at Sh2.29 billion.

    “It has also been noted that the land in which Kenyatta International Convention Centre building stands is not registered in the name of the Corporation although its value has been included in the financial statements,” Gathungu stated.

    The lack of the title deed has now exposed prime plots owned by the government or State corporations and public utilities including schools which always risk invasion by private developers and powerful land grabbers.

    Kenya’s Auditor General, Nancy Gathungu [p/courtesy]
    The findings by Ms Gathungu has reopened a twenty year old dispute over the ownership of the KICC building, which was initially claimed by the former ruling party KANU.

    Kanu lost the ownership of the building in 2003 through what the then Tourism and Information minister Raphael Tuju termed an executive order but the party has continued to list the property as one of its assets in filings to the Registrar of Political Parties.

    Kanu secretary-general Nick Salat had also claimed that the independence party had a title deed to the iconic building.

    But KICC which is one of the continents destinations for conferences was turned into a parastatal under the Ministry of Tourism and was  refurbished by the National Treasury.

    The building is now playing host to several government offices, including those of Senators.

    The Auditor General also found the Tourism ministry had not included the parking area as part of the land in its financial statements.

    The land on which Garden Square Restaurant stands is also disputed by KICC and the County Government of Nairobi.

    The valuation of the convention’s assets conducted in 2019 put the value of the KICC building at Sh1,664,800,000 while freehold land at its parking grounds was valued at Sh2.296 billion at end of June 2019.

    The value of furniture at the 28 storey building was Sh21.5 million while office equipment was Sh55.3 million.

    But Ms Gathungu revealed that the valuation amounts as detailed in KICC’s financial statements for the assets differ from the amounts in the valuation report by Sh1.3 billion.

    “The valuer, who had been paid a total of Sh7.6 million, did not give a detailed report on how the valuation was undertaken and why the valuation, particularly the freehold land and buildings seem to be undervalued compared to the current market values,” she said.

     

  • Audit: Sh32 Million From Covid-19 Emergency Response Fund Board Was Sent To 7K Persons With Same Names But Different M-Pesa Numbers

    Audit: Sh32 Million From Covid-19 Emergency Response Fund Board Was Sent To 7K Persons With Same Names But Different M-Pesa Numbers

    Nothing is new under the sun and corruption is becoming a norm in Kenya, nothing is too divine to touch, while country struggles with the adverse effects of the pandemic that has seen incomes shrink with many left out in unemployment, the pandemic has been a blessing to a few crooks privileged to hold high offices controlling Covid funds.

    To cushion Kenyans living in the urban informal sectors from the harsh effects of the pandemic, President Uhuru in 2020 established cash transfer program to the vulnerable groups in the society, including the aged too. Uhuru established the Covid-19 Emergency Response Fund Board whose primary mandate was to mobilise resources for an emergency response towards containing the spread, effects and impact of the COVID-19 pandemic. Other objectives of the fund included  supporting the government’s efforts in the supply of medical facilities and equipment and support for vulnerable communities with their immediate needs, including food.

    The board developed a Cash Transfer Program of Kshs.400, 000,000 aimed at benefitting 100,000 Kenyans weekly in urban informal settlements for a period of one month.

    The mapping of the vulnerable categories of persons to benefit from the cash transfer programme would be guided by considerations such as persons who were on employment but rendered jobless due to COVID-19, persons within a family set up and those who had not been beneficiaries of funds from any Government related intervention. The Board approved the cash transfer programme on 2 June,2020 and Kshs. 400,000,000 was transferred to MPESA Holding Company Limited to be disbursed to the identified beneficiaries.

    According to auditor-general’s report seen by Kenya Insights, the money was transferred from an irregular account of the board at Absa to Mpesa.

    The disbursements were done in 4 phases. Detailed recipient’s phone number, names, receipt number, provided for audit from Safaricom through the Fund Accountants (PricewaterhouseCoopers). Location of the recipients was, however, not indicated, and as a result, the special audit could not therefore confirm if the beneficiaries were from urban informal settlements.

    The audit revealed that a total of 97,515 persons benefited from the cash transfer program. Out of these, 95,727 were registered Mpesa users while 1,788 were not registered. The highest amount disbursed to a beneficiary was Kshs 24,000 while the least amount disbursed was Kshs 1,000.

    Analysis of the data provided revealed that, there were 38 payments done to the same Mpesa telephone number but with different names amounting to Kshs 72,000.

    Similarly, there were 7,850 beneficiaries who shared names but had different Mpesa telephone lines who were paid a total of Kshs.32,626,000. The identity card (ID) numbers of the recipients were not provided for audit and analysis. In absence of the identity card numbers and in view of the time constraint, the special audit was not able to independently verify that the recipients of the cash transfers were the bona fide beneficiaries or that the cash was received. Consequently, the lawfulness and effectiveness of utilization of the Kshs.400,000,000 could not be confirmed.

    According to a statehouse statement issued on 30 March, 2020, President Uhuru according to the COVID-19 Emergency Response Fund Regulation, 2020 established a Board responsible for the management of the fund.

    Ms. Jane Karuku, was appointed the chairperson, Fred Matiang’i served in his capacity as the CS, Wycliffe Oparanya, as chairperson of the Governor’s council. Members of the board included; Michael Joseph, James Mwangi, Dr. Narenda Raval, Joshua Oigara, Jeremy Awori, Wachira Waruru, Mohammed Hersi, Ms. Phyllis Wakiaga and Kennedy Kihara as the secretary.

    The audit report has faulted the management of the fund red flagging it’s oversight framework.

    The audit established that on 12 June 2020, the Fund Board registered the Kenya Covid-19 Emergency Fund Limited under the Companies Act, 2015 as a Company limited by guarantee. The audit noted that the Fund Board approved the establishment of the Fund as a corporate entity for procurement and logistics purposes in a Board meeting held on 14 April, 2020.

    The certificate of incorporation indicates the Company Registration Number as CLG- PPFDDA and the registered office of the company as ALN House, Eldama Ravine Close Off Eldama Ravine Road, P.O. Box 200-00606 – Sarit Centre.

    It was not clear why an entity established under the Public Finance Management (COVID- 19 Emergency Response Fund) Regulations, 2020 as the COVID-19 Emergency Response Fund Board with clear governance, management structures, systems and procedures outlined in the Public Finance Management Act, 2012 and the attendant Regulations was again registered as a Company Limited by Guarantee under the Companies Act, 2015 indicating it was a private company receiving donations from well-wishers.

    A review of the inauguration Board meeting minutes (MIN 5/1/4/20 held on 1 April 2020) notes that the Members were briefed about the Fund Regulations issued by the National Treasury but unanimously resolved to adopt a private sector steered approach for purposes of instilling and assuring public confidence in the process. The Board decided to develop its own procedures and workplan in the performance of its mandate.

    The audit established that, the Fund opened a Bank Account with Absa Bank Kenya PLC, the account name being Kenya COVID-19 Fund, Account Number 2042554653 at Absa Towers Branch. Though the decision to open the Bank Account was approved by the Fund Board, there was no evidence of approval by the Cabinet Secretary to The National Treasury for opening the Bank Account. The Fund also operated an MPESA pay-bill number 999000.

    In her submissions, Nancy Gathungu, the auditor-general has recommended that the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations should conduct further investigations to establish acts of criminality in all irregularities identified by this special audit.

  • How Prison Cartels Plotted Sh1 billion loot

    How Prison Cartels Plotted Sh1 billion loot

    The State Department for Correctional Services is on the spot for irregularly paying out Sh975.7 million to faceless supplies who made no deliveries to the Kenya Prisons in a National Youth Service (NYS) looting style.

    Auditor General’s report has revealed that the huge amount was paid to fake suppliers in respect of pending bills on behalf of many prison stations across the country.

    “Verification of the payment vouchers at the stations revealed various irregularities as…suppliers who were paid at the headquarters were not known to the stations,” Auditor-General Nancy Gathungu said.

    The AG also stated that deeper investigations unearthed how other payments of up-to Sh555,652,356 were made on behalf of various prison stations in a scheme that was executed at the headquarters of the prison’s department.

    Auditor General Nancy Gathungu [p/courtesy]
    The Prisons Department plays host to 129 correctional institutions including the nine maximum-security prisons where the unscrupulous businessmen purport to supply food items.

    The Auditor General also found out that another Sh419,976,543 of the pending bills was overpaid compared to actual deliveries the ‘ghost suppliers’ made at the various prison stations.

    Ms Gathungu said that verification of the payment vouchers at the stations showed  that ‘suppliers’paid were not even contracted to supply anything to those stations.

    Further examinations also revealed that  payment vouchers were attached to unverifiable S13 accountable documents. She added that the stations did not order for or receive ration on the dates indicated in the questionable delivery notes.

    “7 prison stations book not reflecting orders or deliveries of the same and prison stations counter receipt book register not having series of those counter receipt vouchers (S13) used,” said MS Gathungu.

    The AG who is captured in the an audit of the department books of account for the year ended June 2020 said that an audit of the historical pending bills detailed data that co-related with Treasury’s Integrated Financial Management Information System (IFMIS) and total expenditure returns at prison stations showed that an over-payment of Sh419,976,543 was made for deliveries that actually amounted to Sh190,347,882.

    The report also found that IFMIS payments amounted to Sh610,324,425 and the matter is currently being investigated by sleuths from the Ethics and Anti-Corruption Commission.

    “It should, however, be noted that the above matters regarding irregular payments, doubtful procurement and over-payments are currently under investigation by the EACC.

    Zeinab Hussein, the Principal Secretary for Correctional Services Zainab Hussein. [p/courtesy]
    The prisons department is bursted just three months after Parliament directed Correctional Services PS Zeinab Hussein to settle all the verified pending bills to suppliers who  made deliveries worth Sh6.2 billion.

    The Public Accounts Committee which is chaired by Ugunja MP Opiyo Wandayi said that the National Treasury Pending Bills Closing Committee had finalized verifying the pending bills.

    “Within two months upon adoption of this report by the House, the accounting officer must ensure that all the pending bills amounting to Sh6,204,906,533 and duly verified are fully settled.

    “A report on the same to be submitted to the National Assembly at the lapse of the aforestated two months duration,” PAC chair said in a report adopted by the parliament.