Kenya Insights

Tag: Auditor General Nancy Gatungu

  • Damning Revelations Reveals How PS Patrick Mariru Irregularly Awarded Sh42 Billion Bomas Kenya Tender

    Damning Revelations Reveals How PS Patrick Mariru Irregularly Awarded Sh42 Billion Bomas Kenya Tender

    A BOMBSHELL audit report tabled in Parliament has unmasked how the Ministry of Defence bulldozed through procurement regulations to award a Sh41.9 billion renovation contract for the Bomas of Kenya cultural facility, setting the stage for one of the most explosive accountability showdowns in recent government history.

    Auditor-General Nancy Gathungu’s scathing findings, presented through Parliament in the Ministry of Defence’s latest audited accounts, reveal that Principal Secretary Patrick Mariru approved procurement proceedings that had already begun without budgetary authority, in brazen contravention of some of Kenya’s most fundamental public finance laws.

    At the heart of the scandal is a damning chronological fact: PS Mariru signed off on the request for direct procurement authorisation on February 17, 2025, four full days after tender invitation documents and a site visit certificate had already been issued on February 13 and 14, 2025. In procurement law, this is not a technicality. It is a crime.

    Section 69(2) of the Public Procurement and Asset Disposal Act of 2015 could not be clearer: no procurement approval shall operate retrospectively to any date earlier than the date on which it is made, except in cases of urgent need. No emergency was declared. No exemption was sought. The ministry simply acted as though the law did not apply.

    The audit report states bluntly that the Ministry of Defence was in breach of the law and warns that the government is likely to incur penalties and charges where there is a delay in making payments. That warning carries enormous weight given that the country is already staring down a Sh41.9 billion bill for a project whose financing arrangements remain mired in controversy.

    The renovation aims to transform Kenya’s iconic cultural facility into the Bomas International Convention Centre, or BICC, a grand modernised venue with an enhanced seating capacity of up to 11,000 people. But the ambition of the project does not excuse the manner in which it was procured, and auditors are making no bones about it.

    No Budget, No Authorisation: A Double Scandal

    The procurement irregularity is only one layer of what Gathungu has uncovered. Perhaps even more alarming is the revelation that the renovations were not included in the approved budget of the State Department for Culture, Arts and Heritage, the entity originally mandated to oversee the project, for the 2024/25 financial year. A review of the budget for the State Department revealed that it carried no development budget allocation toward the design, construction and equipping of the BICC.

    Under Sections 68 and 149 of the Public Finance Management Act, all accounting officers of public entities are required to ensure that every shilling of expenditure falls within the approved budget for that financial year. Any procurement without an authorised budget is expressly classified as financial misconduct by a public officer. Critically, the law makes these officials personally liable for any losses the government incurs as a result.

    Put simply, PS Mariru could be left holding the bill. Not the ministry. Not the taxpayer. Him personally.

    The Turkish Firm Ghost That Won’t Go Away

    This is not the first time the Bomas renovation has landed the Ministry of Defence in legal quicksand.

    In November 2023, the ministry awarded the original renovation tender to Turkish construction firm Summa Turizm Yatirimciligi Anonim Sirketi at Sh31.6 billion. But 329 days later, without ever signing a formal contract, the ministry terminated the award, citing lack of funds and a change in the scope of works.

    The Public Procurement Administrative Review Board rejected that move outright, ruling in December 2024 that a public tender can only be cancelled before its award, not after. The ministry then turned to the courts, filing for judicial review at the High Court in January 2025, only to have its case thrown out on procedural grounds as time-barred. An appeal to the Court of Appeal in April 2025 also failed, with a three-judge bench upholding the Turkish firm’s right to the tender.

    Having lost in every forum it turned to, the ministry appears to have simply gone ahead and opened a fresh procurement process for what it now calls Phase II of the project, the very process whose approval PS Mariru backdated and which the Auditor-General has now flagged as illegal.

    Tourism Fund: Kenya’s Secret Financier Revealed

    For months, the source of funding for the Bomas renovation was treated as a state secret so closely guarded that even the Cabinet Secretary for Tourism could not answer parliamentary questions about it. MPs were told it was a security project run by the Kenya Defence Forces and that the details were classified.

    It took the outgoing Tourism Fund Board of Trustees chairperson, Samson Some, whose term ended on February 16, 2026, to finally lift the veil in an interview with Nation Media.

    Mr Some confirmed that the Tourism Fund was financing Phase II of the renovation through a Public-Private Partnership model, with a percentage of the fund’s annual levy collections committed as repayment to private investors in the project.

    But the Auditor-General’s report has now added a new knot to this already tangled financing story. The contract agreement between the parties provided for a repayment plan in nine instalments payable within 24 months. The National Treasury, however, approved a deferred payment plan stretched over 10 years. The two instruments are fundamentally contradictory, and auditors have flagged the inconsistency as a significant red flag.

    A Trail of Legal Jeopardy for Mariru

    For PS Mariru, the Bomas audit findings arrive at the worst possible moment. The Defence principal secretary is already fighting multiple legal battles on other fronts. The High Court has summoned him personally to explain why he should not be held in contempt over his ministry’s failure to pay former soldiers amounts totalling more than Sh280 million as compensation for torture following the 1982 coup attempt. In one of those cases alone, the sum owed with accrued interest stands at Sh134 million.

    In a February 2025 affidavit, Mariru told the court he could not be held accountable for budgetary allocations determined by Parliament, and that the ministry carries a debt pile exceeding Sh4 billion from court decrees it is struggling to settle. That argument now sits in uncomfortable tension with the Auditor-General’s finding that his ministry pressed ahead with a Sh41.9 billion procurement without the budget authority Parliament is supposed to provide.

    The Parliamentary Liaison Committee, processing the 2025 Budget Policy Statement, has separately called for a forensic audit of Sh500 million that the Bomas of Kenya management spent on feasibility studies for the renovation project, adding yet another layer of financial scrutiny to a project drowning in accountability questions.

    Gachagua’s Prophecy and the Secrecy That Fuelled It

    It was former Deputy President Rigathi Gachagua who, before his dramatic impeachment, caused a national uproar when he sensationally claimed that the Bomas of Kenya cultural facility had been sold off by the government to a foreign entity. The government denied the claim. But the wall of secrecy that surrounded every aspect of the project, the undisclosed financiers, the classified KDF involvement, the unexplained transfer of procurement responsibility from the Culture Ministry to the Defence Ministry, gifted that narrative room to breathe.

    Now that the Auditor-General has pierced that secrecy, what has been laid bare is arguably more troubling than any conspiracy: a systematic disregard for the very laws designed to safeguard public money, carried out at the highest levels of a government ministry.

    The Public Investments Committee on Social Services, Administration and Agriculture had previously directed the Auditor-General’s office to monitor the Bomas renovation works and include findings in the next financial year’s report. That monitoring has now produced results that Kenya’s Parliament and the public will find impossible to ignore.

  • Sakaja on The Spot As Wage Bill Shoots By Triple To Sh17.3 Billion in 3 Years

    Sakaja on The Spot As Wage Bill Shoots By Triple To Sh17.3 Billion in 3 Years

    Nairobi Governor Johnson Sakaja faces mounting pressure over what auditors describe as an unprecedented hiring spree that has seen the county’s wage bill balloon from Sh6 billion to a staggering Sh17.3 billion in just three years.

    The dramatic surge represents a 188.6 percent increase in employee costs, with the county’s workforce nearly tripling from 5,777 workers in June 2022 to 16,321 by June 2024, according to a damning special audit report by Auditor-General Nancy Gathungu.

    The explosive growth in staff numbers has pushed Nairobi County into dangerous financial territory, with employee compensation now consuming 55.9 percent of total revenue compared to 36.7 percent the previous year.

    This far exceeds the legal limit of 35 percent set by Public Finance Management regulations, designed to ensure development projects aren’t starved of funding.

    The hiring binge began almost immediately after Sakaja took office in September 2022, with staff numbers jumping to 13,355 by June 2023 in his first full financial year.

    Employee costs during that period alone surged by 86.4 percent to Sh11.18 billion as the governor delivered on campaign promises to convert casual workers to permanent positions and expand the workforce.

    However, the aggressive recruitment drive has come at a steep price.

    The bloated wage bill now exceeds the county’s own-source revenue collections, which have averaged just Sh10.8 billion annually over the past two years.

    This has left Nairobi heavily dependent on Treasury disbursements to meet basic operational costs, including paying salaries on time.

    The financial strain became evident last month when county employees faced delayed August salary payments due to late Treasury disbursements.

    Head of Public Service Godfrey Akumali was forced to issue a circular explaining the delays, highlighting the precarious position the county finds itself in.

    More troubling are emerging concerns about ghost workers bleeding the county’s already stretched resources.

    The audit revealed that 27 employees who collectively earned Sh47.552 million between June 2022 and last year failed to appear for mandatory physical verification exercises, raising red flags about their existence.

    Additional irregularities include mismatched birth dates between the payroll system and official documents, potentially allowing some workers to exceed retirement age or be prematurely forced out.

    Questions also persist about 1,700 employees allegedly hired illegally by the defunct Nairobi Metropolitan Services, which was prohibited from recruiting new staff.

    The wage bill crisis has severely hampered the county’s ability to deliver critical services to residents, with development projects taking a backseat to salary obligations.

    Healthcare, water supply, and road infrastructure have suffered as available funds are consumed by personnel costs.

    County governments across Kenya have struggled with similar challenges since devolution began, but Nairobi’s situation stands out for its sheer scale and rapid deterioration.

    The capital city, which should be generating substantial own-source revenue, now faces the paradox of having more money going to employee salaries than it collects from its own operations.

    As calls for accountability grow louder, Governor Sakaja must navigate the delicate balance between honoring employment commitments made during his campaign and restoring the county’s financial health.

    The audit findings present a stark warning that without immediate intervention, Nairobi County risks financial collapse under the weight of its own payroll.

  • REREC Paid Sh1.6 Billion to 3 Consultancy Firms For Doing Nothing, Audit Reveals

    REREC Paid Sh1.6 Billion to 3 Consultancy Firms For Doing Nothing, Audit Reveals

    The Rural Electrification and Renewable Energy Corporation (REREC) is facing serious questions after an audit exposed suspicious payments totaling Sh1.6 billion to three unnamed consulting firms for alleged land survey services that cannot be verified.

    Auditor-General Nancy Gathungu revealed that the state corporation made these payments during the financial year ending June 2024, claiming the services were provided in previous years. However, REREC failed to produce any evidence of the projects these companies supposedly surveyed.

    “The review of the balance revealed that it was for previous years for unspecified projects undertaken by the corporation,” Gathungu stated in her audit report. “During the audit, no evidence was made available of budgeting for the services, their inclusion in the annual procurement plan, and competitive procurement.”

    The audit findings indicate REREC violated procurement laws by paying for services that were never budgeted for and cannot be proven to have been delivered. This contravenes Section 45(3)(a) of the Public Procurement and Asset Disposal Act, 2015, which requires all procurement to be within approved budgets and planned through annual procurement plans.

    With properties valued at Sh115.8 billion and annual project spending of Sh11.5 billion, REREC’s financial management is now under intense scrutiny. The Auditor-General noted that “the accuracy, completeness, and validity of the land survey expenditure amounting to Sh1,600,000,000 could not be confirmed.”

    Adding to the corporation’s woes, the audit also flagged excessive spending on airtime, with REREC exceeding its budget by Sh5.66 million out of a total Sh26.7 million spent on mobile phone services for officers.

    The mysterious Sh1.6 billion payment is now subject to investigation, raising serious questions about financial controls and oversight at one of Kenya’s key infrastructure development agencies. The case highlights the ongoing challenges in public sector financial management and the need for stronger accountability mechanisms in state corporations.

    Parliament has since directed REREC to furnish the Auditor-General with all relevant documents within five days to facilitate the ongoing investigation.​​​​​​​​​​​​​​​​

  • Auditor Flags Sh6.17 Billion Spent on Dead Stadiums

    Auditor Flags Sh6.17 Billion Spent on Dead Stadiums

    Gathungu report exposes massive waste as six major sports facilities remain incomplete years after construction began

    Kenya’s dream of world-class sporting infrastructure has turned into a nightmare of stalled projects and vanished contractors, with the latest audit report revealing that Sh6.17 billion has been sunk into six stadiums that remain incomplete—some abandoned for over seven years.

    Auditor General Nancy Gathungu’s damning report paints a picture of systematic failures, disappeared contractors, and projects that have become monuments to poor planning and execution. The six facilities—Kamariny, Kipchoge Keino, Karatu, Wote, Ruring’u, and Kirubia stadiums—represent not just financial loss but missed opportunities for Kenya’s sporting development.

    Perhaps most shocking is the case of Kamariny Stadium in Elgeyo Marakwet, where a contractor simply vanished after pocketing Sh87.1 million—30 percent of the Sh287.8 million contract. The 15,000-seater facility, which was supposed to include eight-lane tracks and field events facilities, has been a ghost site since 2017.

    The Kipchoge Keino Stadium saga reads like a masterclass in project mismanagement. Despite contract revisions that pushed costs from Sh304.2 million to Sh369.69 million, the first phase remains incomplete as termination processes began to accommodate AFCON requirements. The second phase, costing Sh325.82 million, saw the contractor abandon the site after receiving 80 percent of payments due to delayed compensation.

    At Karatu Stadium, shoddy workmanship tells its own story. Despite paying the contractor Sh217.1 million—83.6 percent of the contract value—audit inspections revealed honeycombed concrete columns, improper mixing ratios that have weakened structural beams, and a perimeter wall that has caved in. The 1,500-seater pavilion remains unfinished, and the promised borehole was never dug.

    The Wote Stadium project exemplifies the chaos that can ensue when proper planning is abandoned. Makueni County’s decision to change the construction site mid-project created a domino effect of additional costs and complications. Without conducting a feasibility study for the new location, the contractor faced unexpected challenges in land compaction and leveling. Adding insult to injury, site materials were stolen, further hampering progress despite Sh196.48 million in payments.

    Ruring’u Stadium in Nyeri presents perhaps the most brazen case of project abandonment. Seven years after construction began in January 2017, the contractor has disappeared from the site entirely. The original completion date of August 5, 2017, has become a cruel joke as the project remains incomplete despite contract sum revisions that inflated costs by 24.4 percent to Sh358.2 million. The contractor has already been paid Sh302 million.

    Even Kirubia Stadium, officially listed as “complete” with Sh274.2 million paid out, fails to meet standards. The March 2024 audit revealed multiple anomalies that management has failed to address, and questions remain about land ownership documentation.

    These failures extend beyond mere financial loss. They represent a betrayal of Kenya’s sporting ambitions and the communities that were promised world-class facilities. Young athletes who could have been training in these venues have been denied opportunities, while the international sporting events these stadiums were meant to host have gone elsewhere.

    The audit findings also raise serious questions about oversight mechanisms within Sports Kenya and county governments. How do contractors disappear with millions in public funds? Why are projects approved without proper feasibility studies? What accountability measures exist when public officials fail to deliver on their promises?

    As Kenya continues to position itself as a sporting powerhouse, these stalled projects serve as a sobering reminder that infrastructure development requires more than just financial allocation—it demands rigorous planning, consistent oversight, and unwavering commitment to completion.

    The Sh6.17 billion spent on these dead stadiums could have built functional sporting facilities across the country. Instead, it has created a landscape of abandoned dreams and concrete shells that stand as monuments to institutional failure.

    Taxpayers deserve answers. More importantly, they deserve stadiums that actually exist.

  • EduAfya Scandal: Sh2.2 Billion Lost to Ghost Students and Inflated Premiums, Audit Exposes

    EduAfya Scandal: Sh2.2 Billion Lost to Ghost Students and Inflated Premiums, Audit Exposes

    NAIROBI, July 17, 2025 — A staggering Sh2.2 billion meant to secure healthcare for Kenya’s secondary school students under the EduAfya scheme was paid out to ghost students and lost through inflated premiums, a damning audit by Auditor General Nancy Gathungu has revealed.

    The report, tabled in Parliament on Tuesday, exposes a trail of financial mismanagement, systemic oversight failures, and questionable payments to the now-defunct National Health Insurance Fund (NHIF), raising serious concerns about accountability in one of Kenya’s flagship education and health initiatives.

    The EduAfya scheme, launched in May 2018, was designed to provide comprehensive medical cover for over 3.4 million public secondary school students.

    Funded through the Ministry of Education’s Free Day Secondary Education program, it promised inpatient and outpatient care, accidental death benefits of Sh500,000, and last expense cover of Sh100,000 per student.

    The scheme was heralded as a transformative step toward safeguarding the health of Kenya’s youth.

    But Gathungu’s special audit, covering financial years 2020-21 to 2023-24, paints a grim picture of waste and potential fraud.

    The audit uncovered a Sh2.293 billion discrepancy between premiums payable and actual remittances to NHIF. While the Ministry of Education was expected to pay Sh14.175 billion for the scheme, it remitted Sh16.468 billion—an excess that remains “unreconciled and unexplained,” according to the report.

    This overpayment points to possible inflation of premiums or payments for non-existent beneficiaries, Gathungu notes.

    Of the 9,312 secondary schools whose capitation was retained and remitted to EduAfya, only 8,846 had students accessing medical services.

    This leaves 465 schools, with a total capitation of Sh273 million, showing no evidence of beneficiaries utilizing the scheme.

    In some cases, the report found records of students from non-existent schools supposedly accessing services, raising red flags about the integrity of the National Education Management Information System (Nemis) used to track beneficiaries.

    The financial toll is staggering.

    The Ministry of Education paid Sh16.4 billion to NHIF over four years, but only Sh5.3 billion was utilized for actual healthcare services.

    This means NHIF pocketed Sh11.1 billion for providing cover that was barely used.

    “The value for money on the disbursed amount of Sh16,468,040,851 to NHIF for health services rendered could not be confirmed,” Gathungu stated in the report.

    The audit exposed a breach of the scheme’s guidelines, which restricted benefits to secondary school students.

    Shockingly, 4,100 primary schools and Junior Secondary Schools (JSS) not covered under EduAfya accessed medical services worth Sh40.163 million through 15,468 visits by ineligible learners.

    This breach points to a glaring lack of oversight by both the Ministry of Education and NHIF, which entered into the contract on March 1, 2018.

    Even after the EduAfya scheme officially ended on December 31, 2023, the audit found 65 facility visits recorded in Nemis EduAfya up to February 28, 2024, with medical services valued at Sh35,550.

    These post-scheme activities raise questions about how and why services continued under a defunct program.

    The findings point to a cascade of failures across multiple levels of oversight.

    The Ministry of Education, tasked with ensuring proper use of capitation funds, failed to reconcile payments or verify beneficiaries. NHIF appears to have collected billions without delivering commensurate services.

    The inclusion of non-existent schools and ineligible beneficiaries in Nemis suggests deeper issues with data integrity and system controls.

    The EduAfya scheme was meant to protect Kenya’s students many from vulnerable backgrounds by ensuring access to critical healthcare.

    Instead, billions of shillings meant for their well-being have vanished into a black hole of mismanagement, leaving taxpayers to bear the cost of a broken system.

    The report’s findings demand urgent action. Parliament must hold the Ministries of Education and Health accountable for their roles in this scandal.

    Investigations should zero in on how ghost students and schools were registered in Nemis, who authorized the excess payments, and why NHIF failed to flag the discrepancies.

    The public deserves answers, and those responsible must face consequences.

    For now, the EduAfya scandal stands as a stark reminder of the fragility of public trust in government programs.

    As Gathungu’s audit lays bare, the promise of universal healthcare for Kenya’s students has been undermined by greed, negligence, or both.

    The question remains: will this be another report shelved, or will it spark the reforms needed to protect Kenya’s future generations?

  • Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    Dark Past Haunts Nairobi Water Manager As He Fights Transfer

    The dark past of Benedict Kiema Kavua the Procurement Manager of Nairobi City Water and Sewerage Company has caught up with him. He was recently transferred to a different department but rushed to the employment court to reverse the decision making many wonder as to why he would put such a spirited fight against the move yet his new station is not that far.

    Word is Kiema is buying time to to coverup suspected corrupt dealings that he allegedly got into while in office. City Hall insiders also claim that the besieged manager has been in the radar of investigative agencies including Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC).

    In a quick rejoinder, Nahashon Muguna, the city water company’s managing director moved to court to stop Kiema’s application saying he had obtained the order blocking his transfer last month by concealing material facts from the court.

    Mr Muguna said due to the nature of the company’s mandate and as a matter of policy, it is expected that employees may be transferred or reassigned roles in order to achieve efficiency and optimum performance.

    “It is therefore clear that he (Mr Kavua) did not come to court with clean hands and in a bid to obtain the orders he sought, deliberately failed to disclose this aspect which is material to the matters in question,” Mr Muguna said in a statement filed in court.

    Speaking to Kenya Insights, an insider says Kiema’s fears are based on his past questionable deals and that an audit of the accounting books and records would expose him and also the irregular procurement practices he oversaw as supply chain manager.

    “Kiema is literally in trouble since a report on all requests for quotations is required on RFQ register (where bidders sign as they pick), appointments by the MD for opening and evaluation committee, opening minutes, evaluation minutes’ copies of LPOs and professional opinions.” said the source.

    Auditor Report

    In the auditor general’s report released last year, Nairobi Water lost over Sh10 billion in the financial year ended June 2022 due to faulty water meters, unreconciled financial statements and allowances paid to its staff.

    Auditor-General Nancy Gathungu said the utility firm, which supplies the commodity to city residents, sold a total of 96,404,533 cubic meters of water during the year under review.

    This translated to Sh5.63 billion of income using the rate of Sh58.5 per cubic meter. However, the water firm declared an operating income of Sh4.79 billion leading to an undeclared income of Sh848 million.

    Ms Gathungu also observed in the report that the water firm failed to declare an extra Sh200 million that was obtained as levy water and sewerage services levy to the customers.

    During the year under review, the water firm produced 192,787, 851 cubic meters of treated water but its records understated the volume of water produced by indicating it was 178,526, 912 cubic meters.

    This, the auditor general observed, led to a loss of Sh834 million as projected revenue. The report also indicates that the water firm lost up to 50 percent of its projected water sales, which is way above the 25 percent of the non-revenue water threshold that is allowed by the Water Services Regulatory Board.

    Although the official company records indicate the firm produced 178,526, 912 cubic meters of water only 96,404, 533 cubic meters were billed meaning that it lost a Sh9.8 billion according to the auditor general.

    The report notes that the volumes lost are inclusive of the water and sewer charges at the rate of Sh102.375 per cubic meter.

    Desperation

    Word is the embattled manager is disparately asking for money from his friendly suppliers to ‘fight cartels hell bent to oust me from City Hall’ the money he says is needed to ‘handle’ the big case he’s having in court, how he plans to handle it remains unknown.

    In his objection, Mr Muguna told the court company has the power to reorganize the company to improve productivity.

    He said Mr Kavua had been in the said management position since 2012 and therefore had 12 years of management experience.

    “It is therefore appropriate that his experience in the company should indeed be utilised in other departments and this is in line with best practices where movement of people has yielded better results and eradicated complacency,” he said.

    The Managing Director said that there was no arbitrariness or malice in the changes made. Furthermore, there is no major change of location that would cause prejudice if Mr Kavua reported to his new position immediately.

    Mr Muguna said in the contract signed in September 2010, it was clear to Mr Kavua that he would be required to serve the company in any part of the county.

    The managing director said Mr Kavua did not protest two years ago when he was transferred from his previous post and place of work to the head office to serve as supply chain manager.

    He said Mr Kavua did not protest but reported to the new post and reported on the same day he signed the letter.

    “So I am very surprised to see in his application before this court that he is complaining that he was not given adequate notice when in this case he is not even moving from the head office yet when he moved from the Western Region to the head office he did not protest and in fact reported on the same day the letter was given to him,” he said.

    Mr Muguna revealed that the company currently has 33 management positions, of which 28 are substantively filled and another five are in acting capacity. “This shows that it is important to make transfers when deemed necessary,” he said.

  • Idle Millions in Dormant State Funds Flagged by Gathungu

    Idle Millions in Dormant State Funds Flagged by Gathungu

    An audit has revealed that several government-funded accounts, including the one for Internally Displaced Persons (IDPs), hold hundreds of millions of shillings lying idle.

    Auditor General Nancy Gathungu has criticized the National Treasury, along with the National Assembly, for the delayed closure of these funds.

    Idle Millions in Dormant State Funds

    The Idle Millions in Dormant State Funds

    In addition to the IDP fund, other dormant accounts include the Rural Enterprise Fund, Treasury Main Clearance Fund, Provident Fund, Kenya Local Loans Support Fund, and the fund for widows and orphans of Asians who served the government during the independence era.

    Although the National Treasury had established a task force to wind up these dormant funds, which collectively amount to Sh600 million, no progress has been made.

    Regarding the Rural Enterprise Fund, a winding-up order was issued by the Minister for Finance in September 2012, and revocation orders were approved by President Uhuru Kenyatta’s Cabinet. However, no evidence was provided to confirm the passage of the Repeal Act by the National Assembly.

    The IDP cash fund operated multiple bank accounts, but a review conducted by Gathungu revealed a balance of Sh272.6 million as of June 30, 2022, despite the completion of grant disbursements under the cash payment program. The Treasury has been criticized for failing to invest or place the money in an interest-earning account for the fund, which has had no movement for two and a half years.

    The government clearing agency fund shows a balance of Sh300 million in receipts and Sh52 million in outstanding payments. However, these amounts lack support from ledger, trial balance, or verifiable documents.

    The Kenya Local Loans Support Fund has a bank balance of Sh9 million and an investment balance of Sh71 million, which represents interest from the fund. This dormant fund has not been active since June 2006 and was scheduled for closure by the National Treasury task force on dormant funds.

    The provident fund is facing an outstanding debt of approximately Sh4 million owed by a defunct state corporation. Furthermore, there are no surviving beneficiaries for this fund.

    The Asiatic Widows and Orphans fund has been dormant since June 2002, following the death of the sole surviving beneficiary. Despite being due for closure, the necessary law has yet to be enacted due to delays by MPs.

    Gathungu emphasizes the lack of evidence confirming the passage of the Repeal Act by the National Assembly, resulting in prolonged delays in winding up these funds. These delays have led to wastefulness in the use of public resources and the unnecessary burden of maintaining records for dormant funds.