Tag: Corruption in Isiolo

  • INVESTIGATIVE REPORT: The Grand Heist of Isiolo County – How Nairobi Cartels Looted Millions During Impeachment Crisis

    INVESTIGATIVE REPORT: The Grand Heist of Isiolo County – How Nairobi Cartels Looted Millions During Impeachment Crisis

    Multiple sources allege that funds stolen during this period were used to grease palms in the Senate, ensuring the impeachment motion failed before it even gained traction.

    “Money moved fast and upwards,” a source close to the county treasury confided.

    A budget that never was

    Adding to the scandal is the revelation that a budget, never debated or passed by the Isiolo County Assembly, was mysteriously published by the Government Printer — a process that ordinarily requires legal authorization.

     

    “This didn’t happen by accident,” a local civil society activist said. “It happened because someone with powerful connections wanted it that way. This is the anatomy of corruption.”

     

    The fraudulent budget became the basis for the questionable disbursements.

     

    National government involvement?

     

    The most damning allegation, however, is the claim that top officials within the National Government received kickbacks from the stolen county funds.

    According to sources privy to the transactions, a cut of every major payment was sent to individuals in Nairobi, insulating the perpetrators from legal consequences.

     

    “It’s a cartel network — the county is just an ATM for powerful people,” said a senior Isiolo administrator who asked to remain anonymous for fear of reprisal.

     

    While elites feast, Isiolo residents continue to suffer from underdevelopment, lack of clean water, inadequate health services, and soaring unemployment.

    Mothers walk for kilometers in search of food and medicine, while county resources are diverted to enrich people who have never set foot in Isiolo.

     

    What next for Isiolo?

     

    Civil society organizations are now demanding a forensic audit of all county expenditures from the past year, and for the Ethics and Anti-Corruption Commission (EACC) to initiate a full-scale investigation.

    But there is growing skepticism among locals that justice will ever be served.

     

    “Unless we confront the truth and name names, we will remain prisoners in our own county,” said Almamy Mohamed, a prominent Isiolo-based blogger and whistleblower who first exposed the scandal.

     

    Isiolo has become a crime scene in broad daylight, where public funds meant for development are hijacked by a sophisticated web of power, money, and impunity. Until the chains of silence and complicity are broken, the looting will continue and the people will continue to pay the price.

     

    If you have tips or documents related to this investigation, contact Kenya Insights via secure channels.

     

    At the height of the impeachment hearings, pro-Guyo allies dismissed critics as enemies of clan unity.

    But the very people chanting solidarity are now being forced to reckon with a stark truth: not a single firm that benefitted is registered in Isiolo.

    The real beneficiaries? Political operatives and faceless brokers operating out of Nairobi.

    Multiple sources allege that funds stolen during this period were used to grease palms in the Senate, ensuring the impeachment motion failed before it even gained traction.

    “Money moved fast and upwards,” a source close to the county treasury confided.

    A budget that never was

    Adding to the scandal is the revelation that a budget, never debated or passed by the Isiolo County Assembly, was mysteriously published by the Government Printer — a process that ordinarily requires legal authorization.

     

    “This didn’t happen by accident,” a local civil society activist said. “It happened because someone with powerful connections wanted it that way. This is the anatomy of corruption.”

     

    The fraudulent budget became the basis for the questionable disbursements.

     

    National government involvement?

     

    The most damning allegation, however, is the claim that top officials within the National Government received kickbacks from the stolen county funds.

    According to sources privy to the transactions, a cut of every major payment was sent to individuals in Nairobi, insulating the perpetrators from legal consequences.

     

    “It’s a cartel network — the county is just an ATM for powerful people,” said a senior Isiolo administrator who asked to remain anonymous for fear of reprisal.

     

    While elites feast, Isiolo residents continue to suffer from underdevelopment, lack of clean water, inadequate health services, and soaring unemployment.

    Mothers walk for kilometers in search of food and medicine, while county resources are diverted to enrich people who have never set foot in Isiolo.

     

    What next for Isiolo?

     

    Civil society organizations are now demanding a forensic audit of all county expenditures from the past year, and for the Ethics and Anti-Corruption Commission (EACC) to initiate a full-scale investigation.

    But there is growing skepticism among locals that justice will ever be served.

     

    “Unless we confront the truth and name names, we will remain prisoners in our own county,” said Almamy Mohamed, a prominent Isiolo-based blogger and whistleblower who first exposed the scandal.

     

    Isiolo has become a crime scene in broad daylight, where public funds meant for development are hijacked by a sophisticated web of power, money, and impunity. Until the chains of silence and complicity are broken, the looting will continue and the people will continue to pay the price.

     

    If you have tips or documents related to this investigation, contact Kenya Insights via secure channels.

    Isiolo, Kenya – As political drama unfolded around the attempted impeachment of Governor Abdi Ibrahim Guyo earlier this year, behind the scenes, a more insidious operation was in full motion — a calculated and well-coordinated looting of Isiolo County’s public funds.

     

    Investigation by Kenya Insights, informed by whistleblower testimony and county financial records, reveals that over a dozen shadowy companies, none of them owned by Isiolo residents, received suspicious payments from county coffers during the tense weeks surrounding the impeachment process.

     

    The transactions, masked as legitimate payments for services and supplies, raise serious questions about collusion between high-ranking county officials, Nairobi-based contractors, and powerbrokers within the national government.

     

    The companies and their directors

     

    An analysis of payment records identifies 12 firms at the center of the financial scandal:

     

    Company Name

    Directors

    Amount Paid (KES)

    Karume Feeds Co. Ltd

    Said Mohamed Isaack, Hassan Ibrahim Khalif

    17,456,000.00

    Asmara Ventures Ltd

    Abdikadir Mohamed, Said Mohamed Isaack

    17,791,500.00

    Eckland Limited

    Yahya Ibrahim Khalif

    18,930,500.00

    Rafeeq Traders Ltd

    Leila Hassan Duale, Ann Kagwiria

    19,667,500.00

    Holwanag General Contractors Ltd

    Adan Hussein Ali, Fatima Ismail Haji

    5,320,000.00

    Furaha Conquest Ltd

    Ahmed Duale Osman

    5,600,000.00

    Somreed Limited

    Anthony Masha Kazungu

    18,503,500.00

    Rochester Limited

    Fatima Omar Abdille, Abdisalam Ibrahim Khalif

    18,542,000.00

    Habasha Feeds Ltd

    Hashim Mohamed Abdi

    19,510,000.00

    Abeba Company Ltd

    Hashim Mohamed Abdi, Fatima Abdikadir Hajo

    19,581,500.00

    Remmy Suppliers & Services Ltd

    Sally Jepchumba Lawatt

    17,796,418.90

     

    Total Paid to the 11 Companies Listed:

    KES 178,199,918.90

    These figures confirm the scale of public resource misuse during the impeachment period in Isiolo — nearly KES 180 million was transferred to firms with no visible ties to the county’s citizens.

     

    The Political Smoke Screen

     

    At the height of the impeachment hearings, pro-Guyo allies dismissed critics as enemies of clan unity.

    But the very people chanting solidarity are now being forced to reckon with a stark truth: not a single firm that benefitted is registered in Isiolo.

    The real beneficiaries? Political operatives and faceless brokers operating out of Nairobi.

    Multiple sources allege that funds stolen during this period were used to grease palms in the Senate, ensuring the impeachment motion failed before it even gained traction.

    “Money moved fast and upwards,” a source close to the county treasury confided.

    A budget that never was

    Adding to the scandal is the revelation that a budget, never debated or passed by the Isiolo County Assembly, was mysteriously published by the Government Printer — a process that ordinarily requires legal authorization.

     

    “This didn’t happen by accident,” a local civil society activist said. “It happened because someone with powerful connections wanted it that way. This is the anatomy of corruption.”

     

    The fraudulent budget became the basis for the questionable disbursements.

     

    National government involvement?

     

    The most damning allegation, however, is the claim that top officials within the National Government received kickbacks from the stolen county funds.

    According to sources privy to the transactions, a cut of every major payment was sent to individuals in Nairobi, insulating the perpetrators from legal consequences.

     

    “It’s a cartel network — the county is just an ATM for powerful people,” said a senior Isiolo administrator who asked to remain anonymous for fear of reprisal.

     

    While elites feast, Isiolo residents continue to suffer from underdevelopment, lack of clean water, inadequate health services, and soaring unemployment.

    Mothers walk for kilometers in search of food and medicine, while county resources are diverted to enrich people who have never set foot in Isiolo.

     

    What next for Isiolo?

     

    Civil society organizations are now demanding a forensic audit of all county expenditures from the past year, and for the Ethics and Anti-Corruption Commission (EACC) to initiate a full-scale investigation.

    But there is growing skepticism among locals that justice will ever be served.

     

    “Unless we confront the truth and name names, we will remain prisoners in our own county,” said Almamy Mohamed, a prominent Isiolo-based blogger and whistleblower who first exposed the scandal.

     

    Isiolo has become a crime scene in broad daylight, where public funds meant for development are hijacked by a sophisticated web of power, money, and impunity. Until the chains of silence and complicity are broken, the looting will continue and the people will continue to pay the price.

     

    If you have tips or documents related to this investigation, contact Kenya Insights via secure channels.

  • Unlawful Employment: Isiolo Governor Guyo Exposed For Hiring 36 Advisors, Highest in Kenya

    Unlawful Employment: Isiolo Governor Guyo Exposed For Hiring 36 Advisors, Highest in Kenya

    Isiolo Governor Abdi Guyo is on the spot for creating unlawful employment positions after hiring 36 advisors, the highest in the country.

    The appointments are against the Salaries and Remuneration Commission (SRC) recommendation of four.

    According to a report tabled before the Senate County Public Accounts Committee, the Auditor General established that 47 per cent of the county budget is spent on wages, denying the residents of Isiolo services and development.

    Isiolo Governor Abdi Guyo appearing before the parliamentary committee.
    Isiolo Governor Abdi Guyo appearing before the parliamentary committee.

    Governor Guyo was also questioned over the hiring of 31 chief officers, exceeding the approved number of 18.

    It was further revealed that each County Executive Committee member had five chief officers, each earning a monthly salary of Ksh255,000.

    The Auditor General had raised 35 issues regarding the Financial Statements of Isiolo County Government for the Financial Year 2023/2024. The county Government has since responded to 18 of the 17 charges.

    The session was also temporarily halted after the county boss who denied all the allegations was locked in a war of words with the county senator, Fatuma Dullo.

    The committee, chaired by Homa Bay Senator Moses Kajwang, has recommended that the Ethics and Anti-Corruption Commission (EACC) investigate a contract for the development of the Isiolo County spatial plan amounting to Ksh98.5 million, shunning the lowest bidder who had quoted Ksh62.1 million.

    The lowest bidder was disqualified because the quotation was low and they would potentially fail to deliver the contract.

    The county boss was fined Ksh500,000 for failing to appear before various senate committees on several occasions.

  • Corruption and Poor Governance in Isiolo County under Governor Abdi Guyo

    Corruption and Poor Governance in Isiolo County under Governor Abdi Guyo

    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.

    Isiolo County

    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.