Kenya Insights

Tag: Edward Ouko

  • Former Auditor General Edward Ouko Lands Senior State Job

    Former Auditor General Edward Ouko Lands Senior State Job

    NAIROBI, Kenya — Former Auditor General Edward Ouko has made a comeback to public service after being appointed as the Chairperson of the Anti-Money Laundering Advisory Board.

    In a Gazette Notice dated September 19, 2025, Treasury Cabinet Secretary John Mbadi named Ouko to the post for a three-year term.

    The appointment was made under Section 49(1)(a) of the Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A).

    “The Cabinet Secretary for the National Treasury and Economic Planning appoints Edward Ouko (FCPA) to be the Non-Executive Chairperson of the Anti-Money Laundering Advisory Board, for a period of three years, with effect from 19th September 2025,” the notice read.

    In addition to chairing the board, Ouko will also serve as a member for a similar term, under Section 49(1)(h) of the Act.

    The board plays a critical role in guiding Kenya’s war on illicit financial flows and terrorism financing, working with state agencies and financial institutions to strengthen compliance, oversight, and governance within the sector.

    Ouko, a Fellow of the Institute of Certified Public Accountants of Kenya, is best remembered for his tenure as Auditor General, where he pushed for greater accountability and transparency in public finance management.

    His tenure was marked by high-profile audits that exposed gaps in government spending and procurement systems.

    The appointment comes at a time when Kenya faces mounting pressure from global financial watchdogs to tighten anti-money laundering measures, especially in light of increased cross-border scrutiny of financial transactions.

    In related appointments, CS Mbadi also extended the mandate of the Pending Bills Verification Committee until December 31, 2025.

    The committee is tasked with scrutinising and authenticating government pending bills, a matter that has generated controversy over claims of inflated and fraudulent claims.

    Meanwhile, in the agriculture sector, Agriculture CS Mutahi Kagwe appointed three new members to the Tea Board of Kenya.

    Those appointed include Jackline Cherono, Joseph Karioki Ngige, and William Otemba Oyosi, all of whom will serve for a three-year term beginning September 19, 2025.

    Separately, the Central Bank of Kenya (CBK) issued its 56th Monetary Policy Statement, dated June 2025, in line with Section 4B of the CBK Act.

    The CBK also announced the revocation of Bonto Kenya Money Transfer Limited’s licence with effect from September 11, 2025, citing breaches of the Money Remittance Regulations, 2013.

    The wave of appointments and regulatory moves underscores the government’s efforts to strengthen governance across financial and agricultural sectors, enhance oversight, and safeguard economic stability.

  • Fraud Crackdown: Ouko Team Finds Sh270B Govt Bill Invalid

    Fraud Crackdown: Ouko Team Finds Sh270B Govt Bill Invalid

    Treasury Rejects Nearly Half of Sh665B in Pending Government Bills

    A special audit committee led by former Auditor General Edward Ouko has cleared only Sh230 billion as legitimate, dealing a crushing blow to many businesses that have waited years to be paid.

    Thousands of suppliers across the country are facing a financial nightmare after the National Treasury declared nearly half of Sh665 billion in pending government bills ineligible for payment.

    A special audit committee led by former Auditor General Edward Ouko has cleared only Sh230 billion as legitimate, dealing a crushing blow to many businesses that have waited years to be paid.

    The verification process has left Sh270 billion worth of claims hanging, many of which are now labelled irregular or lacking proper documentation.

    Treasury Principal Secretary Chris Kiptoo told the National Assembly Finance Committee that these bills would not be honoured unless claimants can prove their legitimacy.

    “If the audit team declares a bill unpayable, the burden of proof shifts to the claimant,” Kiptoo said, underlining the Treasury’s strict position aimed at stopping fraudulent claims.

    Among the cleared bills, Sh80 billion was allocated to infrastructure projects, some of which have already received payment.

    The rest of the approved amount covers supplies made to government ministries and agencies.

    The committee has so far reviewed 75 per cent of the total pending bills, which include those owed by the national executive, Parliament, the Judiciary, commissions, state corporations, and county governments.

    The final list of approved and rejected payments will be made public once the review is complete.

    Treasury has pledged to settle the cleared Sh230 billion swiftly, with some payments expected before the end of June and the rest after the current budget process.

    However, the government made it clear that no bill will be paid without adequate supporting documents.

    While the Treasury says the move is meant to eliminate fraud, many suppliers now face the harsh reality of being left out, despite having delivered goods or services.

    Some complain their documents were misplaced or dismissed unfairly, and are now preparing for court battles.

    The Ouko-led team’s mandate includes identifying false or fraudulent claims, a task that has already left a trail of disputes between suppliers and state agencies. The financial squeeze is already being felt, with many businesses warning of potential closures.

    A report by Auditor General Nancy Gathungu flagged Sh194 billion in pending bills as of November 2024.

    “Failure to settle the bills has an effect of withholding circulation of cash in the economy and affects the smooth operations of suppliers and MSMEs (Micro, Small and Medium Enterprises),” she noted.

    Gathungu’s report showed the Office of the President held Sh14 billion in pending bills, mostly inherited from projects under the former Nairobi Metropolitan Services.

    The Ministry of Defence topped the list for 2024 with Sh22.9 billion in unpaid bills, a sharp rise from the previous year.

    Other key defaulters include the Agriculture department at Sh13.6 billion, the National Police Service at Sh9.9 billion, and Correctional Services at Sh5.2 billion.

    One notable shift was seen in the Medical Services department, where pending bills dropped drastically from Sh41 billion to Sh4.9 billion.

    Meanwhile, the Teachers Service Commission had Sh3.3 billion in unpaid claims. Gathungu warned that delays in settling these bills not only cripple businesses but also reduce revenue collection from taxes such as VAT and Withholding Tax. “All these factors viewed holistically call for the Executive to put in place measures to deter the escalation of pending bills and to enforce discipline in public sector entities,” she said.

  • Okiya Omtatah Wins As Court Stops Re-advertisement Of The Auditor General’s Post

    Okiya Omtatah Wins As Court Stops Re-advertisement Of The Auditor General’s Post

    The Employment and Labour Relations Court has suspended the recruitment for an auditor General after the outspoken activist Okiya Omtatah filed a petition against the selecting panel.

    Auditor General position fell vacant last year in August after then Auditor General Edward Ouko’s term came to an end. Public Service Commission had stated that the government had to re-advertise for the vacancy after the selection panel failed to find a suitable candidate to fill the retired Ouko’s vacancy.

    According to activist Okiya Omtatah, all of the three candidates met all the requirements. Omtatah had sued the panel stating that it was unlawful to turn down the selection of the three candidates.

    “The decision to re-advertise the vacancy in the position of Auditor-General is unconstitutional and, therefore, invalid, null and void,” he said.

    In today’s ruling, Justice Stephen Radido temporarily halted re-advertisement for the post. The vacancy had been announced in 2019 December.

    “Pending the inter-partes hearing and determination of this case, the court at this moment issues an interim order prohibiting the sued parties and their agents. Howsoever acting, from giving effect to the advert, howsoever published, re-advertising the vacancy in the office of the Auditor-General and asking qualified and interested persons to apply,” Justice Stephen Radido said.

  • Retired Commissioner Isiah Osugo In Trouble Over Sh1.8B Theft At The Prison

    Retired Commissioner Isiah Osugo In Trouble Over Sh1.8B Theft At The Prison

    Auditor General Edward Ouko has exposed sh 1.8billion scam by Kenya Prisons department.

    Auditor General’s report exposes how Kenya Prisons paid phoney suppliers, made double payments for goods and services, procured fake bulletproof vests and jackets.

    Last month, EACC unearthed attempts to steal Sh4.8 billion through fictitious security contracts by top prison officials and the Matiangi led Interior ministry.

    This questionable payouts were dispatched during the tenure of Isaiah Osugo, The now retired Commissioner General of Kenya Prisons.

    Osugo has been holding the position for more than a decade.

    According to Ouko’s report,304.4 million paid at Prison headquarters ,on behalf of various prisons, for food rations could not be traced or accounted for.

    Ouko report has also exposed two suppliers who were paid Sh2.4 million by prison headquarters, on behalf of Kibos Medium Prison did not deliver the food.

    “Indications are that the payments were irregularly made to recipients who did not supply food to the prison,” reads part of Ouko’s report.

    Auditor General’s report revealed that Osugo swindled Sh12.4 million using forged pending bills for Kisumu Main Prison.

    Ouko also discovered cases of double payments totalling Sh22.5 million in connection with

    According to auditor general’s report, Usugo led department double paid non existing suppliers of Naivasha, Eldoret and Kakamega Prisons and Shikusa Borstal.

    “However, verification at the prisons revealed massive irregularities as the purported suppliers had never been contracted to supply food and there were no deliveries or receipts at the three prisons,” reads part of the Auditors report.

    Osugo and other senior prison bosses have been clearing multimillion fake pending bills.

    The report reveals that bills totalling to 288.6million reflected in the headquarters’ records could not be traced to the records of the prisons where food rations were allegedly delivered.

    Osugo also left cooked pending bill records worth 18.6 million for food rations. Auditor general’s report indicates the had already been paid before.

    Usugo led Prisons department is also on spot for procuring 300 substandard bulletproof and 300 bulletproof vests for Sh22.2 million and Sh20.9 million respectively.

    “Audit inspection carried out revealed that the body armour received do not have ballistic panels and cannot be used to protect staff against rifle fire, ammunition, knife stabs and sharp or pointed instruments,” reads part of Ouko’s report.

    In mid March this year, EACC  unearthed a Sh4.8 billion scandal executed via fictitious security contracts.

    The Audit also reveals that the Osugo led department double paid bills worth Sh2 million to the officer-in-charge of Naivasha Maximum Prison for construction of staff houses.

    Prisons also used 128.6 million to pay firewood suppliers countrywide without proof of delivery notes.

    Ouko report also raises a red flag on the award of a tender for construction of a perimeter wall at the Eldoret Prisons for 24.8 million.

    Auditor generals reveals that prisoners were engaged to construct the same wall despite Osugo dispatching additional Sh7.5 million on the project.

    Osugo’s department also oversaw the loss of 1.7 million on a tender for the installation of CCTV surveillance cameras at the Naivasha GK prison.

    Prisons headquarters paid 12 million for 190 five megapixels cameras, but the audit report revealed that only 158 cameras were accounted.

    “The audit further established that 52 cameras costing Sh 4.5 million installed at the reception and hospital blocks are defective and, therefore, not functioning,” reads part of Ouko’s Audit report.

    The audit report also revealed that the contractor supplied eight Power Distribution Boards instead of 30, resulting in a loss of 22 others costing Sh 550,000.

  • Auditor General Edward Ouko Reveals How Corrupt State Corporations Looted 823.7 Billions.

    Auditor General Edward Ouko Reveals How Corrupt State Corporations Looted 823.7 Billions.

    Auditor General Edward Ouko, has once again unearthed a multimillion State corporations fraud.

    According to Auditor general, the government risks losing Sh823.7 billion worth of outstanding loans advanced to 72 State corporations.

    From the documents seen by this site, Sh47.52 billion of these loans are dormant and have fallen due on various dates over the years.

    Auditor-General Edward Ouko’s Annual National Treasury report on government investment and public enterprises
    {outstanding loans} reveals that most of the loans were issued out by the National Treasury without the required procedure and documentation.

    “Failure to redeem the loans precipitate a high likelihood of defaulting and eventual loss of public funds because of continued write-offs of bad debts,” reads part of Auditor general’s report.

    The National Assembly has said that the management of the state corporations did not forward over their respective annual work plans, cashbooks, ledgers, quarterly reports, monitoring and evaluation reports for the loans.

    And just like any other State masterminded fraud, the loans did not have documentation determining the beneficiaries, terms of the loans and the authorisation of the disbursements.

    “This determination appears to be outside the department’s control, thus the department implements decisions that are made elsewhere. This is exhibited by the continued growth of the outstanding loans,” reads part of Ouko’s report.

    The National Assembly’s Public Accounts Committee (PAC) chaired by Ugunja MP Opiyo Wandayi is set to review Auditor Generals report and table their recommendations to the House.

    Another revelation in Ouko’s report is how the already defaulting institutions continue to receive funding from The National Treasury.

    This casts doubts on the backdoor criteria is being used by the Treasury to advance new loans to the Institutions.

    The heads of the 72 States have hidden their budgets, annual plans and, are also sitting on assessment, evaluation and performance reports of the loaning portfolios.

    This is how public funds are swindled by corrupt public servants.

    According to Ouko, without those budgets, annual plans and, assessment, evaluation and performance reports it’s difficult to determine whether public funds had been used properly.

    Here are some of the notorious parastatals with dormant loans in billions of shillings:

    Rural Electrification Authority 13.65 Million, Coast Water Service Board 7 million, Northern Water Services Board 5.39 million and Tanathi Water Services Board has Sh4.4 million.

    Also on the list of shame is Lake Victoria South Water Services Board with 3 million, Lake Victoria North Water Services Board 2.8million, the collapsing Mumias Sugar Company has 2.5 Billion, the National Water Conservation and Pipeline Corporation 2.46million.

    According Auditor general’s report, SONY Sugar Company limited books indicated that they have a loan of Sh770.28 million but Treasury says the have outstanding loans of Sh199.02 million.

    The already crippled Mumias Sugar Company limited has Sh3 billion as per its financial records but Treasury records have Sh2.5 billion.

    Also, Agro Chemicals owes the public Sh9.07 billion but National Treasury records only captured Sh1.11 billion.

    Tanathi Water Services Board has Sh5.20 billion in debt but Treasury records have 5.05 billion.

    Another swindle according to Ouko’s report is where Moi University owes the coffers 257.77 million but the Treasury has only listed 31.25 million.

    Kenya Meat Commission has 300million but Treasury has 90.24 million in its records.

    Utalii College has pending debts of 140.13 million but Treasury lists zero balance.

    Faulu Kenya owes the public 176.68 million but Treasury records shows 141.31 million only.

    IDB Capital limited alleges to have zero balance but Treasury records indicate they still owe the public 1.56 billion.

    Coffee Board of Kenya owes the public 976 million.

    Pyrethrum Board of Kenya 863 million, Kenya Industrial Estates 758 million.

    Funny enough, Co-operative Bank of Kenya also owes the government Sh476 million despite making billions of shillings in profit every year.

    These agencies managements do not pay the loans intentionally so that the government ends up writing off their debts.

    This is how government is splashing public money on the tables of greedy parastatals heads.

  • Auditor General Edward Ouko Exposes County Government’s Pending Bills Fraud

    Auditor General Edward Ouko Exposes County Government’s Pending Bills Fraud

    Auditor General investigations have revealed that county governments have faked debts exceeding Ksh.35 billion.

    This financial year, all the 47 county governments owe their individual suppliers up to Ksh.108 billion.

    Auditor general records indicate that this is the highest amount of pending bills in the history of in the devolved governance.

    The Presidential directive during Madaraka day set a deadline of settling all pending bills,10 days before end of this financial year.

    Auditor General Edward Ouko told this writer that there are critical integrity and accounting queries raised on the directive by President Kenyatta.

    The Auditor General okayed the payment of Sh 1.7 billion bills but rejected the settling of Ksh.11B bills that had been forwarded by Sonko led Nairobi county.

    Governor Nanok, whose County, Turkana, has been the second largest recipient of devolved funds after Nairobi has seen their faked up sh 2 Billion pending bills rejected by Auditor General.

    February this year, Waititu led Kiambu County presented a cooked up pending bills quotation of sh 3.3 billion.

    Auditor General’s report indicate that Governor Ferdinand Waititu County is only authorized to clear bills worth Ksh.1.8B.

    According to the Auditor Edward Ouko, Kisumu County had forwarded that they have Ksh.2.4 billion pending bills, with bills worth Ksh.683 million have been declared fake.

    Ali Hassan Joho, Mombasa county boss had presented Ksh.5.3B as his debt. But Ouko’s detectives declined bills worth Ksh 2.8 billion.

    Auditor general has also stopped the clearing of Nakuru’s 2 Billion non explained pending Bills.

    In West Pokot County, Prof. John Lonyangapuo has pending bills worth Ksh.1.7 billion declined by Auditor general. His County was cleared to receive only Ksh 483 million.

    Homa Bay County has only been cleared to receive Ksh.40 million from their pending bills quotation of Ksh1.6B.

    Senate Public Accounts and Investments Committee, PAIC, chair Moses Kajwang says the committee is will meet Auditor General next week to get briefed more light on the verification of pending bills, before tabling a detailed report before them in the August House.

    This payment of the pending bills has been robing the country billions.

    It’s high time now to our Judiciary to take serious investigations that Auditor general have given the country.

    All these faked pending bills claimants need to be prosecuted with the presented evidence and jailed.

    These claimants and their crony accomplices in air supplies have defrauded the taxpayers billions of shillings for ages, the State needs to have them spend the rest of their miserable life behind bars.