A new audit shows that various ministries, state departments and donor implementing agencies failed to explain expenditure running to Sh5.8 billion as of June 30, 2022.
The details reveal Sh3.2 billion of the unsupported expenditure was incurred in Ministries, Departments and Agencies (MDAs) while Sh2.6 billion meant for donor-funded projects could not be traced.
Kenya is at the moment in the eye of a storm with the Global Fund following the botched Sh3.7 billion mosquito nets tender at the Kenya Medical Supplies Agency.
In March, Deputy President Rigathi Gachagua repeatedly claimed he had details of how money was swindled by top officials in Uhuru's last days in office.
Gachagua promised to name Cabinet secretaries and principal secretaries who were involved but two months down the line Kenyans are still waiting.
“They stole Sh24 billion before they left office,” Gachagua claimed.
He alleged the money was carted away in bags and then moved to officials' homes in choppers.
Unsupported expenditure is not proof of theft but raises weighty integrity queries about why accounting officers cannot provide supporting documents.
The revelations by Auditor General Nancy Gathungu could put a number of accounting officers in trouble.
“Failure to support or provide requisite documents for audit is in breach of Section 62 of the Public Audit Act, 2015,” Gathungu said in the report.
The law states that a person who, without justification, fails to provide information required by auditors – and within a reasonable time, is liable to a fine of up to Sh5 million or a jail term or both.
The same applies to accounting officers who submit false or misleading information.
“Failure by the entities to fully support payments casts doubt on the authenticity of the reported expenditure,” Gathungu said.
“It is also an indication of weak internal controls and governance in the affected entities.”
The University Education department topped the list of entities that failed to account for expenditures totalling Sh1.3 billion.
The accounting officers failed to explain how they spent the billion on scholarships, foreign travel and capitation to public and private universities.
The Ministry of Petroleum and Mining was unable to account for over Sh479 million it claimed was transferred to National Oil Corporation, Energy and Petroleum Regulatory Authority and National Mining Corporation.
The auditor has also cast doubt on Sh310 million spent by the Ministry of Health purportedly on adjustments, consultancy payments, and emergency relief and refugee assistance.
The auditor has rejected the ministry’s explanation that part of the money was paid to health attaches in Geneva and for a vector control project.
Also flagged is unclear spending of Global Fund cash, the details emerging at a time Afya House is under pressure to refund to the donor up to Sh224 million that was allegedly spent irregularly.
The latest audit also casts doubt on some Sh567 million Global Fund cash for HIV response.
Gathungu says the National Treasury did not provide supporting expenditure returns and schedules to back the payout.
A similar case was cited in the TB, Leprosy and Lung Diseases programme where Treasury officials did not support spending to the tune of Sh326 million.
“Supporting expenditure returns and schedules not provided,” the auditor said, pointing out another Sh112 million that was not backed in a malaria-free programme.
Kenya National Highways Authority, the audit shows, could not explain how it spent Sh268 million on several donor-funded roads.
Geothermal Development Company officials were unable to justify how it used Sh510 million for in the Menengai Geothermal project.
GDC, to the dissatisfaction of auditors, said it used the cash to purchase specialised plant and equipment as well as exploration and evaluation activities, medical expenses and insurance expenses.
The ASALs department could not explain Sh284 million it claimed were payments to temporary employees under the Labour Intensive Public Works programme.
Also flagged was Sh188 million ASALs officers claimed went to printing, advertising and routine maintenance of motor vehicles and other assets.
Kisumu county government also failed to back up Sh69 million it claimed was incurred on audit fees, per diems, seminars and travel, feasibility study, design and construction of the projects.
Part of it was unsupported payments to the Commissioner of Domestic Taxes, the audit report shows.
Social Security and Protection department failed to explain Sh244 million spent on the purchase of specialised materials and supplies.
Some Sh171 million that the Fisheries department claimed it paid for construction and civil works, reversal transactions, payments off IPPD, and social security benefits have been cited.
Department for Vocational and Technical Training’s Sh149.8 million spent towards disbursement for supply of low voltage boards to 15 TVET institutions was also unverifiable.
“Payment vouchers and information on how the firm was identified, selected and awarded were not provided,” Gathungu said.
The Department for Infrastructure could not account for Sh120 million incurred on training, specialised materials and services, and renovations.
Sh111 million in transfers to Civil Servants Housing Fund was also not supported, and so were payments made outside the IPPD system.
The Department for Vocational and Technical Training failed to explain Sh50 million in rent expenditure for various departments.
Environment officials failed to back up Sh21 million expended on tree seedling potting bags.
Payments to the tune of Sh20 million made to a local company by the Tourism department were not explained.
Unsupported payments of Sh19 million for specialised materials and the installation of a gypsum ceiling at Kilimo House have been flagged.
The Public Service Commission failed to support Sh8.5 million in leave commutation expenditure.
The youth department has been put on the spot over Sh1.4 unsupported fuel expenditure and Sh118 million in payments made in the Vijana Vuka na Afya Youth project.
The Social Protection department further failed to support Sh94 million it claimed went to domestic travel and training programmes.
Kenha failed to explain Sh87 million spent on the Mombasa port area road project on the construction of roads and travel and subsistence allowances.
Another Sh71 million was not backed in the Bagamoyo-Horohoro-Lunga Lunga-Malindi Road project.
Some Sh62 million claimed to have gone to imprest, air tickets, and purchase of equipment and machinery in the Sirari Corridor project is also in doubt.
The auditor has also cast doubt on Sh46.9 million Kenha spent on the Kibwezi-Mutomo road project on acquisition of non-financial assets.
The National Drought Management Authority failed to explain Sh75 million unsupported payments to service providers
Central Rift Valley Water Works Development Agency officials did not back up subsistence allowance to the tune of Sh29 million.
