Auditor General Gathungu flags Sh1.12 billion in unsupported government spending

Auditor General Nancy Gathungu has raised fresh concerns over financial accountability in government after uncovering unsupported expenditure amounting to Sh1.12 billion across several Ministries, Departments and Agencies (MDAs) during the 2024/25 financial year.

In her latest audit report, Gathungu revealed that five government entities failed to provide sufficient documentation to support payments totaling Sh1,119,053,742, making it impossible for auditors to verify whether the funds were spent lawfully and for their intended purposes.

The findings point to persistent weaknesses in financial management systems within public institutions despite ongoing reforms aimed at enhancing transparency and accountability in the use of public resources.

According to the report, the State Department for Foreign Affairs recorded the largest amount of unsupported expenditure at Sh470.4 million, relating to trade and other payable amounts.

The Judiciary was also flagged after auditors were unable to verify employee-related expenditure amounting to Sh423 million.

The State Department for Social Protection and Senior Citizen Affairs came under scrutiny over Sh222 million transferred to the Kenya Social Economic Inclusion Project.

Gathungu noted that the amount differed from revenue reflected in the project’s financial statements, raising questions about the accuracy of the reported figures.

Meanwhile, the State Department for Culture, the Arts and Heritage failed to provide adequate supporting documents for Sh3.6 million spent on domestic travel and subsistence allowances.

“During the year under review, the audit revealed unsupported expenditure totalling Sh1,119,053,742 under Ministries, Departments and Agencies,” the Auditor General states in the report.

Gathungu warned that the inability of public entities to provide supporting records undermines confidence in government financial reports and exposes taxpayers’ money to potential abuse.

“In addition, failure by the entities to fully support payments casts doubt on the authenticity of the reported expenditure. It is also an indication of weak internal controls and governance in the affected entities,” she noted.

The Auditor General further observed that the failure to furnish audit records violates Section 62 of the Public Audit Act, 2015, which requires public institutions to provide auditors with all information necessary to carry out their mandate.

The law provides for penalties of up to Sh5 million, imprisonment for up to three years, or both for officials who fail to comply.

Beyond financial management concerns, the report highlighted widespread shortcomings in the management of public land and government assets.

Auditors established that 18 government entities lacked title deeds or ownership documents for properties under their control, exposing public assets to the risk of encroachment, ownership disputes, and possible loss.

The National Police Service emerged as the most affected institution, with 1,704 parcels of land lacking ownership documentation and an additional 68 properties embroiled in encroachment cases or ownership disputes.

The Independent Electoral and Boundaries Commission (IEBC) was also cited for 35 unregistered parcels of land and 25 additional parcels allocated by national and county governments without supporting ownership documents.

Similarly, the Teachers Service Commission (TSC) was found to have title deeds for only one of its nine parcels of land.

Other affected institutions include the Ministry of Defence, the State Department for Foreign Affairs, the State Department for Culture and Heritage, the State Department for Energy, the Judicial Service Commission, the State Department for Livestock Development, and the State Department for the Blue Economy and Fisheries.

To address the problem, Gathungu called for coordinated action by the Ministry of Lands, the National Land Commission and the National Treasury to regularise ownership of public assets and strengthen safeguards against the loss of government property.