Questions linger over veracity of Sh12.5 billion revenue reported by Nairobi County as auditors are denied access to NRS

Queries have been raised over the actual amount of revenue collected by the Nairobi City County Government after external auditors revealed they have not been able to access the revenue collection system since Governor Johnson Sakaja took over.

Appearing before the Justice and Legal Affairs Committee last week, the external auditors revealed that they have been locked out and hence unable to audit the Nairobi Revenue System (NRS).

They expressed their frustration citing budget cuts by the executive which they termed as a deliberate effort to stifle their work, which is in addition to a poor working environment.

The auditors stated that they have been unable to verify whether the revenue announced to have been collected by the county is accurate.

They told the committee that they have approached the city governor over the same but their efforts have proved futile.

They stated that they had written letters to Sakaja regarding the same but they have never received a response on the same.

“As auditors, we can only confirm what the county declares as revenue collected if we gain access to the system and use our expertise to evaluate it. We do not know where the revenue reports on performance by the county come from,” Ndirangu Ngunjiri, an external auditor of the Nairobi City County Government, stated.

“We have sought the attention of the governor but our attempts have failed,” he added.

Most of the auditors have now quit leaving the audit committee unable to complete its task as they are currently twenty-three instead of the required forty-seven auditors.

Boroughs and Administration County Executive Committee Member Stephen Gathuita Mwangi told the committee that Sakaja is set to address the grievances of the county’s external auditors.

“We are committed to supporting the auditors and ensuring accountability. The matters can only be resolved if addressed by the governor,” SG Mwangi stated.

The revelation by the auditors raises eyebrows on whether the Ksh 12.5 billion that was reportedly collected by the City government in the last financial year is correct.

JLAC chairman and Mugumoini MCA Jared Akama questions how the county can declare revenue collected yet auditors are unable to access the revenue collection system.

“How can we confirm that the figure being declared by the county government is accurate? The auditors expected to evaluate the system and give their opinion cannot access the NRS and are being intimidated,” Akama questioned.

This is even as the NRS remains a mystery to MCAs and city residents.

In 2023, the Nairobi City County Assembly tasked a 13-member ad hoc committee to probe an alleged loss of revenue at City Hall.

Among the various issues that the Makongeni MCA and Majority Leader Peter Imwatok-led committee looked at was the ownership of the Nairobi Revenue System (NRS).

However, having spent millions in the over twenty sittings within Nairobi, Mombasa, Naivasha, and even outside the country, one and a half years later, the committee has never tabled its report with its findings remaining a puzzle to both Nairobians and the City Assembly.

The report was expected to reveal the weaknesses of the collection system and what needed to be improved.