Nakuru County Corruption: Exposing Financial Irregularities and Leadership Failures Under Governor Susan Kihika

In a shocking revelation, the Auditor General’s report has exposed severe financial irregularities in Nakuru County’s expenditure for the 2022/2023 financial year, casting a dark shadow over Governor Susan Kihika’s administration.

The audit findings highlight gross mismanagement and questionable practices, pointing to systemic corruption and a dire need for accountability.

Nakuru County Corruption: Governor Kihika’s Employee Compensation Discrepancies and A Billion-Shilling Mystery

One of the most glaring issues identified in the audit is the discrepancy in employee compensation. Nakuru County reported spending over Sh6.9 billion on salaries, yet the payroll records reflect a total of Sh5.75 billion.

This discrepancy of Sh1.15 billion remains unexplained, raising serious concerns about financial integrity.

Additionally, Sh28.37 million, intended for the National Industrial Training Authority levy, was incorrectly classified under pension contributions, further complicating the financial landscape.

Payroll System Malfunctions: Non-Compliance and Data Gaps

The audit uncovered that Nakuru County paid Sh75.57 million in salaries outside the Integrated Personnel Payroll Data (IPPD) System, in violation of Treasury regulations.

This off-system payment method, used for 199 employees, failed to capture essential data, compromising transparency.

Moreover, the report found that 28 county officers had been retained beyond the retirement age of 60 without proper documentation, further questioning the administration’s adherence to regulations.

Irregular Legal Fees: A Costly Oversight

Another troubling aspect is the payment of Sh116.08 million to external law firms without adhering to proper procurement procedures.

There was a lack of evidence for prior approval, negotiation, or itemized fee notes, suggesting that the legal fees charged may not have been justified or competitive.

This raises red flags about the procurement process and the potential misuse of county funds.

Procurement Violations: Bypassing Established Protocols

The audit revealed significant procurement violations, including the purchase of drugs and medical supplies worth Sh525.10 million from private suppliers, in contravention of the Kenya Medical Supplies Authority (KEMSA) Act.

Additionally, Sh50 million was transferred to the school feeding program fund without the necessary enabling legislation, highlighting further irregularities in financial management.

Delayed Projects: Unfulfilled Promises and Missed Deadlines

Several key projects in Nakuru County have faced significant delays. The construction of the Sh288.58 million office block in Milimani and the Sh886.63 million Treasury Headquarters have both been stalled, causing concern among stakeholders.

Moreover, the county failed to remit Sh88.90 million in pension deductions, exacerbating the financial mismanagement crisis.

Inaccuracies in Financial Statements: Unaccounted Variances

The Auditor General’s report also highlights multiple inaccuracies in Nakuru County’s financial statements. Notable variances include:

• A discrepancy of Kshs.1,682,880,884 between the reported transfer from the County Revenue Fund (CRF) and the audited amount.
• Unexplained variances of Kshs.20,162 in the statement of receipts and payments compared to the recomputed amounts.
• An unexplained variance of Kshs.251,757,686 between the statement of assets and liabilities and the statement of cash flow.
• Inaccurate and unsupported payroll and compensation figures, including a Kshs.1,148,662,673 variance between reported compensation and payroll totals.

These discrepancies undermine the credibility of the financial statements and highlight the need for stringent oversight and corrective measures.

Non-Adherence to Cut-Off Period: Post-Year-End Transactions

The report also found non-compliance with cut-off period regulations. Transactions worth Kshs.1,767,106,640, incurred after the reporting period, were incorrectly included in the previous financial year’s accounts.

This breach of Regulation 97(4) of the Public Finance Management (County Governments) Regulations, 2015 further complicates the financial accuracy and completeness of the county’s reports.

Nakuru County Corruption Scandals: Unsupported Expenditures and Patterns of Financial Irregularities

Additional concerns include unsupported routine maintenance expenses, training costs, and research expenditures.

For instance, Sh36,977,382 spent on vehicle maintenance lacked proper documentation, while Sh67,767,772 allocated for training expenses was not supported by adequate needs assessments or training plans.

Unsupported expenditures in research, project preparation, and design also raise questions about the legitimacy of these transactions.

Bank Balance Inaccuracies: A Lack of Transparency

The audit revealed significant inaccuracies in the reported bank balances. Unpresented cheques and discrepancies between bank balances and cashbook records further cloud the financial transparency of Nakuru County.

The failure to disclose and reconcile bank accounts adds another layer of complexity to the ongoing financial oversight issues.

Governor Susan Kihika’s Leadership: A Call for Accountability

Under Governor Susan Kihika’s leadership, Nakuru County has faced mounting scrutiny over its financial management practices.

The audit findings reveal a pattern of corruption, mismanagement, and non-compliance with regulations. The discrepancies and irregularities highlight systemic issues that demand immediate and comprehensive reforms.

As Nakuru County grapples with these revelations, there is an urgent need for accountability and corrective action.

The Auditor General’s report underscores the critical importance of transparent financial practices and robust oversight mechanisms to restore public trust and ensure the proper use of taxpayer funds.

In conclusion, the corruption scandal in Nakuru County serves as a stark reminder of the challenges facing Kenya’s local governments.

As the spotlight turns to Governor Susan Kihika and her administration, the focus must shift to addressing these issues with the seriousness and urgency they warrant.

The path forward should prioritize transparency, accountability, and rigorous financial management to prevent further erosion of public confidence.