Questions Linger Over Sh12.5 Billion Revenue: Nairobi County Auditors Denied Access to NRS Records

Auditors raise red flags as transparency concerns mount over Nairobi County’s financial reporting.

Concerns have been raised over the accuracy of revenue collected by the Nairobi City County Government after external auditors revealed they have been denied access to the revenue collection system since Governor Johnson Sakaja assumed office.

Appearing before the Justice and Legal Affairs Committee (JLAC) last week, the external auditors disclosed that they have been locked out of the Nairobi Revenue System (NRS), rendering them unable to conduct a comprehensive audit.

The auditors expressed frustration over budget cuts by the executive, which they described as a deliberate effort to hinder their work. They also cited a poor working environment as an additional challenge.

According to the auditors, they have been unable to verify the accuracy of the revenue figures announced by the county. They informed the committee that they had reached out to Governor Sakaja regarding the issue, but their efforts have yielded no response.

“As auditors, we can only confirm the revenue declared by the county if we gain access to the system and use our expertise to evaluate it. We do not know the source of the revenue performance reports being issued by the county,” said Ndirangu Ngunjiri, an external auditor for the Nairobi City County Government.

“We have sought the governor’s attention, but our attempts have been unsuccessful,” he added.

The situation has led to a mass exodus of auditors, leaving the audit committee understaffed. Currently, there are only 23 auditors, far fewer than the required 47, making it impossible for the committee to fulfill its mandate.

Boroughs and Administration County Executive Committee Member Stephen Gathuita Mwangi assured the committee that Governor Sakaja is committed to addressing the grievances of the external auditors.

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

The auditors’ revelations have cast doubt on the accuracy of the Sh12.5 billion reportedly collected by the county government in the last financial year.

JLAC Chairman and Mugumoini MCA Jared Akama questioned how the county could declare revenue figures without allowing auditors access to the revenue collection system.

“How can we confirm the accuracy of the figures declared by the county government? The auditors tasked with evaluating the system and providing an opinion cannot access the NRS and are being intimidated,” Akama said.

The NRS remains shrouded in mystery for both Members of the County Assembly (MCAs) and city residents.

In 2023, the Nairobi City County Assembly established a 13-member ad hoc committee to investigate alleged revenue losses at City Hall. Among the issues probed by the committee, led by Makongeni MCA and Majority Leader Peter Imwatok, was the ownership and operation of the Nairobi Revenue System (NRS).

Despite spending millions of shillings on over 20 sittings in Nairobi, Mombasa, Naivasha, and even outside the country, the committee has yet to table its report. A year and a half later, its findings remain unknown to both Nairobians and the County Assembly.

The report was expected to highlight weaknesses in the revenue collection system and recommend improvements, but its delay has only deepened concerns over transparency and accountability in City Hall.