The Office of the Auditor-General (OAG) has defended the conduct of its staff after allegations emerged that some auditors demanded payments of up to Sh1.5 million from public school principals in exchange for favourable audit reports.
The allegations were reported by The Standard on September 23, 2026, following claims by school principals that some officers from the OAG were involved in an extortion scheme during audits. The principals, who spoke anonymously, reportedly said they feared victimisation if they were identified.
The claims have emerged as Parliament examines audit reports on public secondary schools that have raised concerns over the management of school finances and other public resources.
According to the reports cited by The Standard, audits tabled before the National Assembly in August found cases involving unauthorised levies, spending without proper supporting documents, failure to collect outstanding fees, unexplained cash withdrawals, unapproved bank loans, weaknesses in procurement systems and questionable investments by some schools.
The newspaper also reported that several national schools had charged fees above the Ministry of Education's approved annual cap of Sh53,580 per student.
Some of the schools reportedly attributed the additional charges to increasing operational costs and inflation.
The National Assembly Public Investments Committee on Governance and Education has been examining the audit findings, including differences between student enrolment figures recorded by schools and the information contained in the National Education Management Information System (NEMIS).
On September 18, The Standard reported that the committee had raised concerns over capitation funding and enrolment figures and was considering engaging the Ministry of Education on whether the existing secondary school fee structure was sufficient.
The allegations involving auditors have now brought the conduct of those carrying out the audits into focus as Parliament continues to examine the financial concerns raised in the reports.
In a statement dated September 23, the OAG said it had taken note of reports aired by KTN on September 22 and published by The Standard the following day.
The audit office said it treats allegations against its employees seriously and has established channels through which concerns about the conduct of its staff can be reported and addressed.
“We therefore, treat the allegations on integrity of our staff with utmost seriousness. As a proactive measure we have internal mechanisms to address any issue that may arise on this front. Our avenues remain open for any individual who may be having issues on the conduct of our staff,” the OAG said.
The office further called on anyone with information concerning alleged misconduct to report the matter to the relevant investigative authorities, including the Ethics and Anti-Corruption Commission, which has the constitutional mandate to investigate such complaints.
The OAG said its constitutional role is to examine the use and management of public resources and present its findings to Parliament and county assemblies.
It also referred to a High Court judgment delivered on January 26, 2022, in Petition No. 33 of 2019, which reaffirmed that public funds transferred to private entities remain subject to audit by the Auditor-General.
The office said it started auditing schools as an Independent External Auditor in the 2022/2023 financial year.
Since taking up the role, the OAG said its audits have raised concerns relating to financial records, school funding, enrolment, expenditure management, risk management and compliance with laws and regulations.
The audit office urged school heads to respond to the findings contained in its reports instead of shifting attention to other issues.
“We, therefore, urge the School Heads to respond to the audit findings in our reports, as other public entities have been doing, and desist from deflecting attention from the audit issues raised, which if well resolved, would enable them manage the schools more efficiently and effectively in support of the education needs and aspirations of the learners and the country.”
The OAG said all public entities are required to uphold accountability, transparency and good governance when managing public resources.
It added that it offers advisory audit services to public institutions to help improve internal controls, compliance with laws and regulations and the keeping of proper financial records.
The allegations against individual auditors have not been established by a court.
The OAG has asked individuals with complaints about the conduct of its employees to use its internal reporting channels or approach the relevant investigative agencies, even as parliamentary scrutiny of financial management in public schools continues.
“We remain committed to this responsibility to ensure our work makes a difference in the lives and livelihoods of Kenyans,” the OAG concluded.