Hard truths. Bold Insights. Real talk.
According to the Auditor General, the institution has, for more than a decade, failed to provide ownership documents for freehold land and buildings valued at Sh 200 million based on a 2014 valuation. These include the Kenya National Theatre and adjoining parking areas, which remain key public assets whose legal status is unclear.
Kenyan MPs, through the Public Investments Committee, have summoned former NCIC commissioners and the ex-CEO to respond to Auditor-General audit queries spanning 2021/22 to 2024/25, including allowance concerns and large travel overspending.
The Senate has ordered dozens of county assemblies to appear within 60–90 days to explain audit failures and financial irregularities, warning of heightened scrutiny as it tightens oversight of devolved funds.
The Auditor-General noted that the legal services tied to the Environment and Land Court Petition No. E004 of 2022 were not included in the approved procurement plan for the 2022/2023 financial year, raising concerns about compliance with public finance rules.
The report also raises concern over questionable transactions, pointing to Sh15.64 billion reflected in bank records but not captured in the cash book. Of this, Sh14.89 billion has remained unresolved since 2008.
The Office of the Auditor General reported that by June 30, 2024, only Sh 6,093,366 remained, leaving a variance of Sh 6,818,373. MPs said the gap raised concerns of possible violation of Regulation 54(1) of the PFM (National Government) Regulations, 2015, which bars diversion of funds meant for specific use.
The audit findings come at a time when the Kenya Literature Bureau is facing declining financial performance. Its latest statements show a sharp fall in revenue, reflecting reduced demand for its publications.
The committee, chaired by Tindi Mwale, questioned officials led by Principal Administrative Secretary Moses Mbaruku over issues flagged by the Office of the Auditor General.
During the meeting on Tuesday, Chief Executive Officer Bernard Mbogoh told the committee that the delay in remittances by county governments has led to a steady rise in long-term receivables, which has in turn affected the fund’s financial position and made debt recovery more difficult.
The Auditor General also reported that four projects valued at a total of Sh81.8 million had not been completed despite exceeding their planned completion dates, raising questions on planning, supervision, and use of public resources.
Records presented to the committee indicate that Sh5,000,000 was released to a management committee account to support the rehabilitation of an existing borehole at Kongoni Primary School. The borehole had been drilled and fitted in 2003 by the Ministry of Water and Irrigation but was never officially commissioned or put into use. Over the years, parts of the installation were damaged through vandalism.
The report, which was submitted to Parliament, shows that the deficit rose by Sh492.12 billion from the earlier estimate of Sh768.6 billion, translating to about 6.3 per cent of the GDP and going beyond the ceiling set by MPs.