Gachagua urges legal push for audit of Northern Kenya funds since 2013
During an interview on Thursday, Gachagua said the audit should include all disbursements from the Constituency Development Fund and the Equalisation Fund.
During an interview on Thursday, Gachagua said the audit should include all disbursements from the Constituency Development Fund and the Equalisation Fund.
The report shows that several counties continue to operate funds beyond their legal life, exposing them to audits and potential legal action. Section 116 of the Public Finance Management (PFM) Act, 2012, allows counties to set up public funds with approval from the county executive committee and county assembly. According to Regulation 197(1)(i) of the PFM (County Governments) Regulations, 2015, a fund can only last ten years unless formally extended by the county assembly. If not renewed, the funds automatically expire.
The plan covers Phase 2B of the Naivasha–Kisumu SGR, the proposed SGR extension to Uganda, and the Nairobi Railway City Central Station. The Cabinet said these projects place rail transport at the centre of the country’s transport network and regional integration plans.
Among the worst performers was the Kenya African National Union (Kanu), which recorded the highest unsupported balances at Sh212,743,031. This comprised trade payables of Sh37,352,734 and borrowings or loans worth Sh175,390,297, none of which were backed by documentation.
The report highlights cases where employees appeared on more than one payroll, a practice outlawed by Article 77 of the Constitution and reinforced by the Leadership and Integrity Act, which bars full-time state officers from holding any other paid employment due to conflict of interest.
Obado is facing trial alongside his four children and 11 other individuals. They are accused of embezzling public funds while he was governor of Migori County.
Senator Moses Kajwang’, who chairs PAC committee, said CPAC is compiling a list of counties with serious financial irregularities to recommend to the Treasury for possible withholding of funds.
Health CS Aden Duale Duale said preliminary findings had uncovered thousands of irregular hires who have been illegally drawing salaries from the programme.
The directive follows a petition tabled before the Senate Committee on Devolution and Intergovernmental Relations by Laban Omusundi, the Executive Director of the Grassroots Civilian Oversight Initiative and a resident of Nakuru County.
According to the Controller of Budget’s 2024-25 budget implementation review, none of the 47 counties used more than 50 per cent of their development budgets in the first nine months of the financial year.