The State Department for Environment and Climate Change came under scrutiny over Sh640.7 million in pending bills, staffing shortages and financial management issues during a review by the National Assembly Public Accounts Committee.
Principal Secretary Festus Ng’eno appeared before the committee on Tuesday, chaired by Scott Tindi Mwale, to respond to audit queries contained in the report for the 2023/24 financial year.
The audit showed that the department had outstanding accounts payables amounting to Sh640,726,799, with Sh522,030,199 having been carried forward from the previous financial year.
The department acknowledged that some obligations remained unpaid during the period, saying, “It is true that not all long outstanding pending bills were paid during the year under review.”
It attributed the delays to inadequate funding and budget cuts, while stating that it had continued clearing the outstanding liabilities. The department said Sh323,729,821.15 relating to the year under review had since been paid.
The Auditor General warned that failure to settle bills within the year they arise could place additional pressure on future budgets.
The committee also questioned the department over 41 employees whose net pay fell below one-third of their basic salaries, contrary to the required threshold.
The department admitted the breach, saying, “The observation by the Auditor on the violation of the one third rule is true.”
It linked the problem to increased statutory deductions, including contributions to the Public Service Superannuation Scheme, Affordable Housing Levy, health insurance and NSSF, which it said had affected workers who previously met the threshold.
Another audit finding concerned delayed remittance of statutory deductions. The department blamed the delays on late release of funds by the National Treasury. The failure resulted in Sh1,046,988 in penalties and interest, with the Auditor General questioning the value obtained from the additional expenditure.
Staffing levels were also flagged, with the audit showing that 664 of 945 approved positions were occupied during the period under review, leaving 281 vacancies.
The department said its workforce had since risen to 738 against an authorised establishment of 927 as of December 2025. It reported receiving 55 new appointees and said the remaining 47 positions would be filled after the Public Service Commission completes the recruitment process.
The department was further questioned over an undisclosed Sh700,000 balance held at the Central Bank of Kenya as of June 30, 2024.
Management admitted the omission, saying, “It is also true that management did not disclose a balance of Sh.700,000 held in Central Bank of Kenya as at 30th June, 2024.”