A Senate watchdog committee has flagged major audit gaps in Kwale County after revelations that transactions worth Sh1.9 billion were initiated and later voided on the Integrated Financial Management Information System (IFMIS) without adequate documentation or approvals.
The County Public Accounts Committee (CPAC) directed Kwale Governor Fatuma Achani to take administrative action against county officers who failed to submit critical documents to the Office of the Auditor-General during the 2024/25 audit cycle.
The directive was issued on Wednesday, February 4, 2026, during a session held at Parliament Buildings, where the Governor was grilled over the county’s audit report for the 2024/25 financial year.
CPAC raised concern after scrutinising IFMIS payment records, which showed that transactions amounting to Sh1.9 billion had been initiated but later voided.
According to the committee, the transactions lacked proper justification and supporting approvals.
The committee was informed that key documents required for audit review were missing. These included voided payment vouchers, formal requests to void payments, approvals from the National Treasury, and exchequer requisitions submitted to the Controller of Budget.
Governor Achani attributed the voiding of the transactions to a change in the banking system implemented by the Central Bank of Kenya.
“The new system could not carry forward uncleared transactions from the previous system,” she told the committee.
She explained that the county sought approval to void the payments so they could be reprocessed once the new system was fully operational.
The Governor further stated that the transactions had not reached the Controller of Budget stage for funds requisition, making it impossible for the county to provide exchequer requisitions during the audit.
She maintained that the transactions were later processed afresh and that the necessary approvals were obtained.
“Supporting documents, including payment vouchers and departmental requests to void the payments, were subsequently availed, alongside approvals for spending rights from the National Treasury through the County Treasury,” Governor Achani said.
However, CPAC Chairperson Senator Moses Kajwang questioned why the documents were not submitted during the audit process.
“You should take action against your officers, or the Committee will direct their respective professional bodies to take action,” Senator Kajwang warned, adding that the omissions amounted to a violation of the Public Audit Act.
Despite the concerns, the committee noted that Kwale County has relatively low pending bills compared to other counties. The county’s pending bills currently stand at about Sh200 million.
“It is good that your pending bills are not in the billions,” Senator Samson Cherargei remarked, though Senator Kajwang cautioned against premature praise.
CPAC directed Governor Achani to submit a detailed report on pending bills based on an ageing analysis, indicating amounts outstanding for more than three years, two years, and one year, as well as reasons for delayed settlement.
The committee also instructed the Office of the Auditor-General to keep the matter under review, noting it will be revisited during the audit implementation stage.
