County governments are under renewed pressure after the Senate moved to trigger investigations into how billions of shillings were handled, following an audit that exposed irregular spending, missing funds and weak financial controls across several devolved units.
A report by the Senate County Public Accounts Committee released this month has called on the Ethics and Anti-Corruption Commission and the Directorate of Criminal Investigations to examine the conduct of county officials, recover lost money and ensure those responsible are held to account.
“The DCI shall investigate the breach of Sections 62(1)(b) and (c) of the Public Audit Act (Cap. 412B) by the county public offi cers and, where criminality is established, refer the matter to the Director of Public Prosecutions for prosecution,” the report read.
The recommendations come after a three-month review of the Auditor-General’s reports for the 2024–25 financial year, which revealed persistent failures in financial management and oversight in counties.
Led by Homa Bay Senator Moses Kajwang’, the committee pointed to specific cases that require urgent attention. In Tana River, investigators are expected to look into the cancellation or redirection of 1,229 transactions valued at Sh1 billion, whose details remain unclear.
Senators said the matter points to possible violations of the law and should lead to prosecution if wrongdoing is confirmed.
The committee also wants the anti-graft agency to investigate the use of Sh69.92 million reportedly spent on air tickets without any supporting records. Lawmakers raised concerns that funds meant to settle pending bills may have been misused.
In Turkana county, attention has been drawn to payments amounting to Sh261.48 million made to 1,252 individuals who were not listed in the official payroll. The committee warned that this could be evidence of ghost workers and payroll fraud.
“The committee recommends that the EACC undertake investigations… with a view to recommending prosecution,” the report states in multiple instances.
Further findings show that several counties processed salary payments outside approved payroll systems, raising wider concerns about the integrity of staff compensation.
The Senate warned that these cases reflect a broader pattern of poor financial discipline in counties. According to the report, billions of shillings cannot be traced due to weak record-keeping and failure by officials to cooperate with auditors.
A key issue raised is the failure by county executives to submit required financial documents, leading to disclaimers and qualified opinions from the Auditor-General.
“This obstruction makes it impossible to ascertain the true financial position of these entities and exposes public assets to the risk of loss, waste and misuse,” the committee said.
The report further shows that many counties do not maintain proper asset registers, with missing or incomplete details on public property such as cost, location and acquisition dates.
In some instances, counties were found to have spent public funds on projects built on land without ownership documents, exposing such investments to the risk of legal disputes.
Lawmakers also expressed concern over rising debts at the county level. Pending bills in at least 15 counties stand at Sh32.3 billion, though the actual figure could be higher due to unverified claims.
“The more significant risk lies in the fact that a substantial portion of this debt is unsupported… rendering the true liability potentially much higher,” the report states.
Contractors and suppliers have waited years for payment, raising fears that funds set aside to clear these debts may have been diverted.
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