Audit exposes opaque forest deals as billions go unaccounted for at KFS

Fresh questions have emerged over the management of public forests after an audit report exposed questionable dealings between the Kenya Forest Service and community forest associations, raising fears that billions of shillings could have been lost through weak oversight and unlawful arrangements.

The audit by Auditor General Nancy Gathungu paints the picture of a troubled institution struggling to enforce accountability in the management of public forests across the country.

In the review of KFS accounts for the financial year ending June 30, 2025, Gathungu flagged gaps in governance, missing financial records and possible violations of the law in agreements involving community forest associations.

At the centre of the findings is the participatory forest management model under which community forest associations are allowed to jointly manage forests together with KFS.

According to the report tabled in Parliament, several associations have been operating for years without presenting audited accounts despite handling huge amounts of public money collected through donations, contributions and other activities.

“For all the previous years, the association has not submitted certified accounts for review by an external auditor,” the report states in the case of Friends of Karura Community Forest Association.

The Auditor General questioned the accuracy of at least Sh1.3 billion collected by the association through donations and public contributions, saying the funds could not be fully verified.

“The accuracy and completeness of revenue from the contributions could not be confirmed,” the report reads in part.

The findings also revealed that revenue collected from activities linked to Karura Forest was neither disclosed nor remitted to KFS, raising concerns over accountability and transparency in the handling of public resources.

Gathungu warned that the problems identified in the audit may not be isolated to one association, saying similar practices appear to be taking place in other forests across the country.

“The office is planning to undertake a special audit in this area,” Gathungu said, citing anomalies including missing financial statements.

The report further raised concern over how some forest management agreements were awarded, saying there were violations of the law in the process.

The findings now pile pressure on KFS to explain how billions of shillings linked to public forests were handled without proper scrutiny and why key safeguards meant to protect public resources were ignored.