The Auditor-General’s report for Nairobi County for the financial year 2023/24 has exposed serious financial mismanagement under Governor Johnson Sakaja’s leadership.
The report revealed major discrepancies in how county funds were handled, raising concerns about corruption, inefficiency, and lack of accountability.One of the key findings was the misuse of funds through unexplained payments.
The county government paid Sh100 million to Nairobi City County Government (NCCG) third parties and pension contributions, but there was no clarity on why these payments were necessary.
Another Sh100 million was paid to the Kenya Revenue Authority (KRA) for tax arrears, yet the county failed to explain why these deductions were not remitted on time. This points to either negligence or deliberate mismanagement of public funds.
The report also uncovered shocking irregularities in the county’s payroll system. In April, May, and June 2024, thousands of county officers were found to be sharing the same bank account, agent code, and branch code.
The numbers were 7,777 officers in April, 6,123 in May, and 6,803 in June. This strongly suggests that ghost workers were being paid, which could be a scheme to steal public money.
Even more suspicious was the discovery that in August 2023, 74 officers had the same name in the payroll system, further pointing to fraud.
Additionally, six officers were listed on the payroll but did not receive any salaries, raising questions about why they were included in the first place. Meanwhile, some officers received more than their net earnings, leading to an overpayment of Sh5.3 million.
Others were paid gross salaries higher than the recommended limits, causing an overpayment of Sh8 million. This carelessness in salary payments not only wastes taxpayer money but also suggests the presence of fraudulent activities within the payroll system.
Even more shocking was the revelation that Sh148.6 million in salaries were paid without any Pay As You Earn (PAYE) deductions. This suggests either deliberate tax evasion or incompetence within the county’s financial management.
Furthermore, there was an unexplained difference of Sh1.39 billion between the Integrated Personnel and Payroll Database (IPPD) payroll and payment vouchers. Such a massive discrepancy cannot be ignored, as it raises suspicions of large-scale corruption.
The Health Department was also found to be involved in questionable financial activities. Sh317 million was paid to Community Health Volunteers, but 62 National Identity numbers were used for payments on both the IPPD and the health workers’ lists. This led to Sh28 million being paid without a clear explanation, suggesting double payments or the existence of ghost workers.
Another area of concern was the bursary program. The county government disbursed Sh301.4 million in bursaries to 35,114 students, but there was no acknowledgement from schools confirming receipt of the funds.
Without verification, it is impossible to determine if the money actually reached the intended students or if it was siphoned off by corrupt officials.
The Auditor-General’s report paints a clear picture of financial mismanagement, fraud, and inefficiency within Nairobi County under Governor Sakaja’s leadership.
The misuse of funds, suspicious payroll activities, unexplained payments, and lack of accountability in bursary disbursements all point to a failed administration. Nairobi residents are left to wonder where their taxes are going, as basic services remain poor while billions of shillings are lost in questionable transactions. If no action is taken, the county’s financial situation will only worsen, leaving the people of Nairobi to suffer the consequences of poor governance.
