Parliament has launched a detailed review of how billions of shillings are being managed in some of Kenya’s most important public health institutions.
Recent audit reports have revealed serious financial and administrative weaknesses, raising concern among lawmakers about how public resources are handled.
The scrutiny follows findings by the National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture.
The committee, chaired by Navakholo MP Emmanuel Wangwe, examined Auditor General reports for the 2022/2023 and 2023/2024 financial years.
Members said the issues identified point to deep and long-standing weaknesses in financial management, asset tracking, and procurement systems at Kenyatta National Hospital, Kenya Medical Research Institute, and the Pharmacy and Poisons Board.
At Kenyatta National Hospital, auditors reported a loss of Sh36 million in rental income from staff housing. This came even after the hospital board approved a 10 percent rent increase. Lawmakers questioned why rents were raised when some housing units are marked for demolition and occupancy stands at only 60 percent.
Rental income has also fallen below projections by 21 percent. MPs argued that increasing rent does not solve the deeper problems affecting revenue collection and management.
Procurement practices at the hospital were also questioned.
Auditors found that restricted requests for quotations were used to buy cleaning materials instead of open competitive tendering.
Hospital management described changes in contracting methods as administrative errors, but committee members insisted that procurement rules must be followed strictly to avoid misuse of public funds.
At the Kenya Medical Research Institute, lawmakers were concerned about a missing title deed for a 2.4 hectare piece of land in Nairobi valued at more than Sh4 billion.
The committee heard that a private developer allegedly used the title deed to secure a bank loan without clear authorization.
Although the loan was reportedly repaid, the original document has not been traced. Conflicting explanations from different offices added to the concern.
The committee also discovered that 66 vehicles in active use were not recorded in the institute’s asset register. Management blamed valuation issues linked to donor funded assets, but MPs said proper documentation is a basic requirement.
In addition, a Sh143 million staff mortgage fund was set up without approval from the Cabinet Secretary, raising questions about compliance with the Public Finance Management Act.
At the Pharmacy and Poisons Board, auditors flagged Sh75 million linked to land for its headquarters that lacked a valid title deed at the time of audit.
There were also concerns about undisclosed land in Machakos and Sh5.25 million spent on vehicle repairs without proper inspection reports.
Lawmakers further raised concerns about weaknesses in monitoring medicines, especially with challenges such as porous borders and limited staffing.
The committee is expected to make firm recommendations after completing its review.
The findings have increased pressure on public health agencies to strengthen internal controls, improve record keeping, and ensure that taxpayer funds are protected.
