KALRO is under heavy scrutiny in Parliament over its management of 191 active bank accounts, with MPs questioning whether such a large number is necessary or exposes public funds to risk.
The Public Investments Committee on Social Services Administration and Agriculture (PIC-SSAA), chaired by Navakholo MP Emmanuel Wangwe, summoned KALRO officials to respond to audit queries covering the 2014/2015 to 2021/2022 financial years.
Lawmakers focused on whether KALRO has adequate internal controls, proper oversight, and mechanisms to reconcile transactions across nearly 200 accounts.
Finance Director David Wachira told the Committee that most accounts are linked to donor-funded projects, including those financed by the World Bank and the European Union, which require dedicated accounts.
He also explained that KALRO operates 52 research centers across the country, each of which needs operational accounts to manage local research activities.
Despite this, MPs expressed concerns that multiple accounts could weaken accountability, delay reconciliation, and conceal irregular withdrawals.
They demanded evidence of how cash flows are monitored, duplication is prevented, and unauthorized access is blocked.
Committee members warned that managing 191 accounts creates a risk of financial mismanagement.
They questioned whether KALRO consolidates reporting or manages the accounts independently, and how often balances are reconciled and signed off. Lawmakers emphasized that public institutions must maintain transparency, and poor supervision could lead to suspicion of fund diversion.
The Committee directed KALRO to submit detailed bank reconciliation statements, supervisory reports, land ownership documents, and updated asset valuation reports.
The audit also raised questions over a Ksh215 million discrepancy in the valuation of a research building.
Newly appointed Director General Dr Patrick Ketiem told MPs that the difference arose because the valuation was done four months before the project reached practical completion.
MPs rejected verbal explanations and demanded documentary proof to reconcile the figures, warning that inconsistencies could mask inflated costs or accounting errors.
Additionally, KALRO disclosed that it recently recruited 224 staff members to address succession gaps and strengthen operations after a five-year hiring freeze.
While MPs welcomed capacity-building efforts, they cautioned that payroll expansion must align with budget discipline and financial controls.
The Committee gave KALRO one week to compile and submit all requested documentation and ordered officials to appear again after submission.
Parliament plans to finalize scrutiny of all audit years to determine whether the institution complies with public finance regulations.
The outcome of this review could lead to tighter financial controls or structural reforms if KALRO cannot justify the necessity and oversight of its 191 bank accounts.
