Nairobi County's Financial Accountability Under Scrutiny: Eight Key Questions Raised by Auditor General

05, Apr 2024 / 1 min read/ By Livenow Africa

Nairobi County Governor, Johnson Sakaja, finds himself under intense scrutiny as the Auditor General, Nancy Gathungu, reveals concerning financial irregularities in the county's financial accounting.

As of June 30, 2023, Gathungu's audit has pinpointed eight significant areas of concern, challenging the accuracy and completeness of Nairobi County's financial records.

The discrepancies identified range from misclassification of expenditure to unsupported payments, raising serious questions about the transparency and effectiveness of financial management under Governor Sakaja's administration.

Gathungu's report indicates a glaring mismatch between the reported figures in financial statements and trial balances, as well as discrepancies between financial statements and ledger balances, casting doubts on the reliability of the financial data.

One of the major issues highlighted by the Auditor General is the substantial variances in pending accounts payable balance, amounting to billions of Kenyan Shillings, without adequate explanation or verification.

Furthermore, misclassification of expenditure items and unsupported payments for goods, services, and Nairobi Metropolitan Services contracts suggest deficiencies in financial management practices and procurement processes.

The Auditor General's report underscores the urgent need for Governor Sakaja to provide explanations to the Public Accounts Committee regarding these discrepancies, as well as to address the broader concerns raised about Nairobi County's financial accountability.

Despite Nairobi County's leading role in revenue generation among devolved government units, Governor Sakaja's administration faces mounting pressure to rectify these financial irregularities and restore public trust in the county's financial affairs.

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