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Auditor-General raises red flag over budget cuts, cites oversight risks

Brian Murimi by Brian Murimi
May 21, 2024
in News
Reading Time: 2 mins read

Kenya’s Auditor-General has urged lawmakers to reinstate budget cuts, warning that reduced funding could impair the office’s ability to deliver timely and quality audit reports critical for effective oversight of public finances.

In an appeal to the National Assembly’s Budget and Appropriations Committee, Auditor-General Nancy Gathungu said the proposed allocations for the 2024/25 fiscal year and cuts to the current year’s budget risked undermining her office’s constitutional mandate.

“We agreed to prioritize the Mombasa Regional Office, but it is also imperative we start the preliminary planning for the Headquarters,” Gathungu told the committee chaired by Hon. Ndindi Nyoro. “I would request an allocation of KES 500 million for the OAG Headquarters project out of the estimated project cost of Kshs. 6 billion, to enable us commence the process.”

The Auditor-General’s submission comes amid intensifying scrutiny over the use of public resources, with the office playing a pivotal role in flagging irregularities and holding government entities accountable. A well-resourced audit function is seen as crucial for maintaining fiscal discipline and combating graft.

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According to Gathungu, the 2024 Budget Policy Statement had allocated her office KES 8.6 billion, including KES 8.28 billion for recurrent expenditure and KES 315 million for development. However, the proposed estimates have reduced the recurrent budget to KES 8.21 billion, affecting areas such as training, supplies, and operational expenses.

“With the delays, the costs are escalating, and we are incurring more in terms of leases,” Gathungu said, referring to the long-delayed plan to construct the office’s headquarters in Nairobi, initially estimated at KES 6 billion in 2014.

While welcoming an enhancement of KES 278 million for personnel emoluments, the Auditor-General noted that the allocation remained KES 84.5 million short of the estimated Kshs. 5.26 billion required, potentially impacting the planned recruitment of 150 audit associates.

Hon. Samuel Atandi questioned the need for additional personnel, suggesting investing more in technology to cut expenses. Gathungu responded that her office was leveraging technology but continued to outsource and recruit additional staff to meet the audit demands.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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