The Women Enterprise Fund (WEF) is facing intense scrutiny following a recent audit report by Auditor General Nancy Gathungu, which uncovered irregularities amounting to KES 1.4 billion for the financial year ending June 30, 2024. The report highlights severe mismanagement and financial discrepancies within the fund, raising concerns over its ability to fulfill its mission of empowering women.
Among the most alarming findings is the transacting of KES 212 million through unauthorized mobile paybills, which officials failed to account for. The report notes, “The board irregularly instructed the transfer of funds from these paybills into the fund’s main account, violating an Executive Order from President William Ruto that mandated all state payments be processed through a unified paybill number 222222.” This failure to comply with the directive has left the KES 212 million untraceable.
Another KES 20 million withdrawal from a paybill in August 2023 lacked proper documentation, with no records detailing where the funds went. The audit also flagged KES 34 million paid out in gratuities without supporting paperwork, casting doubt on the legitimacy of these payments. “Given these gaps, we could not confirm the accuracy and completeness of the gratuity payments,” Gathungu stated.
The report further revealed significant discrepancies in the fund’s financial records, with KES 1.2 billion in unexplained differences, including KES 70 million in travel expenses and KES 118 million in loans disbursed to women’s groups. The audit also uncovered KES 678 million omitted from the fund’s ledgers and questioned the accuracy of the fund’s financial statements.
In terms of loan recovery, the audit found that the fund risks losing KES 71 million due to insufficient follow-up on defaulted loans, with no evidence that the legal office had pursued recovery efforts. Additionally, the fund’s financial health is deteriorating, with losses reaching KES 330 million, a sharp decline from the previous year’s surplus of KES 220 million.
Gathungu concluded, “The fund continued to operate at a loss, which, if not managed, may affect its future operations and the sustainability of its services.”