Auditor-General flags governance gaps at City Hall but commends Nairobi's financial progress
The report is divided into three key areas, with the first focusing on financial statements, evaluating their compliance with reporting standards, accounting practices, and relevant laws.
The Auditor-General's report on Nairobi County has flagged critical gaps in governance, internal controls, and the use of public resources.
However, the Johnson Sakaja-led administration has also been commended for fairly presenting its financial statements for the year ending June 30, 2024, resulting in a qualified opinion.
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"I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the audit," the Auditor-General stated.
"In my opinion, except for the effect of the matters described in the Basis for Qualified Opinion section of my report, the financial statements present fairly, in all material respects, the financial position of the County Revenue Fund as of June 30, 2024."
The report is divided into three key areas, with the first focusing on financial statements, evaluating their compliance with reporting standards, accounting practices, and relevant laws.
The second examines public resources, assessing whether funds are utilised prudently and transparently to ensure value for money.
Nairobi Governor Johnson Sakaja during a cabinet meeting at City Hall, Nairobi on January 7, 2024. (Nairobi County Government)
The third area addresses internal controls and governance, reviewing the effectiveness of governance frameworks, risk management, and operational controls.
While the county made strides in financial reporting, the qualified opinion points to material misstatements and gaps in governance.
In April 2024, Auditor General Nancy Gathungu raised concerns over more than Sh20 billion in questionable and irregular spending within the Nairobi County government.
Her report revealed what appears to be a serious failure in the county's financial management, pointing to possible large-scale corruption at City Hall.
The report, which covers the financial audit for the Nairobi City County Executive for the period ending June 30, 2023, showed that the administration led by Governor Sakaja struggled to explain various expenditures, questionable purchases, and instances of double payments.
Among the most troubling findings were issues with the acquisition of assets valued at over Sh566.97 million.
The audit revealed several issues with payment vouchers for road construction and other civil works worth Sh566.97 million.
These included violations of procurement rules, missing supporting documents for payments, and delays or stoppages in projects.
