Public officers to personally repay lost funds in anti-graft crackdown

In a bid to curb mismanagement and corruption in government institutions, the government has ordered public officials linked to the loss of funds to personally reimburse the amounts.

Chief of Staff and Head of Public Service Felix Koskei has directed ministries, state agencies, and independent bodies to enforce surcharges on officers responsible for mismanagement, fraud, or unauthorised spending.

The directive comes amid growing concerns over financial mismanagement flagged in the Auditor General’s reports, prompting President William Ruto to call for stricter accountability measures.

“The President has flagged the urgent need for prudent, responsible, and effective management of public resources,” Koskei said in the directive.

The enforcement of financial surcharges was approved by the Cabinet in its meeting on September 17, 2024, in line with Articles 226(5), 201(d), and 232(b) of the Constitution, as well as the Public Finance Management Act, 2012.

The directive requires all accounting officers across government institutions to recover funds lost due to negligence, fraud, or unlawful expenditure. Those who fail to adhere to financial regulations, permit unauthorised spending, or neglect to settle approved bills despite available funds will face financial penalties.

In addition to repaying the lost funds, Koskei said implicated officials will be subjected to disciplinary action and potential investigations by relevant statutory bodies.

Koskei emphasised that this move is part of the Public Service Zero Fault Audit Status Campaign, which aims to instil fiscal discipline across all government entities.

He stressed the need for decisive action, stating, “Accounting officers must act decisively to eliminate financial leakages and uphold integrity in public service.”

Government institutions have also been instructed to surcharge officials responsible for mismanagement, take disciplinary action against those cited in audit reports, refer serious cases to investigative and prosecutorial agencies, develop structured recovery procedures, and conduct financial accountability training for staff.

The directive aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA), which seeks to enhance fiscal discipline.

To ensure compliance, all accounting officers have been instructed to submit reports detailing actions taken by April 14, 2025.

However, before any surcharge is imposed, Koskei said due process will be followed to ensure fairness.

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