Audit exposes Sh601 million mismanagement in political parties

A recent audit has revealed that nearly 50 political parties failed to properly account for Sh601.93 million disbursed from the State Fund.

Auditor General Nancy Gathungu warned that the parties submitted little or no documentation to justify how the money was spent.

The report shows that Sh275.9 million of the funds involved unsupported balances across 16 parties, while Sh325.9 million was linked to cash management irregularities in 45 parties.

"The audit for the 2023/2024 financial year has identified several systemic issues affecting Political Parties. The issues include inaccuracies in financial reporting, lack of supporting documentation and weak internal controls. Additional concerns include poor governance practices, non-compliance with regulatory requirements, and limited assurance of value-for-money in the use of public funds," reads the report.

Ten political parties also failed to meet the Public Sector Accounting Standards Board (PSASB) reporting requirements.

The audit noted problems such as incomplete disclosures, incorrect comparative information, presentation errors, and missing Strategic and Performance Reporting.

Parties cited include United Progressive Alliance, Kenya Social Congress, Maendeleo Democratic Party, Ubuntu People’s Forum, United Democratic Movement, Kenya National Congress, National Ordinary People Empowerment Union, People’s Empowerment Party, Green Thinking Action Party and Safina Party.

Unsupported balances were largely attributed to undocumented member contributions, unverified cash and cash equivalents, borrowings, prior year adjustments, and missing fixed asset documentation.

Among the parties with the largest gaps, the Kenya African National Union (KANU) topped the list with unsupported balances of Sh212,743,031, including Sh37,352,734 in trade payables and Sh175,390,297 in loans without supporting schedules.

Narc-Kenya recorded Sh27,746,652 in unsupported balances, while Wiper Democratic Movement had Sh14,032,082 unaccounted for due to prior year adjustments lacking reconciliation.

The Sh325.9 million linked to 45 parties also raised questions about how the funds were handled. For instance, the Jubilee Party had unexplained cash and cash equivalents of Sh6,976,356 from several parties.

The audit underscores persistent weaknesses in financial management, governance, and reporting among political parties, signalling a need for tighter oversight and accountability in the handling of public funds.

Other Topics To Read

• Headlines
• political parties
• Nancy Gathungu
• audit
• Mismanagement of funds
• Audit exposes Sh601 million mismanagement in political parties
• Politics