Auditor General seeks tougher penalties for accounting officers
The move comes amid a government directive requiring officials to take responsibility for the loss of public resources.
Auditor General Nancy Gathungu has called for amendments to the law to introduce sanctions against accounting officers who fail to implement audit and parliamentary recommendations.
The move comes amid a government directive requiring officials to take responsibility for the loss of public resources.
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In her submissions to the Liaison Committee on the 2025 Budget Policy Statement, Gathungu noted that the lack of action on audit findings has contributed to fiscal indiscipline in government institutions.
She stated that her office has consistently provided audit recommendations aimed at enhancing accountability and efficient resource management.
“However, these recommendations are not always implemented. As a result, many audit queries recur due to the absence of enforcement mechanisms, administrative sanctions, or the reluctance to apply the existing legal provisions,” the committee quoted Gathungu as saying.
The committee, chaired by National Assembly Deputy Speaker and Uasin Gishu Woman Representative Gladys Boss, emphasized the need to amend the Public Finance Management Act to enforce compliance with audit and parliamentary recommendations.
The Auditor General’s latest report on government ministries, departments, and agencies for the 2023-2024 financial year revealed multiple cases of unaccounted expenditures.
One example cited was the signing of contracts worth Sh49 billion with private developers to construct affordable housing projects on land without title deeds.
On February 11, Chief of Staff and Head of Public Service Felix Koskei issued a circular outlining measures to hold public officers accountable for misuse of funds. He stated that the Cabinet had approved surcharges against accounting officers whose actions or omissions led to financial losses.
“The above decision by Cabinet is supported by Section 74 of the Public Finance Management Act, 2012, which requires accounting officers to take disciplinary action on public officers involved in improper conduct,” Koskei said.
Under the directive, accounting officers may face penalties for failing to comply with financial regulations, making unlawful expenditures, or delaying payments for approved bills despite available funds. They are also required to take disciplinary action against staff found responsible for financial losses.
“All accounting officers are required to provide a report outlining the action(s) taken pursuant to this directive by April 14, 2025,” Koskei added.
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