Gathungu flags discrepancies in spending of Sh28.7 billion for cash transfer programmes

Billions of shillings meant for vulnerable Kenyans may have been mismanaged, with a new audit report revealing shocking irregularities in cash transfer programmes, including overpayments and questionable beneficiary records.

Auditor-General Nancy Gathungu has flagged multiple discrepancies in the expenditure of Sh28.7 billion allocated to various government cash transfer programmes, raising concerns over financial mismanagement and lack of accountability.

In her report for the financial year 2023/2024, Gathungu highlighted several irregularities within the State Department for Social Protection and Senior Citizen Affairs. These include the overpayment of beneficiaries, caregivers supporting multiple households, repeat unsuccessful credit transactions and inadequate data validation controls.

“A number of unsatisfactory issues were flagged, including overpayments, unverified beneficiary data, and poor controls over financial transactions,” reads the report.

The audit revealed that 919 beneficiaries were overpaid a total of Sh896,500 in February 2024. Under the Consolidated Cash Transfer Programme, each beneficiary is entitled to Sh2,000 per month, but the report indicates that payments exceeded this amount.

Additionally, an analysis of the Older Persons Cash Transfer Programme found that 15,243 caregivers were supporting more than one household, violating the department’s operations manual. The rules explicitly state that a caregiver should represent only one household.

Ineffective controls

The report also uncovered that 1,719 beneficiaries had more than three failed credit transactions, amounting to Sh34,799,500, due to ineffective controls in the financial disbursement system.

Further investigations into the persons with severe disabilities (PSD) and orphans and vulnerable children (OVC) payrolls found that 646 orphans and 3,812 vulnerable children were registered using invalid national identification numbers.

“In the circumstances, the effectiveness of data validation controls over beneficiary enrolment could not be confirmed,” reads the report.

The report also reveals that multiple parcels of land designated for children’s remand homes, rehabilitation centres and rescue centres lack proper ownership documents and have been encroached upon.

Among the affected facilities is the Getathuru National Reception, Assessment and Classification Centre in Nairobi’s Westlands sub-county.

The 17-hectare property was partially occupied by a Chinese construction company during the construction of the Redhill-Waiyaki Way bypass.

However, the report indicates that the company built a permanent double perimeter wall and continued occupying the land three years after the project was completed. No lease agreement was provided for the occupation.

Similarly, at Wamumu Rehabilitation School, approximately 40.5 hectares were allocated to the Kenya Medical Research Institute (KEMRI), and another 26 hectares are in the process of being allocated to a local group. The report states that no approval documents were provided for these allocations.

Other Topics To Read

• National
• auditor general
• Nancy Gathungu
• cash transfer programmes
• financial mismanagement
• persons with severe disabilities
• rphans and vulnerable children
• Gathungu flags discrepancies in spending of Sh28.7 billion for cash transfer programmes
• Headlines

The Othaya Rehabilitation School’s 9.8-hectare land was found to be unfenced and lacking ownership documents.

In Murang’a, the Children’s Remand Home’s 0.9-hectare plot had been encroached upon by private developers who had constructed permanent buildings on the land. Meanwhile, the Thika Rescue Centre’s 10.1-hectare property remains partially unfenced.

Gathungu highlighted the need for urgent reforms in the administration of government-funded social protection programmes. She called for enhanced data verification processes, stringent financial controls and legal action to recover encroached public land.

The findings are expected to prompt a parliamentary probe into the mismanagement of funds and land meant for vulnerable groups.