Women Enterprise Fund locks horns with Auditor General over impropriety report
The audit report by Auditor General Nancy Gathungu had exposed alarming financial irregularities at the Women Enterprise Fund, totalling Sh1.4 billion.
The Office of the Auditor General and The Women Enterprise Fund are in disagreement over a fresh report by the agency linking the Fund to impropriety of billions of shillings.
The audit report by Auditor General Nancy Gathungu had exposed alarming financial irregularities at the Women Enterprise Fund, totalling Sh1.4 billion.
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The report, released for the financial year ending June 30, 2024, paints a disturbing picture of poor financial management, with large sums of money unaccounted for, unauthorised transactions, and unexplained variances in the fund’s records.
However, the Women Enterprise Fund dismissed as unfounded and malicious reports linking the organisation to financial impropriety. The Women Enterprise Fund CEO Racheal Musyoki and the Chairperson of the Fund’s Advisory Board Jane Lang’at termed the allegations as entirely baseless and misleading.
The Eastleigh Voice learnt that Women Enterprise is planning to have the claims addressed before the Parliamentary Special Funds Accounts Committee.
“In line with our commitment to transparency and accountability, Women Enterprise Fund will appear before the Parliamentary Special Funds Accounts Committee to respond to the Auditor General's queries as part of the public audit procedure. We are dedicated to protecting public funds and ensuring that they benefit the intended recipients’ women,” reads the statement by the Fund.
“The Fund has been transparent and focused on empowering women across Kenya and operates with the highest standards of accountability, ensuring that resources are utilized effectively to support women's economic empowerment. The Fund, being a Semi-Autonomous Government Agency, operates autonomously from the State Department for Gender and Affirmative Action. PS Anne Wang'ombe has consistently demonstrated exceptional leadership and dedication in her role as the administrator of the Fund.”
The Fund explains that in the financial year under review, it never experienced inefficiency in its management or impropriety, despite the transition in its executive leadership, including the appointment of Racheal Musyoki as the new Chief Executive Officer.
“The Fund’s ability to maintain steady disbursements of Sh27.9 billion and recoveries amid leadership changes underscores its strong institutional framework and commitment to its mandate. This stability has reinforced confidence among stakeholders, including government agencies, development partners, and women’s business groups.”
Currently, the Fund’s portfolio supports 150,000 women's groups and individual entrepreneurs across various sectors, including agriculture, trade, and manufacturing.
“In the last financial year, the WEF disbursed loans to over 18,955 women groups and individual businesses, enabling them to expand operations, create jobs and improve livelihoods. By maintaining a strong portfolio and implementing targeted programs, the Women Enterprise Fund continues to prove its relevance as a key driver of women’s economic empowerment in Kenya,” added the Fund.
In the Auditor General’s Report that has raised the storm, serious concerns about the fund’s ability to meet its financial obligations and sustain its operations in the future. One of the most significant findings in the audit is the Sh212 million that passed through unauthorised mobile pay bills.
Perhaps most concerning in the report is the growing financial instability at the Women Enterprise Fund. According to the audit, the fund reported losses totalling Sh330 million for the year under review, a steep decline in profitability from Sh220 million the previous year.
Last month, the government announced plans to merge the Uwezo Fund, Youth Fund, and Women Enterprise Fund into a single entity, the Biashara Fund, to streamline access to financing for small businesses and eliminate loopholes that could lead to inefficiencies.
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