Auditor General flags massive procurement violations across 32 counties
Procurement plans for the financial year were submitted late or not at all by many counties, contravening Regulation 8 of the Public Procurement and Asset Disposal Regulations.
A new audit report has uncovered widespread procurement rule violations and poor inclusivity practices across 32 counties, involving irregularities totalling over Sh10 billion in the 2023/2024 financial year.
The Auditor General’s report reveals that several counties failed to adhere to key procurement regulations, including awarding contracts without verifying supplier qualifications as required under the Public Procurement and Asset Disposal Regulations, 2020.
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This disregard for the rules risks engaging unqualified suppliers and undermines fairness in public spending.
“Review of the County Executives’ procurement records revealed that thirty-two (32) County Executives had various procurement irregularities amounting to Sh10,094,695,416,” the report states.
It further highlights the misuse of direct procurement methods, which bypass the required open tender process stipulated in Section 91 of the Public Procurement and Asset Disposal Act, 2015.
Nairobi City County led with Sh3.3 billion in irregularities, followed by Kericho County with Sh1.9 billion.
Other counties cited include Kakamega (Sh531.5 million), Nyandarua (Sh445.2 million), Kisii (Sh364.1 million), and Machakos (Sh292.4 million), among others.
Procurement plans for the financial year were submitted late or not at all by many counties, contravening Regulation 8 of the Public Procurement and Asset Disposal Regulations.
The report also notes that procurement exceeded approved budgets in some counties without supplementary budget approval, a breach of Section 67(1) of the Public Finance Management (County Governments) Regulations.
Several counties were found to have procured goods and services exceeding set financial thresholds without seeking necessary approval from the Public Procurement Regulatory Authority.
This violates Section 66(3) of the Public Procurement and Asset Disposal Act, which requires PPRA’s clearance for high-value procurements.
The audit further shows that youth, women, and persons with disabilities received less than 30 per cent of procurement contracts in many counties, against the minimum threshold set by Section 157(2) of the Act to promote inclusion.
Additionally, some counties failed to advertise procurement opportunities publicly, violating Section 63(1) that mandates transparency and fair competition.
The use of Request for Quotation beyond the allowed limit of Sh3 million was also flagged, as counties should use open tendering for higher-value purchases, according to Section 45(3)(b).
The report draws attention to avoidable expenses totalling Sh1.4 billion in 17 counties.
Meanwhile, 23 counties made irregular contributions amounting to Sh79.8 million to the Council of Governors (CoG), violating Section 37 of the Intergovernmental Relations Act, which states that operational costs for such bodies must be included in the national government budget.
Wasteful payments flagged include settlements for court cases triggered by county government actions and interest penalties due to failure to honour contracts on time. Counties affected by these costs include Narok (Sh756.1 million), Kisii (Sh88.4 million), Kajiado (Sh79.1 million), and Mombasa (Sh69.8 million), among others.
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