Corruption and Mismanagement Uncovered in Nakuru County’s Financial Practices
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Nakuru County, a key economic player in Kenya, finds itself mired in scandal over widespread financial mismanagement and the misuse of public funds.
The latest fiscal report for the 2023/2024 financial year lays bare shocking revelations of excessive spending, unaccounted-for domestic and foreign travel, and chronic underperformance in vital development projects. These findings raise critical questions about the county’s governance and leadership priorities.
Bloated Expenditure on Foreign and Domestic Travel
One of the most glaring issues revealed in the report is Nakuru County’s penchant for travel-related expenses, both international and domestic.
While the county spent Ksh 102.89 million on foreign travel, the expenditure on domestic travel has also been staggering ( Nakuru County spent Kshs. 544.13 million on domestic travel during the financial year 2023/24). Over Ksh 89 million was allocated for local trips, mostly by county executives and assembly members under the guise of “benchmarking” and “capacity building” missions.
These trips, allegedly meant to gather insights from other counties or regions, have been widely criticized as unnecessary and ineffective.
The bulk of the domestic travel expenses involved trips to Nairobi, Mombasa, and Kisumu, with assembly members reportedly spending entire weeks in luxury hotels, attending dubious seminars and workshops. The report highlights that some of these trips were made multiple times for the same projects, with no visible improvements or impact back in Nakuru.
For instance, a group of 12 officials spent Ksh 3.5 million on a week-long benchmarking trip to Mombasa, allegedly to study waste management strategies. Yet, Nakuru still struggles with waste collection and management, raising doubts about the authenticity and effectiveness of such trips.
Unjustified Travel Budgets: A Tool for Self-Enrichment
Excessive domestic travel by county officials is not a new issue, but the report emphasizes how it has evolved into a tool for enriching the political elite at the expense of the people.
The allocation of millions for local travel—often for activities that could be handled within the county or virtually—points to a systemic abuse of public funds.
Notably, the county executive’s department for public health spent over Ksh 15 million on travel to “assess” various health centers across the country.
Despite this, Nakuru’s health infrastructure remains critically underdeveloped, and the funds could have been better utilized to improve local healthcare facilities.
One concerning revelation is that a portion of the domestic travel budget is paid out as per diem allowances.
This practice has allegedly become a lucrative avenue for officials to make quick, untaxed money. The lack of clear records detailing the outcomes of these trips further deepens suspicions that domestic travel has become a cash cow for county employees.
Budget Misappropriation and Underperformance in Key Sectors
While Nakuru County hemorrhages millions in domestic and international travel, the report shows underperformance in critical development projects. For example, the Afraha Stadium upgrade, allocated Ksh 380 million, saw only Ksh 165 million utilized by the end of the financial year.
Similarly, the fertilizer subsidy program, which received Ksh 234 million, had only disbursed Ksh 176 million, sparking concerns about either inefficiency or possible misallocation of funds.
The report also reveals the county’s dismal absorption rate for development funds. Nakuru only managed to spend 46% of its development budget, with Ksh 4.45 billion utilized out of the allocated Ksh 9.68 billion.
This shortfall highlights severe administrative failures, as billions meant for public projects languish unspent, while county officials indulge in lavish domestic and international trips.
Pending Bills and Manual Payroll Irregularities
One of the most significant issues unearthed by the report is the county’s pending bills, which totaled Ksh 1.10 billion as of June 2024.
This figure includes Ksh 387.97 million from recurrent expenditure and Ksh 181.49 million from development projects.
Additionally, the county continues to rely on a manual payroll system, despite spending Ksh 6.17 billion on employee compensation.
Manual payroll systems, which accounted for Ksh 582.61 million in 2023/2024, are notoriously susceptible to fraud, including ghost workers and inflated wages.
This is particularly concerning as the county faces financial instability, yet continues to operate inefficiently.
Misuse of Commercial Bank Accounts in Violation of Regulations
The misuse of commercial bank accounts by Nakuru County also stands out as a key violation of the Public Finance Management (PFM) Act. The law requires that all county funds be managed through accounts at the Central Bank of Kenya. However, Nakuru County operates 12 accounts at commercial banks, raising questions about transparency and opening the door for potential financial misappropriation.
Calls for Accountability and Reform
Public outrage over these revelations is intensifying. Nakuru residents are demanding immediate reforms to curb the reckless spending on travel and ensure that public funds are redirected to vital development projects. Civil society organizations and local leaders have called for investigations into the county’s financial practices, particularly the travel expenditures, and an audit of the county’s payroll system.
Moreover, the County Treasury has been urged to prioritize the settlement of pending bills, enhance financial transparency, and submit timely financial reports to the Controller of Budget. There is also a growing call for austerity measures to address the county’s underperformance in local revenue collection, which stood at only 81% of the annual target for the 2023/2024 financial year.
Only time will tell whether the county government will rise to the occasion and deliver the long-overdue changes Nakuru desperately needs.
With a knack for captivating storytelling, Amos Lumbasi has a talent for crafting narratives that resonate with readers. He combines meticulous research with a captivating writing style to create articles that are both informative and enjoyable to read.
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