Twelve years into devolution, 11 county governments continue to spend millions of shillings on rent for governors' and deputy governors' residences despite clear directives from the Salaries and Remuneration Commission (SRC) to prioritise constructing official homes.
The directive aimed to curb unnecessary expenditure yet according to an audit by Auditor-General Nancy Gathungu, several counties have ignored this guidance leading to substantial financial losses.
SRC had initially instructed counties to ensure the construction of these residences to avoid excessive rental costs.
In a May 20, 2019 circular, the commission gave county governments until June 30, 2022 to stop paying rent for governors, their deputies and county assembly speakers.
The directive also stipulated that the houses be built on public land with specific acreage limits—two acres for governors and one acre for deputy governors and county assembly speakers.
Additionally, the SRC set cost ceilings at Sh45 million for governors' residences, Sh40 million for deputies, and Sh35 million for county speakers.
But according to Ms Gathungu, several counties are yet to adhere to the directives by SRC and have ended up spending millions on rent every month.
In the latest audit report for the financial year 2023/2024, some governors and their deputies continue to earn housing allowances for their residences.
In other counties, the expenditure on the construction of official residences has exceeded the ceiling set by SRC, while others have stalled despite millions of taxpayers' money having beeen pumped into their construction.
The audit shows in Kericho, the county has yet to allocate any funds for constructing official residences for its governor and deputy meaning the county continues to incur rent expenses in violation of SRC’s directive.
A review of the development budget for the financial years 2019/2020,2020/2021,2021/2022,2022/2023 and 2023/2024, revealed that there were no budgetary allocations for the construction of the residences. This means the county continues to incur expenditure on house rent for the Governor and his deputy contrary to the SRC circular.
In Kwale, the governor’s residence project initially budgeted at Sh149 million which is well above the SRC cap remains incomplete.
While the county government insists the contract was awarded before SRC’s directive, the project has stalled with the contractor abandoning the site over unpaid dues despite receiving Sh119.78 million.
By August 2023, the contractor had lodged a claim for an additional Sh61.9 million yet work had not resumed according to the audit. In the financial year 2023/2024, a total of Sh11 million was allocated, though the contractor was not on site.
In Tana River County, the construction of the deputy governor's residence is still incomplete since April 14, 2023 when it started. The contract was awarded to a local contractor at a total of Sh39.8million, but had abandoned the site by October 2,2024.
In Lamu, the construction of the governor's residence at a cost of Sh44 million, started on March 31,2021 is still incomplete, four years later.
In Embu, the auditor noted that the construction of the governor's official residence has stalled.
A contract for the construction of the governor's residence, she said, was awarded on March 8, 2021, at a contract sum of Sh49.7 million. The contract period was 72 weeks with an expected completion date of September 8, 2022.
“According to the Salaries and Remuneration Commission Circular Ref. No. SRC/TS/COG/6/61/48 VOL.II (64) of 20 May 2019, the County Executive was required to allocate funds and prioritise the construction of houses for the Governor and Deputy Governor on public land,” reads the report in part.
“However, at the time of audit in September 2024, the Governor's official residence was incomplete and the last certificate of work done revealed that the project was 55 per cent complete. The contractor was not on site,” added the report.
In Turkana, the auditor said the contract for the construction of the governor's residence was awarded in the financial year 2013/2014.
The contract was, however, terminated in the financial year 2014/2015, when the contractor had been paid Sh120.2 million.
The audit revealed that a new contract was awarded on April 24, 2019, at a sum of Sh90.5 million for 52 weeks ending October 31, 2021.
The Auditor General noted that the expenditure incurred by the Turkana County Government to date exceeds the limit of Sh45 million limit SRC for a Governor's residence.
Further, purchase orders amounting to Sh14.5 million the audit revealed were issued after the expiry of the contract period and the performance bond.
“Project inspection in August 2024 revealed that the project was incomplete and the contractor was on site, but no works were ongoing. The Governor and his Deputy irregularly earned Sh2.2 million as housing allowance, after the period for such allowance being paid of 30 June 2022 had passed,” reads the report.
The construction for Bomet Governor's residence the report revealed had stalled. The county, it was noted, had entered into a contract with a local contractor for the construction of the house at a sum of Sh78 million.
The contract period was two and a half years starting January 31, 2019, when the contractor took possession of the project site with a completion date of June 30, 2021.
The contract period was extended to June 30, 2022, with the contractor on December 14, 2022, requesting another extension of the contract period from December 30, 2022, to June 30, 2023, but the approval of the second extension was not supported.
The audit revealed that physical verification of the project in September 2024 was incomplete and the contractor was not on site.
In Samburu County, the report revealed that on January 17, 2022, the contract for the construction of the Governor's official residence in Samburu was awarded at a contract sum of Sh87.5 million which was Sh42.5 million above the ceiling of Sh45 million set by SRC.
“As at June 30,2024, an amount of Sh60 million had been paid to the contractor for the works. Inspection in September 2024 revealed that the project had stalled,” further reads the report.
The report revealed that the county government contracted a construction company to construct the Governor's office but the contract was terminated.
The report revealed that the contractor was paid an amount of Sh10.9 million during the year under review. Further review of records revealed that after the termination of the initial contract, the county government entered into the second contract on September 8, 2021, at a contract sum of Sh45,847,895.
A physical inspection conducted revealed that the contractor was not on site and the project was incomplete.
Baringo County Executive, the audit revealed, incurred an expenditure amounting to Sh1,080,000 on rent for the residence of the Deputy Governor.
In addition, a budgetary allocation of Sh15 million for the construction of the Governor's and Deputy Governor's residences was reallocated in the second supplementary budget.
In Vihiga, the audit noted a delay in the construction of the Governor's and the Deputy Governor's residence despite a Sh42.9 million payment.
In Nyandarua, the county has constructed the Governor's residence on a 3.4acres parcel of land in total disregard of the SRC directive that it should be built on a two acre parcel of land.
