Homa Bay Senator Moses Kajwang'.
The Senate has raised concerns about the misuse of public funds in county assemblies, saying it is as a result of weaknesses in oversight and financial management.
The revelation is contained in a report by the County Public Accounts Committee, which has since been adopted by the House.
The report by the team chaired by Homa Bay Senator Moses Kajwang is based on the Auditor-General’s findings for the 2024/25 financial year.
The county assemblies interrogated were Marsabit, Wajir, Meru, Siaya, Busia, Murang’a, Baringo, Kakamega, Makueni, Nyeri, Tana River, Nyamira and Kericho.
According to the report, a major concern is persistent failure by the assemblies to act on audit recommendations, creating cycles of irregularities.
It says non-compliance undermines accountability and weakens oversight institutions established under the Constitution.
The report also highlights irregular expenditure, weak governance structures and poor asset management as drivers of mismanagement.
Many assemblies lack effective audit teams and robust internal controls.
“These weaknesses expose public resources to wastage and misappropriation,” the report says, even as it criticises accounting officers for failing to comply with legal obligations under the Public Finance Management Act.
To address the challenges, the committee recommended strict enforcement of financial regulations and the adoption of automated systems.
It also directed that unresolved audit matters be tracked to ensure oversight.
The National Treasury Building in Nairobi.
The Senators directed the National Treasury to comply with its constitutional and statutory mandate by ensuring the timely and predictable release of funds to devolved governments, in line with the disbursement schedules approved by the House.
According to Article 219 of the Constitution, a county’s share of revenue raised by the national government must be transferred to the devolved government’s treasury without delay and deductions.
Exceptions to this transfer only apply where payments are lawfully stopped under Article 225 of the Constitution.
The committee said a common external factor affecting county assemblies is the late disbursement of funds by the National Treasury.
“This has led to budget underfunding, under-utilisation of development funds and the accumulation of pending bills, thereby affecting public services and cash flow,” the committee said in its report to the House.
The County Assembly of Wajir, for instance, received Sh98 million after the close of the financial year on June 30, 2025.
The Auditor-General reported that Sh28.2 million related to delayed Exchequer disbursements, while the balance pertained to ongoing projects for which contractors were paid only amounts equivalent to certified completed works.
The assembly leadership indicated that the under-utilisation of Sh1.3 million represented money that was returned to the County Revenue Fund.
The assembly experienced underfunding of Sh171.6 million, representing 13 per cent of its total allocation against the final receipts budget.
“Of the shortfall, Sh28.2 million was attributable to delayed Exchequer disbursements, which hindered timely budget absorption and project implementation, violating the Public Finance Management Act, which mandates disbursement not later than the 15th day from the commencement of every quarter,” the Senate team noted.
The committee told the county executive to put in place measures to enhance own-source revenue in order to address shortfalls.
The county assembly was directed to exercise its powers as outlined in Article 201 of the Constitution to ensure budgets are realistic and reflect the aspirations of the people through effective public participation.
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