Auditor General Flags Irregular Procurement in Nairobi County, Raising Concerns Over Billions in Public Funds

The Auditor General’s report on Nairobi County’s tenders for the 2023-24 financial year has raised serious concerns regarding widespread procurement irregularities involving billions of shillings. Key highlights from the findings include:

1. Affordable Housing Projects: The county’s ambitious plan to construct 9,000 units in Bahati, 3,400 in Woodley, and others in Ziwani and Kariobangi North faced procurement challenges. The auditor flagged issues with confirming land ownership, value for money, and regularity for housing projects worth Sh31 billion.
2. Renovation and Construction Flaws: In Uhuru Estate, a renovation project worth Sh39.87 million was flagged due to insufficient budget allocation, incomplete work, and lack of a contract extension. Similar issues were found with road rehabilitation projects in Eastleigh and Industrial Area, with payments made without proper documentation, raising doubts about the value for money spent.
3. Irregular Procurement Processes: The county awarded contracts worth Sh1.88 billion for construction and civil works, but many lacked the required public advertisements or procurement records. This led to questions about the transparency and legitimacy of the tendering process.
4. Insurance Contracts: The county signed a new contract with the same insurance company for staff medical cover, despite having an existing one. Procurement records for both contracts were not provided for audit, preventing the Auditor General from confirming the value for money spent.
5. Consultancy and Event Management: The development of the County Tourism Policy for Sh5 million raised concerns due to the lack of tender advertisement, improper documentation, and failure to adhere to procurement timelines. Similarly, payments made for event management during the Nairobi City Festival were questioned due to a lack of justification for contracting third parties for services already offered by the Kenyatta International Conference Centre.
6. Legal Services: The county paid Sh483.8 million for legal services, but appointments were made without a competitive process. This, coupled with the assignment of multiple cases to a small group of advocates, further raised concerns about the transparency and fairness of the procurement process.
7. Garbage and Heavy Machinery Procurement: Irregularities were also noted in the procurement of garbage skips and machinery, with issues of overpayment and the non-delivery of ordered goods. The county paid Sh175 million for machinery hire, which resulted in an overpayment due to discrepancies in billing.

These findings underscore significant procurement flaws, highlighting a need for improved financial oversight and adherence to legal requirements in Nairobi County’s expenditure. The report calls for greater accountability and transparency in the management of public funds.