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How Nairobi Fleeced Billions – Edward Ouko

Kenya Auditor General, Edward Ouko has revealed massive theft and plunders at the Nairobi county amounting to billions of shilling in unaccounted funds.

The 2016-17 report was tabled yesterday by Senate Majority leader Kipchumba Murkomen.

Ouko pointed to a porous revenue collection system at City Hall, where only 22 per cent of the revenue collected made it to the bank. The rest was allegedly spent at the source.

For instance, the county collected Sh10,933,201,475 as per the county’s own generated receipts and only Sh2,420,840,729 was banked in the County Revenue Fund Account.

“The balance of Sh8,512,360,746 was spent at the source contrary to Section 109 of the Public Finance and Management Act, 2017,” Ouko said.

Nairobi, the report says, acquired assets of Sh1,762,711,478 during the year under review but the county could only support acquisition amounting to Sh61,174,422 as paid.

“There was no documentary evidence of the balance of Sh1,701,537,056 as having been paid. The accuracy of the expenditures totalling Sh1,762,711,478 on an acquisition of assets cannot, therefore, be confirmed,” Ouko’s report says.

The report further says the county did not disburse more than Sh290 million capitation for free maternity funds to four hospitals, despite receiving free maternity reimbursement from the Health ministry.

Pumwani Maternity Hospital received only Sh173,851,907 out of the Sh342,305,100 it was entitled to. This left an undisbursed balance of Sh168,453,193.

Mama Lucy Kibaki County Hospital received nothing during that year. It was supposed to receive cumulative reimbursement of Sh17,340,000.

Another county health facility – Dagoretti SubDistrict Hospital was expecting to receive a reimbursement of Sh4,590,000 but was only got Sh1,280,916. This resulted in a shortfall of Sh3,309,084.

“Mbagathi Hospital had 4,281 deliveries during the year and the total amount to be reimbursed for the deliveries for the year under review was Sh21,405,000. However, no reimbursement was made to the hospital during the year.”

Most of the non-pharmaceutical items at Mbagathi worth Sh3,055,944 were almost expiring.

In what exposed the extent of the rot in Kenya’s largest county’s health system, the county spent Sh30,369,141 to buy binding certificates, fixing of curtain blinds, rheumatoid factor test kits, staff uniforms, cleaning materials and rehabilitation of Plains View dispensary. None of the supplies was delivered and procurement was allegedly not done through Ifmis as required by law.

Ouko also questioned how parts of Komarock ward offices and Komarock playing fields, both in Embakasi Central, Karen Health Centre andMatuini Hospital found themselves in private hands.

He said a good chunk of City Park has been encroached by private developers and business enterprises.

Most encroachment, he said, happened around Eden Rehabilitation Centre, Joseph Murumba Memorial Park and Bowling Green Safari.


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