Kericho Governor Paul Chepkwony before the Senate’s County Public Accounts and Investment Committee (CPAIC) on July 27, 2021. [David Njaaga, Standard]

Kericho County Government could have lost Sh71 million in questionable insurance services.

Payment records indicate Governor Paul Chepkwony’s administration awarded an insurance broker a contract to provide general insurance brokerage services at a cost of Sh22.9 million.

Analysis of the Integrated Financial Management System (IFMIS) records indicate that a further Sh48 million was paid to the broker for services provided under other covers.

The county could also not provide details of the nature and value of properties insured as respective records were not provided for audit.

Kericho Governor Paul Chepkwony before the Senate’s CPAIC, July 27, 2021. [David Njaaga, Standard]

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According to the 2018/19 audit report, the performance bond for the respective tender had expired on March 4, 2018, yet the insurance contract against which the bond was issued was to end in December 2018.

But appearing before Senate County Public Accounts and Investments Committee yesterday, the governor defended his administration, stating that the information in IFMIS related to two insurance covers – one for motor vehicles and the other for general insurance.

Policy documents

He said the information had since been provided to auditors.

Prof Chepkwony further provided details of respective insurance covers that included properties assured, amount paid as well as samples of policy documents.

Kericho Governor Paul Chepkwony before the Senate’s Committee on Devolution and Intergovernmental Relations, March 2021. [David Njaaga, Standard]

At the same time, the county boss blamed heavy rainfall on the administration’s failure to implement road projects worth Sh194 million.

“These projects were implemented in the financial year 2019/2020 and some were in various stages of implementation in the subsequent financial year,” said the governor when he appeared before the committee chaired by Migori Senator Ochillo Ayacko.

The county government was further on the spot for failing to collect its own source revenue amounting to Sh20 million from house rent fees as well as land and property rates. The amount included Sh12 million house rent fees and Sh8 million due to land and property rates.

Ayacko described the amount as “monumental” and would have benefitted residents if the county collected it.