Nyamira, Kajiado counties risk losing donor funding over questionable expenditure

Nyamira Governor Amos Nyaribo says no money was lost and evidence of expenditures had been presented. [File, Standard] .

Nyamira County Government is staring at being locked out of donor funding after the National Treasury suspended two World Bank-financed projects following unexplained irregularities in the handling of around Sh22 million.

The cash is part of hundreds of millions extended to the devolved government as conditional grants to aid in the implementation of development works in the Departments of Land, Housing, and Physical Planning, as well as economic empowerment in the agriculture sector.

The monies were financed by the National Exchequer in collaboration with the International Development Association and the French Development Agency.

A letter sent to the county government by Treasury Cabinet Secretary John Mbadi, dated December 15, 2025 and copied to the Treasury Principal Secretary and the Council of Governors’ CEO Mary Mwiti, stated that the suspension was meant to last until the county fully accounts for close to Sh22 million that was said to have been irregularly withdrawn or used without explanation.

“During recent World Bank missions to the aforementioned county, significant financial management irregularities were identified. These included unauthorised use of resources, unsupported expenditures, non-delivered activities and other issues that raise concerns about the overall accountability and governance of project resources,” the suspension letter that was sent to the county reads in part.

Mbadi’s letter followed another communication from the Housing Principal Secretary Charles Hinga, to the Ethics and Anti-Corruption Commission, requesting investigations into what he had pointed out as possible misuse of project accounts.

The projects that will be affected by the suspension are the ongoing Kenya Informal Settlement Improvement Project (KISIP), which is being funded to the tune of Sh250 million, and the National Agricultural Value Chain Development Project (NAVCDP) that attracted Sh300 million funding.

In the letter that was sent to EACC Chief Executive Officer Abdi Ahmed Mohamed, Nyamira County was singled out alongside Kajiado County, where such monies were handled in a questionable manner.

In Kajiado, a bank statement that was provided for audit had some transaction details missing from the bank transaction records for the period between January 1 and March 31, 2025, raising concerns over possible manipulation.

In Nyamira, the KISIP projects are being implemented at Keroka Municipality.

Projects being undertaken at the municipality include the construction of modern market sheds, the erection of an ultra-modern market, installation of security lights at the market, construction of ring roads within the town, and installation and improvement of sanitation facilities.

Projects completed include construction of ring roads in the market area and installation of security and street lights, while the second phase of construction of market stalls and a market building are 80 per cent complete, according to Lands, Housing and Physical Planning County Executive Stephen Oboso.

But Nyamira Governor Amos Nyaribo said no money was lost and the only problem, which had already been resolved with the internal audit mechanisms, was evidence of expenditures that had been flagged.

“It is not factual that we have failed to respond to the audit queries, but rather, the expected responses had already been submitted to the Auditor General and by the time the communication about the suspension was being effected to the county, the Auditor General was aware. We have accounted for the money to the last penny,” Governor Nyaribo said.

The County Chief noted that since the relevant offices had satisfactorily responded to the Auditor General, Treasury would be notified about the compliance to the audit and lift the suspension.

Mbadi, in his letter, had notified the county of possible consequences if the money in question was not satisfactorily accounted for.

Failure to fully account for the monies would also mean that the devolved government refunds all the project funds to the donors.

"We dealt with the audit issues, and now it remains with the Auditor General to notify Treasury to lift the suspension," Nyaribo said.

The governor argued that the irregularities that were pointed out were normal, especially the expenditure on operational costs of the donor projects.

It has since been reported that the monies in question were either withdrawn or transferred to cover operational costs of the donor projects with an intention of reconciling the accounts once the exchequer releases cash for county expenditures.

"Donor funds are meant for specific projects, and the county co-funds by meeting all operational costs. And if the county has a deficit in funding it's obligation, then such cross-transactions can be justified as a short-term measure that works for the interim, pending replenishing of the specific funds account," Nyaribo clarified.

Treasury is now threatening tougher measures in case the county fails to account for the funds.

"Failure to fully account for the monies would also mean that the devolved government refunds all the project monies to the funders," the letter stated.