Auditor-General slams MPs for sleeping on the job as audits pile

Auditor General Nancy Gathungu. (Elvis Ogina, Standard)

The country’s public spending watchdog has put Parliament on the spot, accusing it of failing in its oversight duties by ignoring dozens of critical audit reports.

This, it notes, leaves billions of shillings in public funds unprotected and recommendations unenforced.

In her newly published annual report for 2024/2025, Auditor-General Nancy Gathungu reveals a stark disconnect between what she sees as her office’s exhaustive scrutiny of public agencies and corresponding legislative action from Parliament, as the law guides. 

She says despite submitting 2,746 financial audit reports and 63 performance audit reports to Parliament since 2012, only two performance audits have ever been discussed by the lawmakers.

The “delay by Parliament to discuss performance audit reports” is listed as another major challenge in the report.  These reports examine the efficiency and effectiveness of government programmes in sectors like health, education, and disaster response. 

Gathungu argues that their recommendations, if implemented, “would address some of the challenges the country experiences.” “Despite submitting 63 Performance Audit Reports (PAR) to Parliament since 2012, only two reports have been discussed by Parliament,” says Gathungu. 

The problem extends beyond discussion to enforcement.  “We continue to engage Parliament to prioritise discussion of Performance Audit reports because they touch on various critical sectors and provide recommendations which, if implemented, will mitigate against some of the current issues or challenges we are experiencing as a country,” she says. 

The report tracks the implementation of parliamentary committees’ own recommendations based on audit findings. 

A follow-up of one committee’s report showed a dismal 21 per cent implementation rate, while another stood at only 25 per cent. 

“Follow-up of the FY2020/2021 Public Accounts Committee Report and 24th Public Investments Committee Report reflected that only 21 per cent and 25 per cent respectively, of the recommendations made by Parliament were implemented,” says Gathungu.  This “significantly hampered our resolve to provide audit services that impact on lives and livelihoods of the citizenry,” Gathungu says in her report. 

“In light of this, we have submitted recommendations to Parliament for review of the Public Finance Management Act, 2012, to make implementation of audit recommendations mandatory for all public entities,” she adds. 

FCPA Nancy Gathungu, the Auditor-General, heads an independent office established by the constitution as the “people’s watchman.” 

Her mandate is to ensure accountability across all arms of government and any entity using public funds. 

Public sector accountability

The Auditor-General takes her reports to Parliament because Parliament is the supreme oversight body representing the people. 

As stated in her report, the OAG’s work provides “credible and independent insights on public sector accountability” to enable legislators to perform their constitutional oversight role.  

Parliament, through its committees like the Public Accounts Committee (PAC) and the Public Investments Committee (PIC), is empowered to examine these reports, question accounting officers, and make recommendations for corrective action, recovery of funds, or improved governance.

Upon tabling in Parliament, the reports are referred to the relevant oversight committees. These committees are expected to scrutinise the findings, hold public hearings, and adopt reports with specific recommendations for government entities to implement. 

The Auditor-General’s office then tracks and reports back to Parliament on the implementation status of those recommendations.

However, as the report highlights, this cycle is often broken: “only 21 per cent and 25 per cent respectively, of the recommendations made by Parliament were implemented,” and a significant backlog of performance audit reports awaits parliamentary debate, undermining the entire accountability framework.

However, the watchdog says it is also struggling to bark effectively, let alone bite, due to chronic underfunding and an overwhelming workload. The office says it faced a budget shortfall of Sh1.8 billion this year, receiving Sh8.2 billion against a requested Sh10 billion. 

This chronic underfunding, Gathungu notes, comes amid an expanding audit scope and growing public demand for accountability.

“Over time, an increase in requests for special audits from various stakeholders, combined with an expanded audit scope, has put a strain on our limited resources, calling for urgent enhanced funding,” the report notes.

To break the cycle of ignored audits, Gathungu is seeking fundamental reforms. Her office has submitted recommendations to Parliament to amend the Public Finance Management Act to make the implementation of audit recommendations mandatory for all public entities.

Parliament itself has previously recommended that the Auditor-General’s funding be set at 0.5 per cent of the national government’s audited revenue to ensure its independence and capability. 

“Parliament, aware of our need for additional resources, recommended that the funding for the Office be based on a formula of one-half per cent (0.5 per cent) of the latest audited and approved revenue figures of the National Government. This would enhance our resourcing and lead to improved results,” says the Auditor General. 

“We continue to engage with Parliament and the National Treasury for adequate funding to enable us to effectively execute our constitutional mandate.”