Auditor General reveals how billions are lost in counties through a web of hidden transactions

A shocking new report by the Auditor-General has exposed how 15 county governments in Kenya quietly misused billions of shillings meant to pay suppliers and contractors. According to the report, these counties cancelled over 15,000 approved payments worth Sh13.26 billion. The most worrying part is that the money was already approved in the government’s financial system but somehow disappeared through suspicious and untraceable transactions.

This has raised serious concerns about how public funds are being handled at the county level.

The Auditor-General, Nancy Gathungu, revealed that these cancellations were done without proper documentation. She explained that the money was redirected elsewhere, but there are no clear records to show where it went. As a result, thousands of genuine suppliers, most of them small businesses, were left unpaid. These are people who had delivered goods or completed services for county governments with the expectation of being paid on time.

Now, many of them are facing debts, cash flow problems, and in some cases, they have been forced to close their businesses or lay off workers.

Pending bills have become a major issue in Kenya over the past few years. Suppliers continue to complain that county governments are not honouring their payments. While the national government keeps blaming counties for this problem, county leaders often say that they do not receive enough money from the national government. But this latest report shows that the real problem could be mismanagement and possibly corruption within the counties themselves.

If payments worth billions can be cancelled after being approved, it shows a serious weakness in the financial system.

This situation is not just about money. It affects service delivery in many areas such as health, education, and infrastructure. When suppliers are not paid, they are unable to continue delivering essential goods and services. This means hospitals might not get medicine, schools might lack learning materials, and roads may remain unfinished.

The livelihoods of many Kenyans are tied to government contracts, and when payments are delayed or cancelled, it leads to a ripple effect in the economy.

Pressure is growing for action to be taken. Anti-corruption agencies and the National Treasury are being urged to investigate the matter thoroughly. There is also a demand for those responsible to be identified and held accountable.

The findings by the Auditor-General have once again reminded Kenyans of the urgent need for transparency and accountability in public offices. Without real changes, the misuse of public funds will continue, and ordinary citizens will remain the biggest losers.