Senate Watchdog Demands EACC Probe, Fresh Audit Over Billions Lost in County Irregularities

By Our Reporter,Senate.

A Senate watchdog committee has called on the Ethics and Anti-Corruption Commission (EACC) to launch investigations into how several county governments handled public funds amid glaring breaches of the law, irregular withdrawals, questionable spending, stalled projects and ballooning pending bills running into billions of shillings.

The Senate County Public Accounts Committee (CPAC) has also directed Auditor-General Nancy Gathungu to conduct fresh audits on multi-million shilling county projects where there are strong suspicions that funds may have been diverted for purposes other than those approved.

One of the counties under sharp scrutiny is Mandera, where Senators want a fresh audit into over Sh900 million spent on emergency-related programmes by the administration of Governor Mohamed Adan Khalif.

According to the Auditor-General’s report for the financial year ending June 2025, the Mandera County Government spent Sh382.3 million on relief and refugee assistance, Sh55.9 million on the purchase of seedlings, Sh32.8 million on water trucking, and Sh459 million on scholarships and educational benefits.

However, Senators raised concerns that the county did not have an established Emergency Fund at the time of the expenditure, as required by law.

It emerged that the Mandera County Emergency Fund Act was only enacted last year, paving the way for the fund’s establishment in the current financial year—despite drought and emergency situations being a regular occurrence in the region.

Lawmakers questioned how the county justified spending millions on seedlings while grappling with prolonged drought.

“Without assurance from the auditors, it will be difficult for us to confirm that the seedlings were delivered, relief food was supplied, or water was actually trucked,” said Homa Bay Senator Moses Kajwang’.

“We demand a thorough audit of that expenditure.”
Kajwang’ described emergency spending in counties as “a black hole,” recalling instances where governors justified questionable expenditures under the guise of emergencies.

Nandi Senator Samson Cherargei also faulted the county’s priorities.

“What kind of seedlings were you purchasing for Sh55.9 million when the county was experiencing drought? That money should have gone to relief food, water trucking and other urgent interventions,” he said.

Governor Khalif defended the expenditure, saying it was budgeted under special programmes and targeted over 6,000 registered farmers, particularly those along the Dawa River and irrigation schemes such as BP1.
“We have been prudent in managing our resources to ensure lives and livelihoods are not lost,” Khalif told the committee.
The committee also grilled West Pokot Governor Simon Kachapin over a ballooning wage bill that exceeded legal limits. The Auditor-General’s report showed that the county spent Sh3 billion on staff emoluments—46 per cent of actual revenue collected—contravening the Public Finance Management (County Governments) Regulations, 2015.

Kachapin acknowledged the challenge but said his administration was implementing cost-containment measures, including staff rationalisation and limiting new recruitment. He added that the county had adopted a phased transition to accrual accounting, expected to be completed by June 30, 2027.

However, CPAC Vice Chair Johnes Mwaruma (Taita Taveta) questioned the governor over stalled high-value projects, including a tourist hotel, education office and governor’s complex, where funds had been spent with little to show.

Kachapin said the education office block had been completed, while completion of the remaining projects had been factored into the 2026–2027 budget.
Bungoma Governor Kenneth Lusaka was also put on the spot over failure to remit Sh549 million in gratuity deducted from salaries of former county employees.

Lusaka said the anomaly occurred during his predecessor’s tenure but confirmed that his administration had set aside Sh130 million to begin clearing the backlog and promised action against officers responsible for the non-remittance.

The Bungoma governor further faced questions over a Sh599 million engagement with a private insurance broker to provide medical cover for county staff, amid claims that workers went without cover between February and May 2025.

Kajwang’ questioned why Bungoma County had not considered enrolling staff under the Social Health Insurance Fund (SHIF), arguing it would have been cheaper and more transparent.

Additionally, Senators criticised the expenditure of Sh3.6 million on imprest for Christmas tree lighting celebrations, terming it wasteful. Lusaka defended the spending, saying it occurred in 2019.

Bungoma Senator Wafula Wakoli called on the EACC to revisit the matter and ensure any officials involved refund public funds.

“This madness shows how reckless spending has become in some counties,” Kajwang’ said.
[DNK-International@February 4,2026]8

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