The Kenya Association of Manufacturers (KAM) will refund over KSh3 million to the Confederation of Danish Industry (DI) following irregularities in the 2020 and 2021 projects.
During the review of the 2020 and 2021 project audits, a discovery was made of falsified expenditures in the DI-funded project by a former staff member.
Consequently, a forensic audit was initiated by KAM, and action was taken on the audit findings.
KAM undertook a forensic audit of DI-funded projects
Accordingly, the lobby undertook necessary corrective actions to further tighten internal controls to prevent such an occurrence.
In addition, DI appointed an independent auditor to review KAM’s forensic audit and provide necessary findings for further action. KAM will reimburse DI KSh3,922,435.
DI has had a long-standing relationship with the Kenyan lobby, spanning over 20 years. The partnership has seen DI support the Association through grants, capacity-building projects and initiatives to make KAM a financially sustainable Business Member Organization (BMO) and a strong voice for sustainable development within the manufacturing space.
“We would like to confirm that we reviewed the audit reports and their findings and took the necessary administrative actions relating to KAM’s financial procedures and processes. DI has full confidence in the leadership of the lobby and the steps undertaken to strengthen its financial management procedures and strict comprehensive controls including regular financial audits conducted by reputable external auditing firms to continuously monitor all its processes to mitigate such future cases,” reads a joint statement by Rajan Shah (KAM Chairman) and Jesper Friis Board Member DI East Africa
“As part of DI’s commitment to the Danish Government, the organisation will enact closer follow-up with the lobby for a period to ensure that financial procedures are followed.”
Established in 1959, the manufacturers’ lobby represents the interests of the manufacturing and value-add industries in Kenya. The Association has grown into a dynamic, vibrant, credible Association that unites industrialists and offers a common voice for businesses.
The lobby group is tasked with driving fact-based policy advocacy towards the formation of industrial policies to strengthen and support the country’s economic development. Through fact-based advocacy, KAM partners with Government and its associated agencies to ensure a dynamic and flourishing manufacturing sector in Kenya, to realize a double-digit contribution to GDP.
The Confederation of Danish Industry – DI – is Denmark’s largest, most representative and most influential business and employers’ organisation, covering manufacturing as well as service industries across sectors such as transport, energy, IT, health, trade and professional services.
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