A damning audit by the Auditor-General has uncovered widespread financial mismanagement within the Nairobi City County, revealing billions of shillings unaccounted for, stalled multi-million shilling projects, and thousands of irregularly employed staff — raising fresh concerns over accountability and service delivery in the nation’s capital.
- The audit, covering the 2023/2024 financial year, paints a troubling picture of a county government grappling with misappropriated funds, ballooning wage bills, and questionable procurement practices.
- Among the audit’s highlights is an unexplained discrepancy of Kshs. 839.9 million in employee compensation, a bloated workforce, and irregular recruitment of county staff.
- Nairobi County overspent its approved budget of KShs. 42.3 billion by KShs. 12.3 billion but only allocated KShs. 2.7 billion to development — less than 10% of that year’s spending- against set regulations that county governments should spend at least 30% of their expenditure on development.
“The County Executive recruited three thousand eight hundred and thirty-four (3,834) staff during the financial year under review. However, the recruitment was not supported with a recruitment plan, advertisement, long list and shortlists, interview reports and score sheets,” the report shows.
It was not possible to determine how the recruited staff were engaged and whether the vacancies existed in the establishment. The audit also exposes that over 57% of the county’s total revenue is used for salaries, violating legal limits set at 35%, and salaries totaling Kshs. 146.3 million for defunct NMS staff were paid outside the official payroll.
The audit also raised significant issues about Nairobi County’s ambitious school feeding program. A contract with Food for Education, signed in December 2023, set meal costs at Kshs 25 per plate, with learners contributing KSh 5 directly, but the audit found that the County paid the full Kshs.25, resulting in Food for Education receiving KSh 30 per plate—above the agreed rate.
Pending Bills
The audit shows that that Nairobi County owes KShs 118.8 billion, while the County Revenue Fund has KSh 1.48bn in unspent funds.
The Management did not provide an explanation for the failure to clear these bills, raising concerns about fiscal responsibility. This delay in settling obligations not only impacts vendor relations but also disrupts future budget planning, as outstanding bills take precedence over new expenditures in subsequent fiscal years.
Separately, an analysis of pending legal fees highlights significant financial exposure, with four advocates owed Kshs 6.27 billion—representing 29% of the total pending legal costs of Kshs 21.37 billion. Legal fees now account for 11% of the County Executive’s overall pending bills.
Many of these cases stem from disputes over unpaid claims for completed services, irregular procurement practices, unprocedural termination of employment contracts, and poor contract management. These legal challenges have resulted in costly judgments, escalating litigation expenses and interest burdens for the County.
Unfinished Stadia
Among the most glaring failures is the Dandora Stadium project, which despite swallowing Kshs. 223.3 million, remains incomplete. Floodlights are non-functional, roofing is substandard, and the pitch sits idle.
- The Joe Kadenge City Stadium stalled at just 43% completion, with contractors paid over Kshs. 41 million without visible progress. No contract extension or formal explanation was provided, further compounding the mess.
- The rehabilitation of Joseph Kangethe Stadium has faced significant setbacks after the original contractor, awarded Kshs.135.2 million in 2022/2023, abandoned the project after completing only 20% of the work despite receiving Kshs.29.9 million for the initial payment.
- An inspection revealed missing technical reports, incomplete drainage, and unassessed structural integrity.
A new Kshs 124 million contract was issued in August 2024 for separate works, excluding unfinished elements from the first phase, with no clear plan for their completion. As a result, the project’s value for money and proper use of funds remain in question.
The construction of a Modern OPD Complex at Mutuini Hospital has stalled after the County Executive awarded a second contract worth KSh 236.5 million, despite initial works halting at 55% completion under a previous KSh 149.1 million contract.
The original contractor, paid KShs 84.1 million, abandoned the project, prompting a re-measurement that introduced an unclarified extra floor, inflating costs by KSh 169.4 million—exceeding the initial full project budget. A 2024 inspection found the site deserted, raising concerns over the project’s cost irregularities and the lack of value for public funds.
