The Auditor-General has raised concerns over wasteful and irregular expenditure by the State Law Office and Department of Justice, highlighting questionable rent payments amounting to millions of shillings during the 2023/2024 financial year.
- •In the latest audit report, the Department is reported to have paid Kshs.20.9 million to the Central Bank of Kenya Staff Pension Scheme for office space on the 18th, 19th, and 20th floors of the Central Bank Pension Towers — despite the offices being unoccupied at the time of physical inspection in November 2024.
- •Additionally, the audit revealed that KSh 2.28 million in rent was paid for nine regional offices whose lease agreements had already expired, some as early as April 2022.
- •These findings form part of a broader review of expenditures, where a total of KSh 954.7 million was spent on goods and services, including Ksh 76.8 million on rental of assets.
According to the auditor, no explanation was provided by management regarding the failure to renew the leases, raising serious concerns about internal controls and financial accountability.
The Auditor-General has called for improved financial oversight, timely contract renewals, and better utilization of public funds in accordance with the principles of transparency, accountability, and value for money.
Meanwhile, the Auditor General’s 2023/24 report has also raised concerns over the State Department for Public Service’s rental expenditures, highlighting a significant omission in rent payments for Huduma Centres operating from Postal Corporation of Kenya (PCK) premises.
According to the report, while the department spent KSh 282.77 million on rental of produced assets during the review period, this figure does not account for twenty-three Huduma Centres located within PCK buildings across the country. These centres operate without any formal lease agreements, raising questions about transparency, valuation, and legal compliance in the use of public resources.
Audit inspections indicated that no definitive confirmation of space occupied had been completed, and valuation processes were still ongoing, suggesting a lack of clarity in the arrangements between the State Department and PCK. This ambiguity has now culminated in a Kshs.1.67 billion claim by the Postal Corporation for rent and utility costs accrued over time.
In response to the escalating dispute, the Office of the Attorney General issued a legal opinion advising the Postal Corporation to negotiate directly with the State Department’s Accounting Officer to arrive at a reasonable rental figure. Should the parties fail to reach a consensus, the Attorney General recommended that the matter be escalated to the Chief of Staff and Head of Public Service for mediation.
The lack of lease agreements and clear valuation of the space used by Huduma Centres in PCK buildings underscores broader governance concerns about inter-agency coordination and financial accountability in government operations.
The Auditor General’s findings are likely to prompt renewed scrutiny by parliamentary committees and civil society watchdogs.
