A report by Auditor-General Edward Ouko has revealed that Ksh12.6 billion could not be accounted for since the launch of the Inua Jamii programme in 2012.
The programme was set up as a means to boost the elderly and vulnerable during tough economic times.
However, Ouko’s report tells a tale of how employees have capitalized on a loophole within the system to make away with Ksh300 million every two months.
“From figures sampled in a number of counties, 208 beneficiaries in January and February 2015 had already died and the caregiver continued to collect payments,” the report reads.
In his report, the auditor set his sights on the social development department under the Ministry of East African Community, Labor, and Social Protection, who were tasked with implementing the programme.
According to Ouko’s findings, the officials shell out large sums of cash to dead beneficiaries, long after they have been laid to rest, despite being notified of the death.
This has led to unpaid funds of about Ksh300 million being stowed away every two months to a designated account.
Ouko also highlighted how banks tasked with managing the funds have been illegally siphoning irregular commissions.
“When a beneficiary misses a payment and the funds are rolled over to the next payment cycle, the bank gets a double commission when the arrears are paid,” read the report.
The auditor also carried out on-field surveys and discovered numerous well to do households as well as individuals below the targeted age group benefiting from the programme.
Ouko called for an in-depth investigation into the programme, citing insufficient data and documentation on the project as the root cause of the irregular, uncoordinated and unpredictable payments.
