The Office of the Auditor General has raised concerns that it will be increasingly difficult to audit entities in the healthcare sector and the affordable housing program.
This was revealed on Tuesday, March 5, during the presentation of The National Assembly's Budget and Appropriation Committee's report on the 2024 Budget Policy Statement.
Auditor General Nancy Gathungu raised the concerns to the Parliamentary committee after the budget was slashed from the Ksh11 billion proposed budget by Ksh3 billion to Ksh8.6 billion for the 2024/2025 financial year.
“The Office of the Auditor General has been allocated a budget ceiling of Ksh 8.599 billion against an estimated budgetary requirement of Kshs.11.380 billion meaning that there is a budgetary shortfall of Ksh3 billion,” the report indicated.
“This is despite the expansion of government programs over time to ensure sustainable development and delivery of continuous and quality services to the citizens.”
Gathungu remarked that the Kenya Kwanza administration had come up with different policies which had resulted in additional institutions that required auditing.
She cited in particular phasing out of the National Health Insurance Fund (NHIF) that was replaced by the Social Health Authority, Primary Healthcare Fund, Social Health Insurance Fund and Emergency Chronic and Critical Illness Fund.
The four funds will need to be audited but the resources are stretched due to the Ksh3 billion slash.
“Additionally, the office will be expected to audit the Housing Levy Fund which is both a revenue and expenditure entity as well as the Financial Inclusion Fund which may require separation of business units in future due to its existing structure that has a savings component, a pension and a banking element,” Gathungu complained.
The Auditor General further raised concerns over the continued underfunding of oversight institutions including Parliament, the Office of the Auditor General, the Ethics and Anti-Corruption Commission, the Controller of Budget, the Office of the Director of Public Prosecutions and the Judiciary.
It was noted that the oversight institutions have been allocated 2 per cent of the total national budget over the years, including FY 2024/25.
“There is a need to increase the funding to these institutions to see the fruits of the fight against wastage and corruption,” she concluded.
