The Office of the Auditor-General (OAG) in Kenya has come under scrutiny following allegations that some auditors demanded payments of up to Sh1.5 million from public school principals in exchange for favourable audit reports. According to reports cited by The Standard, school principals claimed that some officers from the OAG were involved in an extortion scheme during audits. The principals, who wished to remain anonymous, expressed fear of victimisation if identified.
The allegations emerged as Parliament examines audit reports on public secondary schools, which have raised concerns over the management of school finances and other public resources. Audits tabled before the National Assembly in August found cases involving unauthorised levies, spending without proper supporting documents, and failure to collect outstanding fees. Other issues included unexplained cash withdrawals, unapproved bank loans, weaknesses in procurement systems, and questionable investments by some schools.
The National Assembly Public Investments Committee on Governance and Education has been examining the audit findings, including discrepancies between student enrolment figures recorded by schools and the information contained in the National Education Management Information System (NEMIS). The committee has raised concerns over capitation funding and enrolment figures and is considering engaging the Ministry of Education on whether the existing secondary school fee structure is sufficient.
In response to the allegations, the OAG issued a statement on September 23, assuring the public that it takes allegations against its employees seriously and has established channels for reporting and addressing concerns about staff conduct. The audit office urged anyone with information concerning alleged misconduct to report the matter to the relevant investigative authorities, including the Ethics and Anti-Corruption Commission.
The OAG emphasised its constitutional role in examining the use and management of public resources and presenting findings to Parliament and county assemblies. The office referred to a High Court judgment delivered on January 26, 2022, which reaffirmed that public funds transferred to private entities remain subject to audit by the Auditor-General. Since taking up the role of Independent External Auditor in the 2022/2023 financial year, the OAG has raised concerns relating to financial records, school funding, and expenditure management.
The audit office urged school heads to respond to the findings contained in its reports instead of shifting attention to other issues. The OAG offers advisory audit services to public institutions to help improve internal controls, compliance with laws and regulations, and the keeping of proper financial records. All public entities are required to uphold accountability, transparency, and good governance when managing public resources.
While the allegations against individual auditors have not been established by a court, the OAG remains committed to its responsibility to ensure its work makes a difference in the lives and livelihoods of Kenyans. The office has asked individuals with complaints about the conduct of its employees to use its internal reporting channels or approach the relevant investigative agencies, even as parliamentary scrutiny of financial management in public schools continues.
Key points
- The Auditor-General's office has defended its staff against allegations of demanding payments from public school principals in exchange for favourable audit reports.
- The allegations emerged as Parliament examines audit reports on public secondary schools, which have raised concerns over the management of school finances and other public resources.
- The OAG has urged school heads to respond to audit findings and has offered advisory audit services to public institutions to improve internal controls and compliance with laws and regulations.
