The Senate’s County Public Accounts Committee (CPAC) has rejected the Nandi County Executive’s financial statements for the 2024/25 financial year, citing serious omissions and inaccurate reporting that undermine their credibility.
The committee concluded that the statements failed to comply with public sector financial reporting standards and did not present a true and fair view of the county’s financial position.
It has now directed Governor Stephen Sang to take administrative action against officers responsible for preparing the accounts, citing professional negligence.
Audit Raises Questions Over County Finances
The findings stem from the Office of the Auditor-General’s review of the county’s financial statements for the year ending June 30, 2025.
Auditors flagged the failure to disclose key financial information, including opening bank balances, outstanding employee and supplier payables, funds held in bank accounts, and the true status of the county’s debt.
Although Governor Sang told the committee that part of the county’s debt had been settled, he failed to provide supporting documents identifying beneficiaries or the amounts paid.
Committee Chair Moses Kajwang’ criticized the county’s submissions, saying the responses failed to address concerns raised by the Auditor-General.
“This Statement does not provide a true and fair view of the Nandi County Executive,” Kajwang’ said, adding that the committee had serious doubts about the accuracy and reliability of the figures presented.
Unexplained Variances Deepen Committee Concerns
Among the most significant concerns was the county’s failure to disclose expenditure amounting to approximately KSh 1 billion during the financial year.
The audit also identified an unexplained variance of KSh 278 million in trade and other payables, which county officials were unable to reconcile.
Further scrutiny revealed an unreconciled variance of KSh 62.9 million relating to refundable deposits and prepayments. While the Statement of Financial Position reflected a nil balance, supporting schedules showed otherwise.
The committee also questioned the whereabouts of the KSh 62.9 million, which was expected to remain ringfenced in the County Revenue Fund.
Nandi Senator Samson Cherargey described the inaccurate financial statements as a case of professional negligence, saying the county had breached public financial reporting requirements by failing to disclose material information.
He also faulted the county for failing to provide a schedule of pending bills or a register of retained funds, making it impossible to verify beneficiaries or outstanding obligations.
