Auditor-General Nancy Gathungu called on Parliament to impose sanctions on government accounting officers who fail to implement audit and parliamentary recommendations, citing weak enforcement as a key driver of fiscal indiscipline and public fund misuse.
On a brisk morning in Nairobi, Auditor-General Nancy Gathungu stood before the National Assembly’s Public Accounts Committee on July 12, 2025, delivering a compelling case for stronger accountability in Kenya’s public sector. With a career spanning over three decades in auditing, Gathungu, known for her unflinching commitment to transparency, urged MPs to amend the Public Finance Management Act to introduce sanctions against accounting officers who disregard audit and parliamentary recommendations. Her remarks, made during a session reviewing her office’s latest reports, highlighted a persistent culture of fiscal indiscipline that she believes threatens Kenya’s economic stability. “The lack of consequences for ignoring audit recommendations fuels mismanagement, waste, and corruption,” she said, her voice resolute. “It’s time Parliament took decisive action to protect public resources.”
Gathungu’s call comes at a critical juncture for Kenya, where a public debt of KSh11.36 trillion and recurring protests over economic hardship have intensified scrutiny of government spending. Since taking office in July 2020, Gathungu has exposed billions in irregular expenditures, from the KSh104 billion Social Health Authority (SHA) procurement scandal to KSh8 billion in non-performing Hustler Fund loans. Her reports have consistently flagged issues like stalled projects, questionable payments, and payroll fraud, yet many recommendations remain unimplemented, with audit queries recurring year after year. “We see the same issues—misallocations, theft, and lack of value for money—because there’s no personal accountability for accounting officers,” she told the committee. “Sanctions would change that.”
The Auditor-General’s push for legislative reform targets the Public Finance Management (PFM) Act of 2012, which she argues lacks teeth to enforce compliance. Currently, accounting officers—typically principal secretaries or parastatal heads—face no personal penalties for failing to act on audit findings, leading to what Gathungu described as “perennial failure” to account for public funds. She proposed amendments to impose fines or imprisonment, citing Section 199 of the PFM Act, which already allows for penalties of up to five years in jail or KSh10 million for unspecified offenses. “We need specific provisions to hold individuals accountable,” she said, noting that her office has submitted a framework to Parliament for tracking and reporting on recommendation implementation, with two reports already tabled in March 2025.
The issue of non-compliance is starkly illustrated by recent audits. Gathungu’s 2024-2025 reports revealed that only 82 of over 12,000 public entities submitted financial statements by the September 30, 2024, deadline, hampering timely audits. She highlighted cases like the SHA system, where a private consortium’s control over a KSh104 billion health platform raised transparency concerns, and the Hustler Fund, where minors as young as 10 days old were inexplicably listed as borrowers. “These are not isolated incidents,” Gathungu said. “They reflect a systemic disregard for fiscal discipline that Parliament must address.” Her office’s findings have sparked public outrage, with X users praising her courage. One post read, “Nancy Gathungu is Kenya’s unsung hero, exposing rot while MPs sleep on her reports.” Another urged, “Protect her at all costs—she’s standing up to looters.”
Parliament’s role in the accountability chain is central to Gathungu’s argument. Under the Constitution and the Public Audit Act of 2015, her office submits reports to Parliament, which is tasked with enforcing recommendations through committees like the Public Accounts Committee (PAC) and Public Investments Committee (PIC). However, of 2,531 audit reports submitted since 2020, only a fraction have been fully acted upon. “Parliament must prioritize these reports,” Gathungu urged. “Delays in deliberation allow inefficiencies to persist, denying Kenyans value for their taxes.” Homa Bay Senator Moses Kajwang’, chair of the Senate County Public Accounts Committee, echoed her call, noting that inaction undermines public trust. “Kenyans are happy when Gathungu uncovers these scandals,” he said. “But happiness fades when nothing changes.”
The Auditor-General’s push has met resistance from some quarters. National Assembly Majority Leader Kimani Ichung’wah, who has clashed with Gathungu before, argued that her office sometimes publicizes reports prematurely, complicating parliamentary oversight. “Her independence doesn’t mean she’s above scrutiny,” he said, referencing a 2024 bill he sponsored to streamline audit processes. The bill, which proposed entry meetings between auditors and accounting officers, was seen by critics as an attempt to dilute Gathungu’s authority. She dismissed such claims, insisting, “My job is to audit without fear or favor, not to issue clearance certificates. Accounting officers must follow the law.” Her defiance has earned her both admiration and enmity, with some politicians reportedly lobbying to curb her powers.
Gathungu’s tenure, set to end in 2028, has been marked by significant achievements. Her office has cleared audit backlogs, audited KSh2.7 trillion in government expenditure, and supported 355 parliamentary committee sessions. Yet, challenges persist. Budget cuts, like the KSh270 million slashed from her 2024-2025 allocation, have strained operations, delaying plans for a Mombasa regional office and a new Nairobi headquarters. “We need resources to match our mandate,” she told MPs, appealing for reinstatement of funds to hire 150 audit associates and enhance technology. Alego Usonga MP Samuel Atandi supported her, suggesting greater investment in digital tools to improve efficiency. “Technology can cut costs and speed up audits,” he said, noting Gathungu’s efforts to modernize her office.
The broader context of Kenya’s fiscal challenges amplifies the urgency of Gathungu’s call. The 2022 petroleum pump price stabilization scandal, which cost taxpayers KSh34 billion, and ongoing issues like stalled county projects and payroll fraud underscore the need for accountability. In Trans Nzoia, for instance, a recent audit revealed millions wasted on idle medical equipment, while Tana River spent KSh629 million on legal fees without a county attorney. “These are public funds meant for schools, hospitals, and roads,” Gathungu said. “When recommendations are ignored, citizens suffer.” Her reports have also highlighted successes, such as the conversion of Mathari Referral Hospital to a semi-autonomous entity following her 2018 audit, showing that action on recommendations can yield results.
Public sentiment, particularly among Kenya’s youth, aligns with Gathungu’s push. The July 7 Saba Saba protests, which left 31 dead, were partly fueled by frustration over mismanagement and corruption. “Gathungu’s reports expose what we’re fighting for,” said Mercy Wairimu, a Nairobi student. “But MPs must act, or it’s just noise.” On X, the hashtag #SanctionAccountingOfficers trended, with users urging Parliament to back Gathungu’s reforms. One post read, “If MPs won’t enforce audits, what’s the point of her work?” Another called her “Kenya’s watchdog,” reflecting her growing public stature.
Opposition leaders have rallied behind Gathungu. ODM Secretary General Edwin Sifuna praised her resolve, saying, “She’s doing what Parliament should—holding looters accountable.” Wiper leader Kalonzo Musyoka urged MPs to fast-track PFM Act amendments, warning, “Without sanctions, corruption will thrive.” However, some government allies argue that existing laws are sufficient. Interior CS Kipchumba Murkomen claimed that accounting officers already face disciplinary measures through internal processes. “We don’t need new laws, just better enforcement,” he said, a stance Gathungu countered by noting that current mechanisms lack personal accountability.
The Auditor-General’s framework for tracking recommendations, introduced in 2024, is a proactive step. It monitors compliance across 12,000 public entities, with reports submitted to Parliament biannually. “This framework shows who’s acting and who’s not,” Gathungu said, urging MPs to use it to enforce accountability. Her office’s collaboration with international bodies like AFROSAI-E, where she serves as First Vice Chair, has also strengthened Kenya’s audit capacity, earning global recognition from INTOSAI for its performance measurement framework.
As Kenya navigates economic woes and political unrest, Gathungu’s call for sanctions resonates as a plea for systemic change. Her background as a Certified Public Accountant and mentor with the Association of Women Accountants of Kenya underscores her commitment to integrity. “I’m not here to make friends,” she told the committee. “I’m here to ensure public funds serve Kenyans.” With 67 percent youth unemployment and a rising cost of living, her work is a beacon for those demanding better governance. As Parliament debates her proposed reforms, the nation watches, hopeful that her push will translate into tangible action to safeguard public resources.
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