Auditor General Uncovers Sh14 Billion in Unverified Judiciary Staff Payments
A recent audit has revealed significant financial discrepancies in the Kenyan Judiciary's compensation practices, raising concerns about accountability and transparency. The report, covering the financial year ending June 2024, indicates that the Judiciary disbursed over Sh14 billion in staff compensation without proper employment records for 2,180 employees, casting doubt on the accuracy and legitimacy of these payments.
The audit highlights a lack of documentation for a substantial portion of the Judiciary's workforce, with no records to confirm the employment status of more than 2,000 staff members. This gap in record-keeping has led to questions about whether these payments were justified or if they could involve irregularities such as payments to non-existent employees or unauthorized disbursements. The absence of critical documentation, including employment contracts, payroll records, and verification details, has made it impossible to confirm the accuracy of the Sh14.05 billion allocated for staff salaries and allowances.
Further scrutiny revealed additional financial mismanagement within the Judiciary. The report notes that Sh352.9 million in third-party deposits linked to 72 court stations remains held by former district treasuries, despite the Judiciary's financial autonomy under the 2010 Constitution. These funds have not been transferred back to the Judiciary, and a 2021 request to the National Treasury for confirmation of this liability has gone unanswered. Additionally, the audit uncovered that Sh150.75 million was stolen by Judiciary staff across courts in Embu, Malindi, Molo, Nakuru, and the Judiciary headquarters during the 2017/2018 financial year and earlier. Despite investigations by the Directorate of Criminal Investigations and the Assets Recovery Agency, these funds remain unrecovered as of June 2023.
The report also flagged the Judiciary for failing to provide monthly and quarterly bank statements for audit purposes and for neglecting to conduct internal audits on third-party deposits. These oversights have compounded the challenges in verifying the accuracy and completeness of the institution’s financial records. Moreover, the Judiciary has been criticized for carrying forward unpaid bills into subsequent financial years, a practice that strains budgetary provisions and undermines financial planning.
The findings have sparked calls for urgent reforms to address systemic weaknesses in the Judiciary's financial management. Recommendations include strengthening internal controls, improving record-keeping practices, and ensuring timely audits to prevent further losses. The report emphasizes the need for the Judiciary to establish robust oversight mechanisms to safeguard public funds and restore confidence in its financial operations.
Public reaction has been one of concern, with stakeholders urging swift action to address the reported irregularities. The revelations come at a time when public trust in government institutions is under scrutiny, and the Judiciary’s role as a pillar of justice makes these findings particularly significant. As the institution responsible for upholding the rule of law, the Judiciary faces mounting pressure to demonstrate accountability and implement corrective measures to prevent future financial lapses.
The Auditor General has called for immediate steps to recover misappropriated funds and ensure compliance with financial regulations. Without prompt action, the Judiciary risks further erosion of public confidence and potential financial instability. The report serves as a critical reminder of the need for transparency and accountability in the management of public resources, particularly within an institution central to Kenya’s governance framework.