A stunning audit has uncovered a previously unknown Sh151 million bank account quietly operated by Nairobi County officials, raising urgent questions about financial governance, transparency, and accountability at City Hall. The discovery, revealed in the Auditor-General’s 2024/25 financial review, has ignited political and public scrutiny over how public funds are managed and whether proper oversight mechanisms were deliberately circumvented.
The account, labelled “NCC Imprest Operations Account,” was opened in November 2024 at a local commercial bank but was never disclosed in the county’s official financial statements, according to the audit report. Deposits into the account began immediately, with Sh98.1 million received on November 25, 2024, followed by Sh53.5 million on January 22, 2025—bringing the total to Sh151.6 million by June 30, 2025.
Critically, auditors found no formal approval, documentation, signatories, or explanation for the account’s purpose or operations, a glaring breach of public finance regulations designed to govern revenue and expenditure. Written invoices, contracts, or bank statements justifying the deposits were missing, leaving the source and intent of the funds unverified and outside normal county oversight.
In its report, the Auditor-General noted the absence of a cash book or bank reconciliation statements, making it impossible to trace how the money was used or whether it supported legitimate county activities. The account was meant for expenditure, but with none of the required supporting documents on record, auditors flagged it as a potential vehicle for financial mismanagement.
The audit also uncovered broader lapses in Nairobi’s financial controls, including missing documentation for travel expenses, unauthorized per diem payments, and large sums in unverified receivables. One notable anomaly was over Sh7.2 million reportedly spent on an overseas sustainability training in Singapore, for which no travel or procurement records could be provided.
On Thursday, senior county officials were summoned before the Nairobi County Assembly’s Public Accounts Committee to explain the irregularities. Committee chair Chege Mwaura emphasized that residents deserve clarity on how their tax money is spent and pledged further hearings to hold responsible parties accountable.
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