Auditor General Exposes Sh600 Million Illegal Allowance Scandal Across 17 Counties

A damning audit report by Auditor General Nancy Gathungu has unmasked a systemic financial scandal involving over Sh600 million in irregular allowance payments to Members of County Assemblies (MCAs). The report, covering the financial year ended June 30, 2025, reveals widespread manipulation of mileage, sitting, and travel claims, sparking public outrage over the blatant disregard for fiscal discipline.

The audit exposes a culture of institutionalized plunder, with 17 counties—including Nairobi, Kiambu, Garissa, and Laikipia—flagged for payments that lacked supporting documentation or directly violated Salaries and Remuneration Commission (SRC) guidelines.

Key Findings of the Audit:

Nairobi: The County Assembly failed to account for a staggering Sh303.7 million in impairment allowances, with little to no proof of entitlement.
Elgeyo Marakwet: Auditors were unable to verify Sh134.6 million in personal allowances paid out without administrative justification.
Laikipia: Questionable spending hit Sh62 million, including Sh30.1 million in sitting and mileage claims devoid of meeting minutes, notices, or attendance records. In a bizarre move, the Speaker continued to claim house allowances despite occupying an official residence.
Garissa: 16 nominated MCAs collectively pocketed Sh28.3 million in mileage reimbursements, each consistently claiming the absolute maximum allowed rate despite a total lack of supporting evidence for their travel.
Isiolo: MCAs were paid Sh5.7 million for a “four-day retreat” held barely 10 kilometers from their office—a direct violation of SRC rules barring subsistence payments within a 50-kilometer radius of a duty station.

“The assembly failed to justify the payments,” the report noted, highlighting how weak internal controls have allowed MCAs to treat public coffers as personal piggy banks.

The revelations come at a time when the average Kenyan is reeling from increased taxation and a stagnant economy. With the Controller of Budget separately reporting that MCAs collectively drained Sh772.7 million in sitting allowances in just six months, the Auditor General’s findings reinforce fears that devolution is being undermined by runaway recurrent expenditure.