PIC-SSAA grills ca CEO over audit irregularities

PIC-SSAA grills ca CEO over audit irregularities

Bunge Towers, Parliament Buildings.
Thursday, July 17, 2025.

The Public Investments Committee on Social Services, Administration and Agriculture, chaired by Hon. Emmanuel Wangwe (Navakholo), today met with Communications Authority of Kenya (CA) CEO David Muganyi to respond to serious audit queries. The session focused on the Auditor-General’s reports covering the financial years 2020/2021 to 2023/2024.

The reports flagged multiple irregularities, raising accountability concerns within the Authority. Committee members demanded clear explanations on financial management, delayed projects, and non-compliance with legal frameworks.

A key issue was CAK’s failure to prepare and submit separate financial statements for the Civil Servants (Housing) Fund and Mortgage Scheme. The receivables, totalling over Kshs. 1.4 billion in 2020/2021, were included in the main accounts without standalone reports.

This omission violates the Public Finance Management Act, 2012. Though the National Treasury has acknowledged the lapse and pledged to address it, the committee pressed for timelines and corrective action.

The committee also interrogated the Authority over long-outstanding receivables. Despite CAK’s assurance that recovery efforts are underway, MPs questioned the effectiveness of these efforts and demanded a structured recovery plan.

An additional area of concern was the acquisition of a parcel of land in Trans-Nzoia County valued at Kshs. 1 billion. The land was transferred to CA without sufficient justification or proper documentation.

CA stated that 30 acres of the land will be allocated for a new police station. However, lawmakers demanded further clarity on the acquisition process, valuation procedures, and the current status of ownership.

Budgetary performance also came under scrutiny. The audit revealed inconsistencies in revenue collection and expenditure, with instances of both overcollection and underperformance. MPs raised concerns over weak planning and financial controls.

The committee also tackled delays in the rollout of the Licensing Management System (LMS). The project, meant to enhance licensing operations, has faced persistent delays linked to third-party system challenges.

These delays have led to increased costs and hindered service delivery. The committee sought to establish accountability, timelines for completion, and whether procurement or technical failures played a role.

As the session concluded, Hon. Wangwe emphasised the need for transparency and institutional reforms within CA. He said Parliament will not tolerate misuse or mismanagement of public funds.