Thursday, 3 July, 2025
Accountability crisis in Kericho: Senators question hospital finances and municipality's autonomy
Bunge Tower Tuesday, 1st July 2025
The Senate County Public Investments & Special Funds Committee today met Kericho County leadership over financial irregularities, with Governor Dr. Erick Mutai facing questions about illegal waivers worth over Kshs 13 million and a dysfunctional municipality operating with just one employee.
Committee Vice-Chair Senator Eddy Oketch raised an issue on waivers totalling Kshs 13,359,421 granted to patients at Kericho County Referral Hospital without proper legal backing. "You cannot grant waivers of over 13 million shillings based on discretion without a policy or budgetary approval. This appears to be a flagrant violation of the Act, and it opens the door for abuse and loss of public funds," Oketch told the governor, citing breaches of Section 159 of the Public Finance Management Act.
The hospital's financial statements revealed staggering inaccuracies, including unexplained variances of Kshs 33,264,342 in net assets and Kshs 59,179,387 in cash flows. Senator William Kisang threatened disciplinary action against the responsible accountant, warning: "It is inconceivable that a professional accountant would append their signature to a document with such glaring discrepancies."
Meanwhile, Kericho Municipality exists only on paper despite receiving its charter. With 252 approved positions but only one actual employee, the municipality cannot function independently from county control. Committee Chair Senator Godfrey Osotsi demanded immediate action: "What we are seeing in Kericho is a municipality that exists only on paper. You must allow the board and its management to operate independently as envisioned in the Act."
The committee also flagged the incomplete Kericho Modern Market project, where 70% of contract payments (Kshs 164.4 million) have been disbursed despite the unfinished work and expired contractor bonds.