Koskei orders tough audit reforms as Universities put on zero-fault notice

Head of Public Service Felix Koskei has directed public universities to tighten governance and financial controls, warning that weak oversight and failure to implement audit recommendations will no longer be tolerated.

Koskei issued the directive on Wednesday during a virtual meeting that brought together university council members, vice chancellors, audit committee chairpersons and heads of internal audit.

The meeting was convened to revitalise governance and accountability systems across public universities amid growing concern over financial management and compliance gaps.

The forum adopted firm measures aimed at strengthening governance structures, safeguarding the independence of internal audit units and enforcing the implementation of audit findings.

“We are institutionalising a Zero Fault Audit regime to tighten controls and improve accountability across our public universities,” Koskei said.

He added that strong internal controls were critical to protecting public resources and restoring confidence in the higher education sector.

The Internal Auditor General’s Department presented a model governance framework positioning internal audit as a strategic partner in institutional management rather than a routine compliance function.

The presentation outlined a three-point strategy to enhance the effectiveness of internal audit and audit committees, including strengthening risk-based auditing, improving follow-up on audit recommendations and enhancing collaboration with university management and governing councils.

Officials from the National Treasury also outlined support mechanisms available to internal audit units and audit committees, while highlighting key challenges facing oversight structures in public universities, including resource constraints, management interference and delays in implementing audit reports.

Participants were taken through practical guidance on effective fiduciary oversight, including the “dos and don’ts” for audit committees and internal auditors to safeguard independence and integrity.

Koskei emphasised that audit independence must be protected at all levels and cautioned university leadership against undermining oversight functions.

“Internal audit units and audit committees must operate without interference. Their role is to provide assurance, strengthen controls and support sound decision-making,” he said.

The State Corporations Advisory Committee CEO, Simon Indimuli, made a presentation on the pillars of governance oversight in public universities, focusing on the roles of councils, management and oversight bodies in ensuring transparency, accountability and prudent use of public funds.

The meeting comes at a time when public universities are under increased scrutiny over financial sustainability, governance weaknesses and rising audit queries.

Koskei said the government would closely monitor compliance with the new measures, signalling a tougher stance on accountability in the management of public universities.

The chief of staff is spearheading a zero audit fault campaign targeting 100 per cent compliance in public entities to enhance accountability and eliminate corruption.

The initiative demands proactive internal audits, strict adherence to procurement laws, and the resolution of audit queries by accounting officers, shifting from reactive to preventive, risk-based audits.