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A Senate watchdog committee has unearthed financial rot in 13 county assemblies, detailing widespread financial mismanagement, weak governance and persistent legal breaches.

In its report on the scrutiny of the Auditor General’s report for the year 2024-25, the Senate County Public Accounts Committee flagged the assemblies for consistently failing to implement audit recommendations to seal the financial loopholes.

The panel said the recurring non-compliance reflects “systemic weaknesses in financial management, internal controls and compliance across county assemblies”.

Chairperson Senator Moses Kajwang told the committee that many accounting officers have repeatedly ignored audit directives.

“This cyclical non-compliance undermines the entire accountability framework,” the report notes.

One of the most serious findings relates to staffing practices, where several assemblies were found to have violated ethnic diversity laws. In some extreme cases, Wajir county assembly had 97 per cent of staff drawn from one ethnic community, while Siaya stood at 93.3 per cent.

The committee warned that this breaches the National Cohesion and Integration Act. “This demonstrates a systemic lack of affirmative action and inclusivity in public service recruitment,” the report states.

The Senate also flagged failure to meet the constitutional requirement that at least five per cent of public employees be persons with disabilities (PWDs), with some assemblies reporting none at all. “There is a consistent failure to meet the statutory threshold for inclusion of persons with disabilities,” the report states.

Another major concern is the “one-third basic salary rule”, where employees earn net pay below one-third of their basic salary due to statutory deductions and loan obligations. The committee said this reflects weak payroll controls.

“The lack of automated payroll systems has enabled illegal deductions to persist unchecked,” the report observes.

Irregular spending also featured prominently, particularly payments to organisations not established in law, including the County Assemblies Forum (CAF) and the Society of Clerks at the Table (Socatt).

The committee was firm in its stance, stating: “These bodies are not anchored in any Act of Parliament, and, therefore, public funds should not be directed to them.”

It added that such spending violates the constitutional principle that public funds shall only be used for authorised purposes.

The report also cited cases of unsupported allowances and inflated claims.

In one instance, the Wajir county assembly was flagged for overpaying Sh52.3 million in mileage allowances. “There were cases of inflated and unsupported expenditure lacking proper documentation,” the committee noted.

Weak internal controls were identified across most assemblies, including non-functional audit committees, a lack of risk management systems and failure to insure public assets. The committee said these gaps expose public resources to loss and misuse.

Delays in exchequer disbursements from the National Treasury were acknowledged, but the committee insisted that internal inefficiencies remain a major problem.

“Delayed funding has affected operations, but weak internal controls have worsened the situation,” the report states.

Capital projects also came under scrutiny, with Marsabit county assembly’s chamber construction delayed by more than 296 weeks beyond the original schedule.

The committee said no approval was provided for the extension, raising concerns over value for money.

In another case, the committee flagged overspending on the speaker’s residence, which exceeded the approved ceiling by more than Sh41 million.

It recommended investigations, stating: “We recommend that the Ethics and Anti-Corruption Commission investigate the accounting officer for unauthorised expenditure.”

The committee also noted continued payment of rental allowances even after the residence was reportedly complete.

“The speaker was paid Sh960,000 in rental allowance despite provision of an official residence,” the report stated.

Despite the widespread concerns, the committee acknowledged some improvements, including partial compliance in payroll systems and the resolution of selected audit issues.

However, it warned that governance gaps remain deeply entrenched. “Accounting officers must take responsibility for implementing audit recommendations and ensuring compliance with the law,” the report concludes.

The committee directed county assemblies to submit compliance reports within 60 to 90 days and urged the National Treasury to ensure the timely and predictable disbursement of funds to counties.

It further called for legal reforms to regulate bodies such as Caf and Socatt, stating: “If no legal framework is established within the stipulated period, all payments to these entities must cease.”