Auditor-General Edward Ouko has called for a comprehensive review of the Integrated Financial Management System (Ifmis), highlighting its inability to accurately track public funds at the county level. Speaking at the Devolution Conference in Kirinyaga County, Ouko noted the system's shortcomings in providing reliable financial data for regional governments.
The audit chief argued that Ifmis, designed during Kenya's unitary governance era, fails to meet the needs of the current dual-government structure. He emphasized that discrepancies between Ifmis reports and actual financial records have persisted for years, complicating accountability efforts.
Ouko proposed separating the system into distinct county and national components, with a shared interface to enhance transparency. 'We must align our ICT infrastructure with devolution principles to address connectivity gaps in financial reporting,' he stated.
County officials have repeatedly criticized the system's inaccuracies. Nyeri County's finance executive, Robert Thuo Mwangi, described Ifmis-generated balances as 'unrealistic,' citing instances where reported surpluses exceeded annual budgets. Governors, including Meru's Kiraitu Murungi, have also blamed system failures for delayed fund disbursements, alleging the National Treasury uses technical glitches as a pretext to withhold resources.
Murungi criticized the continued central control over county finances, arguing that devolution requires legislative changes to grant regions tax-collection authority. 'Financial independence for counties remains unachieved as every transaction requires national approval,' he said.
