This archive report was first published on 5 August 2019.
On August 5, 2019, Housing Principal Secretary Charles Hinga requested the National Treasury Internal Audit unit to conduct a full audit of State rent revenue.
The audit was prompted by a significant increase in deposits to a single bank account, which rose to Sh37.7 million in the six months to June, compared to Sh4.4 million paid in December.
According to documents presented before the committee, the rental income increased significantly after setting up the single account, with deposits reaching Sh74.6 million in June.
As of 2017, the State had 27,547 houses, with rent revenue deducted from staff amounting to Sh407.9 million in the year to June, while revenue statements reflected a total of Sh249.6 million.
Hinga expressed concern over whether the State was losing money or if it was an issue of revenue reconciliation, citing a lack of accountants.
