This archive report was first published on 12 November 2019.
As the country struggles to meet its statutory deadlines, the absence of a new Auditor-General has become a major obstacle. The Central Bank of Kenya (CBK) has been unable to submit its financials to Parliament, citing the need for a substantive Auditor-General to sign the books.
On November 12, 2019, the Business Daily Africa reported that the CBK was unable to submit its financials due to the lack of a new Auditor-General. This is not an isolated incident, as Kenya Power and East African Portland Cement Company have also gone public about their inability to publish financial results for the year ended June 2018 due to the absence of a new Auditor-General.
Kenya Re and KenGen, two other listed State-owned firms, have also been affected by the delay. The Capital Markets Authority has since extended the deadline for submission of results by State-owned companies to November 30.
The delay in the recruitment of the Auditor-General has significant implications for the country. The Auditor-General's office is crucial in ensuring the efficiency of the national resources shareable to the 47 counties. Under the Constitution, the allocation to counties should be at least 15 percent of the latest audited government revenues approved by Parliament.
However, the National Treasury has lagged behind in its revenue sharing base period since the devolved units were introduced in 2012. The current vacuum at the Auditor-General's office may stretch the base year for measuring revenues even further.
It is imperative that the President moves with speed and concludes the recruitment of the country's next Auditor-General. The Public Audit Act should also be amended to incorporate succession of the occupant and make the Auditor-General's reports final.
