This archive report was first published on 21 November 2019.
Thursday, November 21, 2019, marked a significant deadline for six State-controlled institutions, including three companies listed on the Nairobi Securities Exchange (NSE). However, due to a vacancy in the Auditor-General's office, these institutions have failed to meet the deadline to publish their financial results for the year ended June.
The affected institutions are the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA), the Ethics and Anti-Corruption Commission (EACC), Kenya Power, KenGen, and East African Portland Cement Company (EAPCC). The last three are listed on the NSE.
State-backed firms and agencies must secure approval for reporting their financial results from the auditor-general. However, the previous holder of that office, Edward Ouko, retired in August, and his successor is yet to be named. President Uhuru Kenyatta is yet to name the chief auditor, although a shortlist of three candidates has already been presented to State House.
On Tuesday, the President appointed a new Controller of Budget to replace Agnes Odhiambo, whose eight-year single term ended in August. The same date marked the end of Mr. Ouko's term as auditor-general since 2011.
"It is important to note that entities with statutory timelines to submit audit reports remain in breach of the law due to the existence of a vacancy in the office of auditor-general," the Public Investments Committee (PIC) said in the report.
KenGen, Kenya Power, and EAPCC had sought the approval of the CMA before November 30, 2019. However, it is unclear whether the process can be completed ahead of the deadline and allow the three firms to comply with the new publication deadline issued by the CMA.
