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Auditor-General FCPA Nancy Gathungu has appealed to the Budget and Appropriations Committee to reconsider and reinstate the funds reduced from previous budget allocations in the Budget Policy Statement (BPS) for the Financial Year 2024/25 and the current financial year. Gathungu emphasized that restoring the budget is essential for her office to continue fulfilling its constitutional mandate and to ensure the provision of quality and timely audit reports for effective oversight.
During the meeting chaired by Hon. Ndindi Nyoro (Kiharu), Gathungu highlighted that the Office of the Auditor General (OAG) was allocated Kshs. 8.6 billion in the 2024 BPS, comprising Kshs. 8.28 billion for recurrent expenditure and Kshs. 315 million for development expenditure. However, the proposed estimates reduced the recurrent budget allocation to Kshs. 8.21 billion. Key areas affected by this reduction include training expenses, general supplies, and services, among other operational expenses.
Gathungu also outlined the costs associated with capital projects, including the construction of the Mombasa Regional Office, estimated at Kshs. 900 million, and the proposed OAG Headquarters in Nairobi. She requested an allocation of Kshs. 500 million to initiate the preliminary planning for the headquarters project, which has an estimated total cost of Kshs. 6 billion.
Chairperson Hon. Ndindi Nyoro questioned the return on investment for the OAG Headquarters, noting that the annual rental expenditure of Kshs. 180 million could justify purchasing a major building in Nairobi instead of constructing a new one. Gathungu responded by emphasizing the escalating costs due to delays and the ongoing lease expenses. She reiterated the importance of reinstating funds for the Mombasa office and beginning discussions for the Nairobi headquarters project.
Committee Members expressed support for prioritizing the Mombasa Regional Office. Additionally, Gathungu welcomed the enhancement of personnel emoluments by Kshs. 278 million but noted that it still fell short by Kshs. 84.5 million from the estimated requirement of Kshs. 5.26 billion. This shortfall would impact the planned recruitment of 150 audit associates, estimated to cost Kshs. 123 million.
Hon. Samuel Atandi (Alego Usonga) questioned the request for additional funds for personnel emoluments, suggesting investing more in technology to reduce expenses. Gathungu acknowledged the importance of leveraging technology and noted that it has helped expedite audit reports and eliminate backlogs. However, she emphasized the continued need for recruiting and outsourcing additional personnel.
The Auditor General also submitted the Supplementary Estimates II for FY 2023/24, which had been reduced by Kshs. 275 million, including Kshs. 245 million related to the development expenditure for the Mombasa office project.
Earlier, the Parliamentary Budget Office briefed the Committee on the Supplementary Estimates II for FY 2023/24 and the 2024/25 Budget Estimates.