State irregularly draws Sh2.3 Billion from AU subscription fund - Auditor General Nancy Guthungu

Nairobi, Kenya – February 24, 2025- Auditor General Nancy Gathungu has raised concerns over an unauthorized transfer of Ksh2.3 billion from the African Union and Other International Organizations Subscription Fund to the National Treasury.

The audit report, released on February 24, 2025, highlights the absence of supporting documentation or approvals for this surplus remittance, suggesting potential mismanagement of funds designated for international obligations.

The report indicates that the transferred amount was not utilized as intended, which contravenes Regulation 5 of the Public Finance Management (African Union and Other International Organizations Subscription Fund) Regulations, 2017. This regulation mandates that payments from the fund be exclusively for contributions to the African Union and other international organizations to which Kenya has financial commitments.

Further scrutiny reveals that, until 2017, Kenya managed its subscriptions to international organizations through various legislative frameworks, including the International Finance Corporations Act and the African Development Bank Act.

The establishment of the consolidated subscription fund in 2017 aimed to streamline these payments. However, the Auditor General notes that previous laws have not been repealed, posing risks of multiple payments and financial inefficiencies.

This revelation comes shortly after the government faced questions regarding the allocation of funds during the recent African Union Commission elections, where Kenya’s candidate, Raila Odinga, withdrew in the sixth round. The Auditor General’s findings have prompted calls for increased transparency and accountability in managing Kenya’s financial obligations to international bodies.

The National Treasury is expected to address these audit queries, as concerns mount over the potential misappropriation of funds intended for international subscriptions.