Seven counties, including Nairobi, Garissa and Isiolo, have been cited in an audit report for failing to account for more than Sh880 million in bursary funds.

The findings by Auditor-General Nancy Gathungu point to widespread irregularities in the allocation and management of bursaries and scholarships, with several counties unable to provide supporting documents or reconcile their financial records.

According to the report, counties collectively received Sh11.12 billion for bursaries and scholarships but spent only Sh9.8 billion, leaving an unspent balance of Sh1.3 billion.

Among those flagged, Nakuru recorded Sh382.9 million in irregularities, Nairobi Sh301.4 million, and Kakamega Sh128.9 million. Others include Garissa with Sh5.3 million, Taita Taveta and Isiolo with Sh24 million each, and Samburu with Sh44.1 million.

In Isiolo, auditors uncovered an unreconciled Sh30 million difference after the Scholarship and Bursaries Fund’s statements showed Sh70 million, while the County Executive’s records reflected Sh40 million.

“Seven (7) Counties failed to provide supporting documents for bursary allocations and acknowledgements amounting to Sh886,757,332,” the report states.

The audit also criticised Kericho and Bomet for failing to distribute bursaries equitably, risking the exclusion of deserving students.

In Narok, Sh886,000 meant for bursaries was instead used on imprests and unrelated expenses. In Kiambu, cheques worth Sh1 million remained uncollected for extended periods, becoming stale and unused.

Overspending and idle funds
Some counties overspent their bursary allocations, including Kiambu by Sh92.9 million, Mandera by Sh44.9 million, and Kericho by Sh16.5 million, raising concerns about budget discipline.

In contrast, Migori had the highest unspent balance at Sh1 billion, followed by Wajir with Sh78.3 million and Tana River with Sh61.3 million, pointing to inefficiencies and possible misallocation.

Discrepancies were also flagged in three counties. In West Pokot, there was an unreconciled Sh8 million difference between financial performance statements and budget comparison figures.

Nairobi faced irregularities in both executive and ward bursary management.

Applicants untraceable and guideline breaches
The audit identified Sh3.7 million awarded to applicants who could not be traced. Some application forms lacked required committee and head teacher recommendations.

In Nairobi, Sh301.4 million was disbursed in the 2023/24 financial year, Sh170 million for ward bursaries and Sh131.4 million for executive bursaries, to 5,339 executive scholarship recipients and 29,775 ward bursary beneficiaries, but the institutions involved failed to provide acknowledgement receipts or confirmation letters.

In Lamu, Sh126.9 million meant for bursaries and scholarships was instead redirected to other educational activities.

The report notes, “The activities funded by the county executive, including provision of bursaries to needy students in Secondary Schools, Colleges and Universities, fall under the mandate of the national government.”

Kitui was also questioned for spending Sh84 million on bursaries for secondary, tertiary, university and special education students despite the function belonging to the national government.

Elgeyo Marakwet spent Sh14.5 million on nursing students at the Kenya Medical Training College (KMTC) even though the county already had an education fund for needy students.

The audit revealed some KMTC students benefited twice, with no proof of vetting or acknowledgement from beneficiary colleges.

“Management did not provide evidence on how the vetting for the bursaries was done, and no acknowledgements from the beneficiary colleges were obtained for the fee paid,” the audit warns.

In Migori, auditors questioned Sh120 million transferred to the ward development fund for bursaries and raised concerns over Sh23 million linked to the Inua Elimu scholarship programme.

The report follows similar concerns raised recently by the Auditor-General over misuse of bursary funds in several constituencies, exposing persistent weaknesses in bursary administration at the county level.