Parliament has put the Nairobi Metropolitan Area Transport Authority (NaMATA) on the defensive after a committee accused it of financial mismanagement, failure to follow accounting procedures, and exposing public funds to risk through poor systems and irregular spending.

NaMATA Director General Eng. Francis Gitau appeared before the Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, to respond to audit concerns covering the 2019/20 to 2022/23 financial years.

The committee questioned the Authority's handling of budgeted funds, internal controls, and accounting practices.

MPs were alarmed that NaMATA received only Kshs. 602 million against a budget of Kshs. 1.13 billion — a 47 percent shortfall — but still left Kshs. 466 million unspent. The lawmakers said this under-expenditure hurt service delivery and raised doubts about NaMATA’s ability to meet its mandate.

“How can you plan effectively if you're always shooting in the dark with funding?” asked Hon. Pkosing, demanding answers from the Authority’s leadership.

The committee also raised concern over Kshs. 7.7 million in unaccounted imprests at the end of the 2020 financial year. In some cases, new imprests were issued before previous ones were surrendered, going against Public Finance Management Regulations.

NaMATA came under further scrutiny over Kshs. 3.9 million in hospitality expenses, some of which were paid to State Department officers, even though their institutions had their own budgets. In addition, Kshs. 1.66 million in board expenses was recorded under the wrong financial year, a move that broke standard accounting procedures.

One of the most serious issues involved the Authority’s development spending, which went over budget by 256 percent — translating to Sh1.8 billion — without the required approvals from the National Treasury. NaMATA explained the excess was due to a transition from cash-based to accrual accounting, but failed to provide documentary evidence.

MPs also took issue with Sh23 million in acting allowances paid to staff who had been in those positions for more than four years, exceeding the six-month cap set under public service rules.

The payments were also untaxed, going against income tax laws.

The lawmakers criticised NaMATA for continuing to use manual accounting systems, saying this opened the door to manipulation, errors and lack of transparency. Eng. Gitau told the committee that automation was in progress and a vendor had been identified to implement the new system.

Another area of concern was the Sh2.1 billion in pending bills, with Kshs. 1.9 billion owed to a contractor working on the Bus Rapid Transit (BRT) project along Thika Road. MPs warned that delays in payment could lead to penalties and disrupt important infrastructure works.

Gitau admitted to most of the audit concerns and said steps were being taken to improve operations, including better control of imprests, updating the Authority’s asset register, and requesting supplementary funding from Treasury.

But MPs insisted that fixing the system could not wait.

“The people of Kenya cannot continue to fund a system where accountability is always an afterthought,” said Hon. Pkosing. “NaMATA must streamline its operations and prove that it's capable of managing metropolitan transport effectively and transparently.”

The committee directed the Authority to present all supporting documents referred to in its responses, including Treasury approvals, updated asset registers, and recent board appointments.