A new audit has revealed troubling financial mismanagement in key Nairobi County projects, including the Dishi na County school feeding programme and the affordable housing initiative spearheaded by Governor Johnson Sakaja.

The Auditor General’s report for the financial year ending June 2024 has exposed widespread irregularities and unexplained expenditure running into billions of shillings across several projects under the county executive.

One of the major concerns raised is in the implementation of the Dishi na County programme, where the county paid the service provider more than what had been agreed upon in the contract.

Although the cost per plate was set at Sh25—with learners expected to contribute Sh5—the county went ahead and paid the full Sh25, instead of the Sh20 balance it was supposed to top up.

“A review of invoices and payments made indicated that the organisation invoiced a total of Sh345.96 million at a rate of Sh25 per plate and was paid Sh262.26 million during the financial year under review yet it was noted that learners paid the organisation the Sh5 directly per plate for the meals provided,” the report states.

“Therefore the County Executive should have paid the organisation Sh20 per plate, as part of the contract cost of Sh25. Instead, the County paid an amount of Sh25 for each plate served,” the report adds.

The Auditor General also flagged the manner in which Food for Education was brought in for a pilot phase of the programme, noting that there was no formal agreement or signed Memorandum of Understanding between the company and the county government.

This made it difficult to determine how the engagement was reached.

Further concerns were raised over a Sh145.7 million donation (equivalent to Euro 1,005,000) from the Embassy of France to support Food for Education in delivering hot meals to 25,000 vulnerable children in Nairobi’s public ECDE and primary schools.

The audit says there is no accountability for the funds.

“The audit could not ascertain the accountability for these funds. In addition, there were no established measures by the County Executive regarding the management of donations received, as there were no guidelines in place for handling such donations,” the report reveals.

In addition to financial issues, the physical condition of some kitchens built under the programme has come under scrutiny. A site visit to the Toi Primary School kitchen in October 2024 found visible cracks just one year after completion, no electricity meter, and no county-supplied water. The report also pointed to poor workmanship, disconnected gas pipes, and broken pavements.

At the Central Kitchen at Mutuini Primary School, the audit found that meals were being provided to 17 schools, including five secondary schools, with each child paying Sh30 per plate—well above the intended rate—making the arrangement irregular.

On the county’s affordable housing initiative, the report reveals that contracts worth Sh31 billion were signed for projects in Woodley Estate Phase One and Kariobangi North Estate Phase One without being cleared by the Attorney General, as required by procurement law.

This, the report says, breaches Section 134(2) of the Public Procurement and Asset Disposal Act, 2015, which requires all contracts exceeding Sh5 billion to be reviewed and cleared by the Attorney General before signing.

Additionally, the Auditor General flagged concerns in other areas of Nairobi County’s expenditure, including the management of executive scholarships, ward bursaries, procurement of insurance and consultancy services, and street lighting.