Kilifi County’s management of special funds in the 2023/2024 financial year has come under sharp scrutiny from the Senate following audit findings pointing to unsupported expenditures amounting to Sh152 million.

The Senate County Public Investments and Special Funds Committee raised the red flag over irregular spending and repeated accounting lapses, which the Auditor-General flagged in multiple county-run initiatives.

During a session held on Thursday, August 8, 2025, and chaired by Vihiga Senator Godfrey Osotsi, Governor Gideon Mung’aro and his team were questioned on several financial inconsistencies.

The probe focused on the County Ward Scholarship Fund, Emergency Fund, Climate Change Fund, and the Microfinance (Wezesha) Fund.

Senator Osotsi voiced concern over what he described as a pattern of “basic accounting mistakes,” committed by professionals who are supposed to uphold strict financial standards.

“It’s disturbing that professionals in good standing with ICPAK are behind such lapses. The committee is considering reporting them to their disciplinary board,” he said.

The Auditor-General's report revealed Sh102.9 million in undocumented food purchases under the Emergency Fund, bursary allocations that could not be verified, and unauthorised overdrafts within the Scholarship Fund.

The Wezesha Fund also attracted criticism, with unsupported balances and over Sh49 million in non-performing loans.

Governor Mung’aro responded by distancing himself from direct responsibility, saying the issues were a result of poor record-keeping by some county officers.

He maintained that while the documentation was lacking, there had been no misuse of public money.

“I have consistently urged my team to support the audit process. I will act decisively against those who fail to comply,” he said, adding that the concerns raised were more about procedure than theft.

The committee hinted that disciplinary action could be recommended against the officials involved, with possible reports to the Institute of Certified Public Accountants of Kenya (ICPAK) for professional misconduct.

The Senate committee’s push for accountability highlights its oversight role in ensuring that public funds are managed properly at the county level.

The investigation into Kilifi’s financial practices comes at a time when national attention is focused on how counties use taxpayer money.

The Sh102.9 million flagged for food procurement and the Sh49 million in non-performing loans have placed Kilifi in the spotlight, with senators warning that recurring errors in county accounting will not be tolerated in future audits.