Nearly 50 political parties have been accused of mismanaging public funds amounting to Sh601.93 million, according to a report by Auditor General Nancy Gathungu.
In her audit of political parties for the 2023/2024 financial year, Gathungu said the money was released under the Political Parties Fund but lacked proof of proper use. She noted that the parties failed to provide schedules or documentation showing how the funds were spent.
Out of the total flagged amount, Sh275.9 million relates to unsupported balances involving 16 parties, while Sh325.9 million was tied to cash management issues spread across 45 parties.
Reads the report: "The audit for the 2023/2024 financial year has identified several systemic issues affecting Political Parties. The issues include inaccuracies in financial reporting, lack of supporting documentation and weak internal controls. Additional concerns include poor governance practices, non-compliance with regulatory requirements, and limited assurance of value-for-money in the use of public funds."
The report further revealed that 10 political parties did not comply with the Public Sector Accounting Standards Board (PSASB) requirements.
They failed to use standardized reporting templates and submitted incomplete disclosures, inaccurate comparative information, and reports with presentation errors and omissions, including in Strategic and Performance Reporting.
Parties cited for failing PSASB standards include Safina Party, Ubuntu People’s Forum, United Democratic Movement, United Progressive Alliance, Kenya Social Congress, Maendeleo Democratic Party, National Ordinary People Empowerment Union, People’s Empowerment Party, Green Thinking Action Party, and Kenya National Congress.
On unsupported balances, the audit highlighted undocumented contributions, receivables, liabilities, prior year adjustments, and asset entries as the main causes. Missing schedules for member contributions, unverified borrowings, unsupported cash balances, and lack of fixed asset documentation were also listed among the gaps.
Among the worst performers was the Kenya African National Union (Kanu), which recorded the highest unsupported balances at Sh212,743,031. This comprised trade payables of Sh37,352,734 and borrowings or loans worth Sh175,390,297, none of which were backed by documentation.
Narc-Kenya was flagged for unsupported balances totalling Sh27,746,652.
These involved member contributions, receivables, payables, and cash balances that were presented without supporting schedules.
Wiper Democratic Movement was also cited for an unsupported balance of Sh14,032,082 arising from a prior year adjustment that lacked reconciliation documents.
The Sh325.9 million linked to 45 parties was flagged over anomalies in how the funds were managed. For instance, the report cited unexplained balances in the books of Jubilee Party amounting to Sh6,976,356.
