National Assembly’s PIC-SSAA probes KIPPRA over financial anomalies in audit examination

National Assembly’s PIC-SSAA probes KIPPRA over financial anomalies in audit examination

𝐓𝐮𝐞𝐬𝐝𝐚𝐲 𝟐𝟔𝐭𝐡 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫, 𝟐𝟎𝟐𝟒

The National Assembly's Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA), chaired by Vice Chairperson Hon. Caleb Amisi (Saboti), today held a session, to examine the financial audits of the Kenya Institute of Public Policy Research and Analysis (KIPPRA) for the 2018/19 to 2022/23 financial years. KIPPRA was represented by Acting Executive Director Ms. Eldah Onsomu and Director of Finance Mr. Teddy Bett.

Key issues raised included improper handling of interests, non-compliance with tax regulations, unsupported vehicle maintenance expenses, and the controversial ownership of a 2.57-hectare parcel of land in Kabete.

One contentious issue was KIPPRA's expenditure of Ksh 32.4 million on subsistence allowances, which lacked adequate documentation. Hon. Amisi criticized the omission, stating, “It is difficult to ascertain the validity of imprest holders and amounts without proper records.” KIPPRA defended itself, claiming a new Enterprise Resource Planning (ERP) system now addresses these concerns. However, Ndhiwa MP Hon. Martin Peters Owino dismissed the explanation, accusing KIPPRA of “cooking records.”

The Committee also flagged non-compliance with tax laws, including the failure to remit Ksh 711,952 in VAT deductions on payments for conference facilities. Othaya constituency MP.Hon. Wambugu remarked, “As a government institution, KIPPRA should uphold full tax compliance—no excuses.” Finance Director Mr. Bett assured the Committee that KIPPRA is now fully compliant and issued tax compliance certificates.

Another point of contention involved unsupported motor vehicle expenses totalling Ksh 1.8 million, including Ksh 530,903 for vehicle repairs. MPs questioned the lack of documentation and justification for using Toyota Kenya instead of competitive garages. Mr. Bett defended the choice, citing better service and genuine spare parts but admitted, “Supporting documents were not provided to the Auditor-General.”

The unresolved ownership of KIPPRA’s Kabete land also came under scrutiny. Although KIPPRA holds the title deed, the land’s development is disputed by the Directorate of Veterinary Services, which fenced it off, citing operational disruptions. The dispute halted a headquarters construction project in 2016. “This has caused a ballooning cost of rent for the Institute,” Ms. Onsomu noted.

The Committee concluded that systemic inefficiencies and governance gaps require urgent attention.