Government to surcharge officials linked to public funds loss

The government will surcharge officials found responsible for the loss of public funds, Chief of Staff Felix Koskei has said.

In a dispatch to Principal Secretaries, Chairpersons and Chief Executive Officers of Independent Constitutional Commissions and Offices and state corporations and agencies, Koskei said the move aligns with constitutional provisions and audit findings.

He explained that disciplinary action would be taken against those implicated, citing Articles 226(5), 201(d), and 232(b) of the Constitution, which mandate accountability in public financial management.

“Officials found culpable in the loss of public funds will be held accountable in line with audit findings,” said Koskei.

The directive follows a Cabinet decision made on Monday, September 17, 2024, approving the implementation of surcharges against public officials whose actions or omissions result in financial losses.

Koskei noted that Section 74 of the Public Finance Management Act, 2012, empowers accounting officers to take disciplinary action against officials involved in improper conduct.

At the same time, he observed that all affected officials would be subjected to due process before any surcharges are imposed.

“The process will adhere to fair administrative action procedures as required by law,” noted Koskei.

Accounting officers across ministries and agencies have been directed to submit reports detailing actions taken under the directive by Monday, April 14, 2025.

Koskei explained that the reports would be reviewed to ensure compliance with the government’s financial accountability framework.

Treasury is expected to issue further guidelines on implementing the surcharge process.