Accountants sound alarm over Sh1.7tr unaccounted public expenditure
Business
By
Joackim Bwana
| Nov 19, 2025
The Institute of Certified Public Accountants of Kenya (ICPAK) has raised concerns over the rise in unaccounted for public expenditure that has now ballooned to Sh1.7 trillion.
ICPAK Chairman Elizabeth Kalunda said the unaccounted funds stem from unsupported documentation, pending bills, and irregular procurement processes.
Prof Kalunda said ICPAK Public Audit Review Report revealed that 35 per cent of counties received qualified or adverse audit opinions, highlighting the ongoing governance and leadership inefficiencies despite ongoing reforms.
Speaking on Tuesday in Mombasa during the ICPAK 42nd annual seminar, Kalunda noted that public debt now exceeds 70 per cent of GDP, straining fiscal space amid rising inflation, unemployment, and revenue pressure.
She said accountants need to move beyond merely recording transactions to becoming the custodians of institutional trust.
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“When accountants uphold integrity, economies attract investment, public services are enhanced, and citizens’ lives are improved. That is why our theme, From Transactions to Transformation: Accountancy Impacting the World,' is relevant and urgent,” said Kalunda.
According to the Ethics and Anti-Corruption Commission EACC Chairman David Oginde, 80 per cent of corruption scandals happen in procurement, where accountants are directly involved.
Oginde said in every corruption scandal the agency handles, an accountant is involved in the cover-up.
He said that Human Resources (HR) and accountants fuel the existence and payment of ghost workers in counties.
“In every corruption case we have handled, there is an accountant involved. HR creates ghost workers, while the accountants pay them,” said Oginde.
He urged accountants to uphold integrity and stop covering up graft by cooking the books for corrupt leaders.
The EACC chair commended the courts for pronouncing themselves on matters of corruption that have seen the sealing of loopholes used to evade accountability.
“We are happy with court rulings that have pronounced themselves on matters of corruption. We commend the court for sealing technical loopholes to escape accountability,” said Oginde.
The chair highlighted a case of ghost workers, which led to the syphoning of Sh100 million from the county coffers.
He said the CEO, the HR and the accountant schemed to employ ghost workers and pay themselves the salaries.
“The CEO, HR and finance had formed an unholy trinity to loot the county. One of the workers was a cobbler on a Sh10,000 monthly salary. The cobbler was, however, registered as a PhD holder and was being paid Sh200,000,” said Oginde.
He also revealed personal encounters with attempts at corruption, confessing he has been approached with offers of money to stop investigations involving prominent individuals.
He reiterated his commitment to integrity, asserting that the EACC will not be deterred.
"Where I sit, if I wanted to make money, my friend, I would, but we must choose integrity," Oginde stated.
"We sit in a good place, and the people we pursue have stolen a lot of money."
He emphasised that simply pursuing "thieves and robbers" is insufficient to solve the nation's corruption problem; lasting change requires that all professionals embrace ethical practice.
The EACC, Oginde said, continues to work with professional bodies like ICPAK to embed integrity in self-regulation mechanisms.