The National Assembly Public Investments Committee on Governance and Education (PIC-G & E) has for the first time started auditing secondary schools, flagging illegal bank borrowing, billions paid to the Kenya Secondary Schools Heads Association (KESSHA) and millions in uncollected fees dating back to 2010.
The committee, chaired by Luanda MP, Dick Oyugi Maungu, has been in Western Region since Monday conducting physical inspections of schools, and is now holding its sitting in Kisumu County to examine Auditor-General’s reports on schools for five financial years, from 2020/21 to 2024/25.
Several leading secondary schools in the region such as Ng’iya Girls, Maseno, Maranda, Nyabururu Girls`, Kisii High, Asumbi Girls, Homabay High School, Kanga, Bunyore Girls, Kisumu Girls and Chavakali Boys had their principals and senior principals summoned to appear before the committee to answer to various anomalies cited in the Auditor General`s report.
The scrutiny covered financial management and accountability, including budget implementation, expenditure, procurement, record keeping and compliance with public finance requirements, as part of Parliament’s oversight mandate.
The committee flagged Ng’iya Girls as a unique case where the board borrowed about Sh.50 million in 2015 towards construction of an administration block costing about Sh150 million without approvals from the Ministry of Education and the National Treasury.
While the current principal indicated the loan has since been cleared, Maungu said no principal should walk into a bank and take a facility for a public school without approval from the relevant bodies.
On KESSHA, Maungu said one school had paid about Sh6 million to the association over the period under review, while another had remitted approximately Sh5 million, which if extrapolated to all schools in the country runs into billions.
“If you convert them into all the schools in the country, there are billions going to KESSHA, and we want to find out whether KESSHA is a recipient of public money,” Maungu said.
He questioned how an organisation that is not a government entity could receive public funds without being subjected to the same scrutiny as public institutions.
“KESSHA is a private members’ organisation. The activities they are doing may be good and necessary, but the contributions are public funds. If it is public money, it must be accounted for,” he said, adding that the committee will summon KESSHA officials to explain how the money is used and under what legal framework it operates.
“We want to know why a private members’ club should enjoy public money yet its operations cannot be publicly scrutinized like those of a public institution,” he added.
On other queries, the committee cited excess supply of textbooks, with one school receiving 436 extra books while schools in Turkana, Mandera and Luanda lack books, and will summon Kenya Institute of Curriculum Development (KICD to explain such anomalies.
The committee also noted that millions in fee arrears dating back to 2010 that schools cannot recover after a directive barring withholding of certificates, should now be treated as bad debts through a waiver from Treasury.
Schools were also found to procure without qualified officers contrary to the Public Procurement and Asset Disposal Act.
Maungu said some school managers were also struggling to transition from the old school audit system to International Public Sector Accounting Standards IPSAS accrual accounting and need empowerment and training of bursars.
IPSAS are a set of global accounting rules designed for public sector entities, such as national, regional, and local governments, to prepare financial statements.
Other members present were Vice-Chairperson, Kasipul MP Boyd Ong’ondo Were, and MPs Karitho Kiili, Mwenje Mark, Eng. Thuddeus Kithua, Maurice Kakai, Chiforomodo Mangale, Alfah Ondieki, Francis Kipyegon , Narok Woman MP; Rebecca Noonaishi Tonkei, and Central Imenti MP Moses Kirima.
By Mabel Keya- Shikuku / Vallery Nyagaka
