MPs Question KLRC Over Sh2.1 Million Unauthorised Expenditure

Members of Kenya's Parliament have questioned the Kenya Law Reform Commission (KLRC) regarding Sh2.1 million in expenditure that was incurred without the necessary authorization, as warned by the Auditor-General about the commission's failure to follow budget reallocation procedures. The Public Investments Committee on Governance and Education, part of the National Assembly, raised these concerns while reviewing audit queries spanning the 2018/19 to 2024/25 financial years.

They focused on KLRC's activities, repairs, and maintenance costs following the Auditor-General's report of expenditures exceeding approved allocations. The Auditor-General reported that KLRC spent Sh20.6 million against an approved budget of around Sh18.5 million, resulting in an over-expenditure of Sh2.1 million, or 11 percent.

Additionally, KLRC spent about Sh3 million over its approved allocation of Sh2.6 million for repairs and maintenance, leading to an excess expenditure of approximately Sh400,000, or 15 percent. The Director of Audit at the Auditor-General, Margaret Wambui, informed MPs that this additional spending had not undergone the required approval process, stating that KLRC should have sought approval from the commissioners before transferring funds between expenditure lines.

KLRC officials defended the expenditure, arguing that the commission had not exceeded its overall approved budget. However, MPs disputed this claim, emphasizing that the Committee was investigating specific expenditure lines flagged by the Auditor-General, not KLRC's overall budget. Committee Chair Dick Maungu stressed that public institutions must adhere to approved allocations and secure authorization before reallocating funds.

MPs questioned the exact amounts spent and the need for supporting documents to verify the expenditure process. KLRC's Head of Finance, Cornelius Musangi, explained that the expenditure initially received approval but was later reclassified following Auditor-General recommendations during the audit. However, the Auditor-General's representatives maintained that the primary issue was the lack of formal approval for the budget reallocation.

MPs demanded receipts and evidence showing that the expenditure had been ratified by the commission, to which Musyimi pledged to provide minutes demonstrating the commission's subsequent approval of the expenditure.