The National Assembly’s Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA) has uncovered widespread financial mismanagement and procurement irregularities at Kenyatta National Hospital (KNH), Kenya Medical Research Institute (KEMRI) and the Pharmacy and Poisons Board (PPB).
In an update on Wednesday, February 18, Parliament said the findings were presented during sessions at Bunge Tower, Parliament Buildings, where lawmakers reviewed Auditor-General’s reports for the 2022/2023 and 2023/2024 financial years.
Chaired by Navakholo MP Emmanuel Wangwe, the committee said it had exposed potential losses running into billions of shillings, citing missing assets, vanished title deeds and unauthorized financial decisions across the three public health institutions.
At KNH, MPs flagged Ksh36 million in lost rental revenue even as the hospital’s Board approved a 10 per cent rent increase on decades-old residential units, some of which were earmarked for demolition.
The committee questioned the logic of increasing rent when occupancy stood at 60 per cent and income had already fallen 21 per cent below projections.
“If you’ve already lagged 21 per cent at 60 per cent occupancy, who exactly is this increase benefiting?” Wangwe posed, warning that the burden would ultimately fall on tenants.
Additionally, procurement processes at the hospital came under scrutiny after auditors flagged the use of restricted requests for quotations in the purchase of cleaning materials, bypassing open competitive tendering.
Management described a post-award shift to framework contracts as ‘erroneous,’ but lawmakers questioned whether the move was deliberate, particularly during the COVID-19 period.
“These audits are not cosmetic. They flag issues to strengthen oversight and ensure public funds are protected,” the vice chairperson, Saboti MP Caleb Amisi said.
At KEMRI, lawmakers raised alarm over the disappearance of a title deed for a 2.4-hectare parcel in Nairobi valued at over Ksh4 billion.
A private developer reportedly used the title as collateral for a bank loan without evidence of authorization.
Although the loan has since been repaid, the title deed remains unaccounted for, with conflicting claims between the National Bank and the National Treasury over its custody.
The committee also faulted KEMRI for failing to record 66 motor vehicles in daily use and insured by partners. Management attributed the omission to unresolved donation valuations, but the explanation was rejected by MPs.
Additionally, lawmakers questioned a Ksh143 million mortgage fund established without mandatory Cabinet Secretary approval, contrary to the Public Finance Management Act.
At PPB, the committee highlighted regulatory weaknesses that could expose Kenyans to substandard medicines.
Wangwe recounted the case of a patient who failed to recover after receiving medication locally but improved after sourcing the same drug from Dubai.
“When the financial and management engine is crumbling, even the output will be wondering,” he cautioned.
PPB Chief Executive Officer Ahmed Mohamed admitted surveillance gaps due to porous borders and understaffing.
Auditors further flagged Ksh75 million tied to headquarters land without a valid title deed at the time of audit, undisclosed land in Machakos, and Ksh5.25 million spent on vehicle repairs without mandatory inspection reports.
This comes months after the National Assembly’s Public Investments Committee on Governance and Education raised concerns over widespread financial irregularities across several universities and technical institutions.
In a session on Wednesday, December 3, 2025, the committee stated that the institutions must strengthen accountability systems to protect public funds and restore discipline in financial management.
Chaired by Bumula MP Wanami Wamboka, the committee pressed multiple institutions over unresolved audit queries, missing documentation and longstanding debt burdens that collectively surpass Ksh1 billion.
The committee said it issued a personal penalty to a procurement officer at Ziwa Technical Training Institute and questioned the performance of its Finance Officer, who has served for nearly ten years, after uncovering troubling audit gaps.
It added that the matter stemmed from missing audit records, unexplained Mpesa overdrawing and misleading submissions.
MPs told Ziwa Technical Training Institute management that missing financial statements for the 2017/2018 audit cycle could not be excused by the deaths of former principals.
They emphasised that institutions must maintain continuity through proper record-keeping.
At the same time, MPs said Maasai Mara Technical & Vocational College will be recalled because it failed to present key officials required to address outstanding audit questions.
The committee also reported that Masinde Muliro University’s outstanding student debtor balances exceed Ksh800 million and noted that the institution proposed a write-off for part of the amount.
MPs also raised concerns over an inactive group of postgraduate debtors and a stalled infrastructure project.
In addition, legislators said Matili Technical Training Institute has a significant fee balance owed by students and highlighted previous staffing disparities.
“Matili Technical Training Institute reported a Ksh46 million fee debt, prompting calls for strengthened debt collection. The Committee further questioned a past staffing imbalance where 120 of 130 employees belonged to one ethnic group. Management reported progress, citing 80% compliance under a new policy,” the report revealed.
