Billions Under Scrutiny as KNH, KEMRI and PPB Face Audit Storm
Billions of shillings tied to Kenya’s top public health institutions are now under intense parliamentary scrutiny.
Auditors uncovered missing land title deeds worth billions, unrecorded vehicles, irregular procurement practices, and unexplained revenue losses at:
-
Kenyatta National Hospital (KNH)
-
Kenya Medical Research Institute (KEMRI)
-
Pharmacy and Poisons Board (PPB)
Lawmakers warn that the scale of irregularities points to systemic financial control failures.
read:Nairobi County Workers Threaten Strike Over Unpaid September Salaries
KNH Audit Flags Sh36 Million Rental Loss
At Kenyatta National Hospital, auditors flagged a Sh36 million rental income loss from staff housing.
This came even after the hospital board approved a 10 percent rent increase.
Key concerns include:
-
Occupancy rate at only 60 percent
-
Rental income falling 21 percent below projections
-
Some houses earmarked for demolition despite rent increases
MPs questioned why rent was increased when revenue targets were already declining.
Procurement Concerns at KNH
Auditors also raised red flags over procurement.
Management used restricted requests for quotations to acquire cleaning materials instead of open competitive tendering.
Hospital officials described the shift to framework contracts as an administrative error. However, lawmakers demanded greater accountability.
Committee Vice-Chair Caleb Amisi emphasized that audit findings must lead to real reforms, not excuses.
KEMRI Missing Sh4 Billion Land Title
At KEMRI, MPs uncovered a missing title deed for a 2.4-hectare parcel of land in Nairobi valued at over Sh4 billion.
The committee heard that a private developer allegedly used the title as collateral for a bank loan.
Although the loan was reportedly repaid, the original title deed remains missing.
Conflicting explanations from the National Bank and the National Treasury deepened concerns.
Unrecorded Vehicles and Mortgage Fund
Lawmakers also discovered:
-
66 vehicles in use but not recorded in the asset register
-
A Sh143 million staff mortgage fund established without Cabinet Secretary approval
MPs rejected management’s explanation that valuation issues delayed asset registration.
They described the lapses as serious breaches of the Public Finance Management Act.
read:Ministry of Education Uncovers 50,000 Ghost Students in Kenya Audit
Pharmacy and Poisons Board Under Pressure
The probe extended to the Pharmacy and Poisons Board (PPB).
Committee Chair Emmanuel Wangwe questioned regulatory oversight after reports of patients failing to improve on locally sourced medication but recovering after obtaining the same drug abroad.
PPB CEO Ahmed Mohamed cited porous borders and staffing shortages as key challenges.
Auditors flagged additional issues:
-
Sh75 million land without a valid title deed
-
Undisclosed land in Machakos
-
Sh5.25 million spent on vehicle repairs without inspection reports
MPs said financial discipline must support effective drug regulation.
Parliament Demands Accountability
The Public Investments Committee (PIC-SSAA) is expected to issue firm recommendations.
Possible actions include:
-
Further investigations
-
Enforcement of financial controls
-
Referrals to oversight agencies
The audit revelations have placed public health governance under renewed scrutiny.
These institutions manage billions of shillings and deliver critical services to millions of Kenyans.
Parliament now faces pressure to ensure that reforms go beyond paperwork and restore public trust.
read:DCI Arrests Abbas Badru Omuyoma Over USD 280,000 Fake Gold Scam in Nairobi