A fresh audit review has exposed glaring financial irregularities at Pumwani Maternity Hospital, raising serious questions about accountability within Nairobi County’s health and finance systems.
The audit flags an irregular payment of KSh9,006,286 made to a local contractor for renovation works at the facility—one of the country’s busiest public maternity hospitals. However, the payment trail appears deeply flawed, with key supporting documents either missing or questionable.
According to the audit findings, the payment does not appear in the official pending bills register for the 2023/2024 financial year, casting doubt on its legitimacy. Even more troubling, auditors established that only photocopies of supporting documents were provided, while the original payment voucher—critical for verification—was reported missing.
In what raises further suspicion, an indemnity for the lost voucher was reportedly processed as far back as February 2020, yet no invoice was attached to validate the payment. This sequence of events has triggered concerns about possible manipulation of records or attempts to sanitize an irregular transaction after the fact.
The implications extend far beyond a single payment.
Auditors warn that due to such inconsistencies, the accuracy, completeness, and legitimacy of a staggering KSh87.2 billion in trade and other payables cannot be confirmed. This exposes Nairobi County to potential financial losses through penalties, legal disputes, and possible fraudulent claims.
“This is not just a documentation lapse—it points to systemic weaknesses in financial controls,” a source familiar with public sector audits said. “When original documents go missing and payments cannot be traced in official registers, the risk of fraud becomes extremely high.”
The audit further reveals that county officials attempted to justify the payment, stating that it was later included in pending bill lists for the 2023/2024 and 2024/2025 financial years. They also cited an indemnity form allegedly approved by the county treasury in line with procedures for misplaced financial documents.
Additionally, a memo referenced as NCC/FIN/DDM77/2020 was presented as confirmation that the renovation work had been completed and payment effected.
However, auditors remain unconvinced, noting that such explanations do not substitute for primary documentation, nor do they cure the fundamental breach in financial reporting standards.
Pumwani Maternity Hospital has long been a critical lifeline for thousands of mothers in Nairobi, making the revelations particularly alarming.
Any mismanagement of funds intended for its improvement directly impacts service delivery in a facility already grappling with high patient volumes and resource constraints.
The audit findings now pile pressure on Nairobi County leadership to explain how millions of shillings could be disbursed without proper documentation—and why internal controls failed to flag the anomaly in real time.
