Auditor-General issues Qualified Opinion for Nairobi County, highlights financial management progress

The report, which covers the financial year ending June 30, 2024, highlights key issues in financial management, governance, and internal controls within the Nairobi County Revenue Fund. However, it acknowledges that the financial statements were largely accurate despite certain material misstatements.

“…except for the effect of the matters described in the Basis for Qualified Opinion section of my report the financial statements present fairly, in all material respects the financial position of the County Revenue Fund - County Government of Nairobi City as at 30 June, 2024 and of its financial performance and its cash flows for the year then ended,” reads the report in part.

The Auditor-General commended the county for substantial improvements in public finance management. The report, divided into three key sections, evaluates financial statements, the lawful and effective use of public resources, and the adequacy of internal controls.

Additionally, the findings address critical governance challenges, including compliance with financial reporting frameworks and legal requirements. While the qualified opinion reflects some discrepancies, the overall assessment affirms notable progress in Nairobi County’s financial practices.

Stakeholders have been urged to address the highlighted gaps to further strengthen financial accountability and governance in Nairobi City. 

Between 2013 and 2017, the Auditor-General issued a disclaimer opinion. During the 2017-2022 period, an adverse opinion was given, while this year, the Auditor-General has issued a qualified opinion.