How Mystery Company Won Multimillion Security Tender in Nakuru County & Failed to Deliver

As Kenya grapples with corruption and misuse of public funds, it has emerged that Nakuru County awarded a security company a multimillion tender, which was later terminated.

In data seen by the Kenya Times, the mystery company was awarded a contract worth Ksh 4,977,624.91, and the tender was terminated following poor performance and substandard quality of service.

The company which was not identified by the Public Procurement Information Portal was hired to provide guarding services for the County Assembly of Nakuru starting July 7, 2022, to July 7, 2024.

The tender was terminated on January 17, 2023, after the company had already been paid a substantial sum from the Ksh5 million kitty to provide guarding services to the Nakuru County Assembly. “Poor performance and substandard quality of service,” it was reported as the cause leading to the termination.

This happens even as Kenyans learn of the gross financial misconduct in the country following revelations by Auditor General Nancy Gathungu.

A Mystery Company Won Multimillion Tender in Nakuru & Did Not Deliver — Members of the County Assembly of Nakuru. Photo/Nakuru County Assembly

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Nancy Gathungu Flags Counties with over 200 Counties

On September 4, 2024, Gathungu revealed that some counties have over 200 bank accounts, adding that they need no more than two revenue or expenditure bank accounts.

Appearing before the Senate County Public Investment and Special Funds Committee, Gathungu was asked to comment on how she audits counties like Migori County, which Senator Eddy Oketch noted has 200 bank accounts.

In response, the auditor general stated that having over 200 bank accounts was unnecessary for counties.

“Migori County has 200 bank accounts. In your audit process, do you audit all the bank accounts, or do you audit based on a mother presentation on the financial statements?” asked Senator Eddy Oketch.

Also read: Treasury Erroneously Sends Ksh288 M for World Bank Funded Project

Why Counties Having Many Accounts Affects Finances

Additionally, Gathungu said that having multiple accounts exposes the counties to the risk of losing track of funding and expenditure.

She advised that unless a development partner requests a separate bank account, two expenditure accounts ought to be enough.

“Apart from the requirement by development partners when they request for a separate bank account, I think we should minimize bank accounts. More than 10 accounts are too much. So, 300 or 200 don’t make sense to me.

“We should have one or two expenditure accounts. We don’t need 300. First of all, you lose track. You put money there and forget that there is money there,” she explained.