Auditor General Nancy Gathungu has issued a damning audit report exposing serious financial mismanagement at the Women Enterprise Fund for the year ending June 30, 2024. In her adverse opinion, she cites unaccounted transactions, inflated expenses, and missing documentation, raising red flags about the fund’s financial integrity and future viability.
Among the most alarming findings is the unaccounted Sh212 million processed through unauthorized mobile paybill numbers, despite a presidential directive requiring all payments to government agencies to be routed through a unified paybill system by August 10, 2023. Additionally, the audit revealed Sh34 million in undocumented gratuity payments and Sh20 million withdrawn without clear traceability. Discrepancies also emerged between the fund’s financial statements and ledger entries, with variances totaling Sh1.2 billion across key expense areas—including travel, board allowances, computer maintenance, and staff costs.
The report also flagged a Sh71 million loan default, with no evidence of legal recovery efforts. Losses at the fund ballooned to Sh330 million, representing a 49% drop in profitability compared to the previous year. Gathungu warned that the fund risks insolvency if corrective measures aren’t taken urgently. Other issues include undisclosed fixed deposit income, unreported assets, and failure to produce financial records for the loans and mortgage scheme, which showed no movement—indicating likely abandonment by beneficiaries. Furthermore, employee costs consumed 94% of revenue, far above the recommended 35%, while the board held an excessive 43 meetings in the year under review.
