Members of Parliament (MPs) have proposed that the tender to audit the Office of the Auditor-General be conducted internationally to avoid potential conflicts of interest with local auditing firms.
Local audit firms have declined to bid for the tender, citing possible conflicts of interest. The National Assembly’s Public Accounts Committee argues that the law should be reviewed to allow the Accounting Officer of Parliament to advertise the tender outside of Kenya.
“By doing so, we can attract more audit firms and eliminate concerns about conflicts of interest when local firms are asked to bid on auditing the Office of the Auditor-General,” said Butere MP Tindi Mwale, who chairs the committee.
Article 226(4) of the Constitution mandates that the accounts of the Office of the Auditor-General be audited by a professionally qualified accountant appointed by the National Assembly.
While moving a motion to approve the appointment of PKF Kenya LLP to provide external audit services for the Office of the Auditor-General (OAG) for the financial years 2022/23, 2023/24, and 2024/25, Mwale highlighted that the committee’s investigation revealed that very few firms typically bid on the tender.
This time, only two firms—PKF Kenya LLP and Nelson and Francis LLP—submitted bids, with PKF Kenya LLP winning the tender at a cost of Sh25.5 million.
“The main reason for this situation is that many independent audit firms avoid bidding due to concerns about maintaining professional distance, as they may have been previously engaged by the Office of the Auditor-General for other outsourced tasks,” Mwale explained. He noted that Parliament had previously engaged PKF and was awaiting its report for the previous years before submitting it to the House.
“As a committee, we are committed to providing thorough oversight of this important office to enhance its operational efficiency and ensure value for every coin appropriated by this House,” he added.
Mwale stressed the importance of accurate audit reports to ensure the prudent use and monitoring of taxpayers’ funds. “To achieve this, we must engage a reputable audit firm that can provide a true picture of public expenditure. By supporting this report, we enable PKF to audit the Office of the Auditor-General and deliver the feedback and productivity we expect in the public sector,” he stated.
Funyula MP Ojiambo Oundo also emphasized the need to explore alternative mechanisms, even if it involves extending the tendering and procurement process beyond Kenya’s borders, to ensure meaningful competition.
