Mbita High School's principal, Kennedy Ojijo, has been implicated in a bank loan scandal as the Auditor General uncovers a tender fraud during his tenure

 

Kennedy Ojijo, the principal of Mbita High School, finds himself in a precarious situation. The recent Auditor General's report for the fiscal year ending June 30, 2024, has exposed significant corruption under his administration.

Stakeholders, parents, and the local community are now urging the Ethics and Anti-Corruption Commission to act swiftly and initiate further investigations aimed at apprehending and prosecuting him along with his entire Board of Management.

It is suspected that millions of shillings have been misappropriated, as the report indicates serious misconduct in tender processes and other fraudulent payments.

The stakeholders are now advocating for his immediate reassignment, citing that he has remained in the position for too long without any substantial infrastructure development, as funds intended for development have been misappropriated, funneled through selected contractors who are familiar to him and who provide substantial kickbacks.

The report indicates that Ojijo obtained a bank loan without the explicit consent of the ministry, contrary to legal requirements. The statement of receipts and payments shows a boarding and school fund total of Kshs.145,431,890, which, as detailed financial statements, includes LPG gas loan interest and principal amounts of Kshs.258,215 and Kshs.607,715, respectively.

Additionally, the total amount includes the principal and interest repayments for the School van loan, which are Kshs.863,468 and Kshs.135,722, respectively.

These loans were obtained without the necessary approval from the relevant Cabinet Secretary. This action contravenes Paragraph 3.7.1 of the Ministry of Education Circular, MOE.HQS/3/101181 (46), dated 7 February 2022, which provides guidelines for the implementation of Free Day Secondary Education (FDSE). It clearly states that schools are prohibited from entering into financial agreements, such as hire purchase and bank loans, without the explicit written consent of the Cabinet Secretary, as stipulated in Section 18 of the 4th Schedule of the Basic Education Act, 2013.

Moreover, the loan agreements detailing the principal amounts, interest rates, and repayment periods were not made available for audit verification. Consequently, the accuracy and completeness of the LPG gas loan principal and interest, as well as the van loan principal and interest, could not be substantiated.

The statement of receipts and payments, as presented in Note 8 of the financial statements, indicates infrastructure expenditures totaling Kshs.36,049,956. The following unsatisfactory issues were observed:

1.       Construction of Multipurpose Hall

The infrastructure development expenditure includes Kshs.7,603,085 in respect of construction of a Multipurpose Hall. However, the procurement was not supported by tender evaluation and award meeting minutes, duly executed contract agreement and priced bill of quantities.

 

2.       Ultra-Modern Computers Lab

The infrastructure development expenditure includes Kshs.1 0,1 57,874 spent on the construction of an Ultra-Modern Computer Lab. However, key procurement documents such as the tender advertisement, evaluation, award, acceptance, and priced bill of quantities were not provided. Additionally, there was no evidence that the supplied materials were inspected, recorded, taken to charge to store, and how they were issued to the contractor.

3.       Painting and Glasses Repair

The infrastructure development expenditure includes Kshs.1,53"l ,129 spent on painting and glass repairs. However, Management did not provide the supporting procurement documents, including tender evaluation and award report, acceptance, LPO/LSO, and inspection and acceptance reports.

4.        Procurement of New Furniture-Lockers, Chairs and Beds

The infrastructure development expenditure includes Kshs.8,346,226 in respect of procurement of new furniture, whose supporting procurement documents such as tender advertisement, evaluation and award report, notification and acceptance, LPO/LSO were not provided for audit. Further, there was no clarity on how the items were received and issued from the store.

5.       Construction of New Three (3) Classrooms

The infrastructure development expenditure includes Kshs.1 ,296,650 in respect to construction of new three (3) classrooms. However, evidence of tender advertisement, tender evaluation and award, notification and acceptance and duly executed contract agreement were not provided for audit. Further, certificate of work done were not provided for audit. 6.

6.       Construction of a 14-Door Pit Latrine

The infrastructure development expenditure includes Kshs.1 ,436,300 spent on the construction of a 14-door pit latrine. Project inspection on 3 April, 2025 revealed the project was complete and in use. However, it was not branded and some doors had fallen off, thus comprising their usability. Further, the expenditure was not supported by tender advertisement, tender evaluation and award report, notification and acceptance and duly executed contract agreement.

 

The receipts and payments statement indicates a total boarding and school fund amount of Kshs.145,431,890, which, as detailed in Note 9 of the financial statements, encompasses a local transport/traveling expense of Kshs.6,494,598.

Nevertheless, Management failed to keep an imprest register for all issued and returned imprests. Consequently, the accuracy, completeness, and appropriateness of the Kshs.6,494,598 expenditure on local transport or traveling, as well as the effectiveness of internal controls over local transport and traveling expenses, could not be verified.

The receipts and payments statement also shows Government grants for tuition and operational purposes amounting to Kshs.4,869,712 and Kshs.16,792,162, respectively, as outlined in Note 1 and Note 2 of the financial statements.

However, an examination of the records uncovered inconsistencies between the National Education Management Information System (NEMIS) and the School's records concerning student enrollment for the months of September 2023, January 2024, and May 2024.

According to NEMIS, the student counts for these months were 1,874, 1,946, and 2,102, while the School's records indicated 2,260, 2,246, and 2,246, respectively. The total capitation receipts for the three months, based on the NEMIS student numbers, amounted to Kshs.27,075,087, whereas the capitation calculated from the School's records totaled Kshs.30,744,850, leading to an unexplained underfunding of Kshs.3,669,764. In light of these circumstances, the accuracy and completeness of the Government grants for tuition and operations, amounting to Kshs.4,869,712 and Kshs.16,792,162 respectively, could not be substantiated.

The statement of receipts and payments, as detailed in Note 9 of the financial statements, indicates an amount of Kshs.145,431,890 pertaining to the boarding and school fund. Included within this total is Kshs.16,406,101 allocated for personnel emoluments.

However, an examination of selected staff files uncovered that critical documents were absent from their records, such as the KRA Tax PIN, NSSF, NHIF, a Certificate of Good Conduct from the Directorate of Criminal Investigations, colored passport-sized photographs, and bank account information. This situation is in violation of Paragraph 8.12 (1) of the Human Resource Policies and Procedures Manual for the Public Service, dated May 2016, which stipulates that a candidate upon first appointment must provide a National Identity Card, Birth Certificate, KRA Tax PIN, original academic and professional certificates duly authenticated by the issuing authority, a Certificate of Good Conduct from the Directorate of Criminal Investigations, a colored passport-sized photograph, and bank account details. Consequently, Management has failed to comply with the stipulations set forth in the Human Resource Policies and Procedures Manual for the Public Service, May 2016.