The auditor general has revealed financial mismanagement at Kericho National Polytechnic, with Principal Sammy K. Cheruiyot being held accountable

 

The most recent auditor general's report for the fiscal year ending June 30, 2024, which was signed by Chief Principal and Governing Council Secretary Sammy K. Cheruiyot on May 26, 2025, has uncovered significant financial irregularities.

lnaccuracy of Use of Goods and Services

The financial performance statement indicates the utilization of goods and services totaling Kshs.138,350,260.

This total encompasses an administrative expense amounting to Kshs.26,911,241, as detailed in Note 9 of the financial statements.

However, there is a discrepancy between the administrative expense figure and the balance in the supporting schedules, which is Kshs.27,209,677, leading to an unexplained variance of Kshs.298,436.

Consequently, the accuracy and completeness of the goods and services expense of Kshs.29,911,241 reported in the financial performance statement could not be verified.

lnaccuracy of Governing Council Allowances

The financial performance statement indicates the utilization of goods and services totaling Kshs.138,350,260. This total encompasses an administrative expense amounting to Kshs.26,911,241, as detailed in Note 9 of the financial statements.

Nevertheless, there is a discrepancy between the administrative expense figure and the balance in the supporting schedules, which is Kshs.27,209,677, leading to an unexplained variance of Kshs.298,436.

Under these circumstances, the accuracy and completeness of the goods and services expense of Kshs.29,911,241 reported in the financial performance statement cannot be verified.

 

lrregular Transfer of Funds to Mentored lnstitutions

The financial position statement indicates receivables from the mentored institution amounting to Kshs.2,201,677, which pertains to transfers to Kericho Township Technical and Vocational College totaling Kshs.2,446,308, as detailed in Note 18 of the financial statements, minus an impairment allowance of Kshs.244,631.

This situation is in violation of Section 43 (1) (a) of the Public Finance Management Act, 2012, which stipulates that an accounting officer must not authorize the transfer of funds that have been allocated for transfer to another government entity or individual.

Additionally, the Board approvals, acknowledgment letter, and transfer agreements between the mentor and mentee institutions were not made available for audit examination.

Moreover, the receivables have remained outstanding for over three (3) years, and no actions have been taken to ensure complete repayment. Under these circumstances, Management has violated the Law.

lrregular Long Outstanding Loan Repayment to Belgut Technical and Vocational College

The financial position statement indicates that trade and other payables from exchange transactions amount to Kshs.34,803,469. This total includes payments made to Belgut Technical and Vocational College, which sum to Kshs.813,100, as detailed in Note 23 of the financial statements.

During the financial year 2021/2022, the Polytechnic secured a short-term loan from the Mentee Institution. However, the necessary documentation for audit review, including the Board of Governors' approval, the loan agreement specifying the date the loan was acquired, the principal amount, the applicable interest rate, and the Cabinet Secretary's approval, was not provided.

This omission is in violation of Section 51 (2) of the Public Finance Management Act, 2012, which mandates that a National Government entity must obtain the Cabinet Secretary's approval for any proposed borrowing, refinancing, and loan repayment programs. Consequently, Management has breached the law.

lrregular Establishment of Satellite Campuses

Records indicate that the Polytechnic has established three satellite campuses in Kericho County.

However, the inspection reports, licenses, registration certificates, and accreditation approvals issued by the Technical and Vocational Education and Training Authority were not made available for audit verification.

Additionally, due diligence reports conducted prior to the decision to establish the three campuses, the current number of students at each satellite campus, and the corresponding approved training programs were not submitted for audit examination.

This omission contravenes Sections 7(k) and (r) of the Technical and Vocational Education and Training Act, 2013, which require the Technical and Vocational Education and Training Authority to inspect, license, register, accredit training institutions, and approve the introduction of new training programs in institutions under the Technical and Vocational Education and Training Board. In light of these circumstances, Management has violated the Law.

Non-Compliance with the Law on Ethnic Diversity

An examination of the personnel records revealed that the Polytechnic employed a total of one hundred and five (105) individuals, of whom ninety-six (96), representing 91% of the total workforce, belonged to a single ethnic group.

This situation contravenes Section 7(2) of the National Cohesion and Integration Act, 2008, which stipulates that no public institution shall have more than one-third (1/3) of its employees from the same ethnic community. Consequently, Management was found to be in violation of the law.