The Auditor General has once again uncovered serious weaknesses in how public institutions are managed, this time exposing corruption and mismanagement at the Kenya Fishing Industries Corporation.
Based in Mombasa, the state corporation has been accused of draining millions of taxpayers’ money through irregular allowances, questionable fuel expenditures, and poor governance.
What emerges from the report is a clear picture of how weak oversight and lack of accountability can cripple an institution meant to serve the people.
One of the central figures in the scandal is former deputy director of fisheries, Mikah Nyaberi, who was seconded to the corporation in 2021 as acting chief executive officer.
According to the audit, Nyaberi unlawfully drew Sh250,000 every month as an acting allowance in addition to his regular salary.
The allowance was only supposed to run for six months, but Nyaberi continued to receive it for more than two years. By the Auditor General’s estimate, he pocketed over Sh6 million in irregular payments.
This was made possible because the Ministry of Mining, Fisheries, Maritime Affairs, and Blue Economy failed to appoint a substantive chief executive officer, leaving a loophole that allowed the allowances to continue.
The Auditor General noted that this went against public service rules, which strictly limit acting allowances to six months.
The report also highlights questionable procurement and spending practices.
Out of Sh41.6 million spent on goods and services, Sh2.4 million went to fuel and transport. However, there were no proper records to support these expenses, and no contract agreement could be traced for the local service provider allegedly supplying the fuel.
This directly violated procurement laws that demand full documentation of such transactions. In addition, the board of KFIC exceeded legal spending limits by allocating Sh14 million for its own expenses, amounting to nearly half of operations and maintenance costs.
This was far above the five percent ceiling set by a presidential directive, showing blatant disregard for financial regulations.
The Auditor General also pointed to deeper governance failures. KFIC does not have an approved staff establishment, meaning there is no structured way of determining the right number of employees or managing promotions and training.
This has left the corporation operating without order or direction, further undermining its effectiveness.
The National Treasury has already included KFIC among nine state corporations earmarked for dissolution, arguing that its functions are outdated and can be taken over by other government bodies. Its collapse mirrors the struggles of many state corporations weighed down by debt and mismanagement.
A Treasury report showed that pending bills across several entities had reached Sh94.4 billion by March 2024, underscoring the scale of the crisis.
For Kenyans, the Auditor General’s revelations are yet another reminder of how institutions meant to support economic growth can instead be turned into avenues for personal gain. While the planned dissolution of KFIC may stop further losses, the bigger challenge lies in ensuring accountability.
Those who unlawfully benefited from allowances, approved irregular spending, and failed in their oversight roles must face consequences. Without such action, the cycle of waste and corruption in state corporations will continue unchecked, leaving taxpayers to carry the burden.
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