Nandi Governor Stephen Sang has attributed the county’s revenue collection failures to staff shortages and the disruptive transition to the Social Health Authority (SHA).
Speaking before the Senate County Public Investments and Special Funds Committee, Sang and his executive faced intense questioning over what lawmakers described as systemic financial mismanagement and legal negligence across key county institutions.
The hearing, chaired by Sen. William Kisang, focused on the operations of Kapsabet Nandi Water and Sanitation Company, Kapsabet Municipality, and the Kapsabet County Referral Hospital (KCRH).
The audit report for KCRH, which received a qualified opinion, became the main focus due to glaring deficiencies, including a significant breach of data protection laws.
Senators were alarmed that the hospital lacked a personal data retention schedule and had no published policy guiding the management of sensitive patient information.
Sen. Raphael Chimera warned, “This executive is sitting on a legal time bomb by processing sensitive medical history and bank details without any regard for the Data Protection Act.”
The committee also probed a Ksh 8.9 million loss linked to irregular waivers. Sen. Kisang cited Section 159 of the Public Finance Management Act, 2012, which mandates that all waivers must be recorded and reported to the Auditor General.
He emphasized that this provision exists “to prevent the looting of public funds under the guise of charity.”
The hospital’s failure to provide minutes or documentation for these waivers suggested, according to Kisang, a “complete breakdown of fiscal discipline” and serious risk of public fund misappropriation.
Questions further arose over the reported “nil balance” for revenue from rented housing facilities, despite the hospital owning 16 junior and 18 senior units. Sen. Agnes Kavindu expressed disbelief at the missing revenue, stating,
“It is mathematically impossible and logically absurd to report zero revenue when your own records show staff are occupying these houses.” This anomaly raised serious doubts about internal revenue tracking and the integrity of county accounting systems.
Governor Sang defended the administration, explaining that chronic staffing shortages had strained operations and complicated revenue collection.
He also cited the transition from the National Hospital Insurance Fund (NHIF) to SHA as a major disruption, stating that it made it difficult to reconcile claims and properly account for housing rents.
Sang added that the county is now implementing a check-off system to regularize housing records and streamline revenue collection.
Despite these explanations, senators remained unconvinced.
They highlighted the Auditor General’s conclusion that internal controls and risk management mechanisms in Nandi County are largely non-existent, leaving the county exposed to legal liabilities and financial losses.
The committee’s scrutiny underscores growing concerns over governance and accountability in the management of public resources, placing pressure on the county leadership to take immediate corrective action.
