MPs Question NaMATA’s Capacity Amid Financial Gaps

The Nairobi Metropolitan Area Transport Authority (NaMATA) is under pressure from lawmakers over serious financial irregularities and underperformance flagged in its audited accounts.

The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, grilled NaMATA officials over their ability to manage public funds and deliver on key transport projects.

The Committee examined the agency’s financial records for the 2019/20 to 2022/23 financial years and raised concerns about massive underfunding, poor budgeting, and questionable expenditures.

Appearing before the committee, NaMATA Director General Francis Gitau defended the Authority, saying most of the challenges stemmed from delayed funding and the transition from cash-based to accrual accounting systems. But MPs were not convinced.

One of the key issues raised was the 47% funding shortfall, where NaMATA received only Sh602 million against a budgeted Sh1.13 billion. Despite the budget gap, the authority still underutilized Sh466 million, something MPs said pointed to serious planning and execution failures.

“How can you plan effectively if you’re always shooting in the dark with funding?” asked MP Pkosing.

The committee flagged irregularities in the issuance of imprests, highlighting Sh7.7 million in outstanding advances by the end of the 2020 financial year. Some officers were issued fresh imprests before accounting for previous ones, a clear breach of public finance regulations.

NaMATA was also put to task over unexplained hospitality expenses totaling Sh3.9 million. Some of the payments were made to staff from other state departments that already had their own budgets. An additional Sh1.66 million in board expenses was posted in the wrong financial year.

Even more alarming was a reported over-expenditure of Sh1.8 billion in development funds, which exceeded the approved budget by 256%. Although the agency blamed the anomaly on its accounting system change, it failed to produce Treasury approvals to justify the spending.

Another issue that drew the committee’s attention was the payment of Sh23 million in acting allowances to staff who had been in temporary roles for more than four years—well beyond the six-month limit set by public service rules. These allowances were also not taxed, contrary to income tax laws.

MPs also criticized NaMATA’s continued use of manual accounting systems, warning that it left room for errors and possible mismanagement. Gitau responded that the agency was in the process of automating its systems and had already identified a service provider for the task.

The committee demanded clarification on Sh2.1 billion in pending trade payables, including Sh1.9 billion owed to a contractor for Bus Rapid Transit (BRT) works on Thika Road. Lawmakers warned that further delays in payment could attract penalties and slow down important transport projects.

While Gitau acknowledged most of the issues raised and promised corrective action—including stricter imprest controls, updated asset registers, and requests for more funds from the Treasury—MPs said NaMATA must do more to demonstrate financial discipline.

“The people of Kenya cannot continue to fund a system where accountability is always an afterthought,” said Pkosing. “NaMATA must streamline its operations and prove that it’s capable of managing metropolitan transport effectively and transparently.”

The committee directed the agency to submit all referenced annexes, including Treasury approvals, updated asset registers, and the list of new board appointments for further review.