PKF set to audit Kenya's Auditor General as part of lucrative contract

01 August 2019 2 min. read

Professional services firm PKF Kenya has won out over a number of other firms to obtain the contract to audit the accounts of Kenya’s Auditor General. The contract is worth more than Sh 41 million, but remains subject to approval from members of parliament (MPs) in Kenya, who have rejected a candidate previously.

The constitution prescribes that an external professional auditor review the books of the Auditor General, to which end a tender was released requesting bids from consulting and professional services firms. The lucrative tender initially failed to draw bids, although this scenario was later rectified.

Over time, bids were submitted by a number of illustrious firms, including Nelson & Francis Associates, Mazars, Ronalds & Associates, Ernest & Martin Associates, Ambale & Company and Kiarie Kangether & Associates. PKF Kenya’s bid was considered the most suitable amongst this entire list.

PKF set to audit Kenya's Auditor General as part of lucrative contract

“The committee recommends to the National Assembly to approve the award of External Audit Services for the Office of the Auditor-General for financial years 2014/15, 2015/16, 2016/17 and 2017/18 to M/s PKF Kenya pursuant to provisions of Article 226(4) of the Constitution,” stated MP Opiyo Wandayi to parliament.

The firm’s appointment is still subject to approval from the rest of parliament. Previously, parliament refused the recommendation of Baker Tilly Merali as the official auditor, on grounds that the firm registered a conflict of interest with the sitting Auditor General Edward Ouko.

Following the rejection, a number of stakeholders – including the Auditor General – were consulted to determine the criteria for selection. Deliberations produced the conclusion that international firms should be taken into consideration for selection, which is what led to an increase in the number of bids in the first place.

The contract, which is in excess of Sh 41 million, is representative of a broader trend in Kenya, wherein the public sector has been turning to the consulting industry for a number of highly lucrative contracts. The Big Four alone raked in more than Sh 180 million in various public sector contracts last year, and have won new projects this year, reflecting the growing reliance on professional consultants.