A new audit report has laid bare the troubling financial state of the Kenya Forest Service (KFS), revealing a bloated wage bill and widespread mismanagement that threaten the agency’s mandate of conserving Kenya’s forests.
The audit by Auditor General Nancy Gathungu, covering the fiscal year ending June 30, 2024, shows that KFS spent Sh5.69 billion 61 per cent of its Sh9.34 billion total revenue on employee compensation, far above the legal limit of 35 per cent set by the Public Finance Management Act, 2015. This gross overspending is not only illegal but also cripples the agency’s ability to deliver on its conservation goals.
Despite the high wage bill, KFS operates with 1,647 fewer staff than its approved establishment, highlighting a striking contradiction: overpaying for personnel while being severely understaffed. The report indicates imbalanced staffing, with some departments overstaffed and others critically short, undermining operational efficiency.
Additionally, the audit flagged Sh209 million in unaccounted revenue collected via point-of-sale gadgets not linked to the main revenue system, casting doubt on the integrity of collections. Other questionable financial practices include Sh82.7 million in unsurrendered imprest, Sh371.8 million in doubtful receivables, and Sh1.7 billion in unremitted taxes, exposing KFS to penalties from the Kenya Revenue Authority.
Governance issues are equally troubling. KFS failed to implement a financial management system across most of its forest stations, slowing reconciliation and creating loopholes for financial leakage. The agency is also entangled in 179 unresolved legal cases, with some dating back to 2008, resulting in taxpayer losses such as Sh8.18 million paid due to unchallenged court claims.
While the audit did not uncover outright fraud, it points to deep-rooted deficiencies in accountability, governance, and compliance.
A clear path forward involves KFS enforcing fiscal discipline and strategically restructuring staffing. By trimming the wage bill to the recommended 35 per cent and redeploying resources to fill critical roles like forest rangers, the agency can restore operational efficiency and rebuild public trust.
