The Public Accounts Committee (PAC) called upon the National Assembly to issue an international tender, inviting reputable global audit firms to bid for the provision of external audit services to the Office of the Auditor-General. This move follows the reluctance of local audit firms to bid, citing potential conflicts of interest.

The Committee argued that the law should be relooked into and changed to allow the Accounting Officer of the National Assembly to advertise the tender beyond the boundaries of the Republic of Kenya.

“This way, we will have more audit firms and it would not feel like there is a conflict of interest when they are asked to bid to audit the Office of the Auditor-General,” said Vice Chairperson, Hon. Tindi Mwale (Butere)

While moving a Motion to approve the appointment of M/s PKF Kenya LLP to provide external audit services for the Office of the Auditor-General (OAG) for the financial years 2022/2023, 2023/2024, and 2024/2025, Hon. Mwale explained that the committee’s investigation into the tender process revealed that very few firms typically bid.

This time was no exception, with only two firms—PKF Kenya LLP and Nelson and Francis LLP—submitting bids, with PKF Kenya LLP ultimately winning the tender at a cost of Kshs.25.5 million.

 “The reason for this state of affairs has been that most of these independent audit firms shy away having been engaged by the Office of the Auditor-General in other outsourced engagements,” said Hon. Mwale.

While advocating for the approval of PKF Partnership LLP to audit the operations of the Auditor-General, the Butere MP noted that the National Assembly had previously engaged PKF and was awaiting its report for the preceding years before submitting it to the House.

“As a Committee, we are committed to providing thorough oversight of this important office to enhance its operational efficiency and ensure value for every coin appropriated by this House,” he stated.

The lawmaker emphasized the need for accurate audit reports to ensure the prudent use and monitoring of taxpayers' funds.

“To achieve this, we must engage a reputable audit firm that can give us a true picture of public expenditure. By supporting this report, we will enable PKF to audit the Office of the Auditor-General and provide the feedback and productivity we expect in the public sector,” he stated.

Funyula MP, Hon. (Dr.) Ojiambo Oundo, a member of the Committee, emphasized the need to explore alternative mechanisms, even if it requires extending the tendering and procurement process beyond Kenya’s borders, to ensure meaningful competition.

Dr. Oundo expressed concern that having only two firms participate in the bidding process, with one being disqualified at the technical evaluation stage, is absurd.