Kenya Pipeline on the Spot Over Irregular Allowances

18 February 2019

Corruption-riddled Kenya Pipeline Company is on the spot again over irregular payment of overtime allowances, according to the latest report of the Auditor-General tabled in Parliament.

The report indicates that the firm paid overtime allowances amounting to Sh306 million to 1,080 staff contrary to the company's rules and regulations.

According to the report was tabled by Majority leader Aden Duale, a further Sh97 million was paid to 231 staff who were already earning responsibility allowances.

Mr Ouko says a further Sh171 million that was paid to 164 employees exceeded 25 per cent of their respective annual gross salaries.

In some instances, the report says, the annual overtime allowances received by the employees were as high as 250 per cent of annual gross salaries payable. This means that the claimants worked for more days than was practically possible in the financial year.

Also questioned by the auditor is Sh72 million, Sh9 million of which was spent on purchase of motor vehicle accessories such as chevrons, car mats, stripes, reflectors, life savers and key tags.


"The items were purchased as low-value procurement through petty cash payments and reimbursement claims lodges by the company's staff. Since the purchases occurred on regular basis, the total value for the items for the year exceeded the threshold for low-value procurement as set out in section 107 of the Public Procurement and Disposal Act, 2015," reads the report.

More shocking is that the number of accessories purchased exceeded the firm's fleet requirements and their prices exaggerated by 350 per cent.

On staff promotions, the audit revealed that the company promoted undeserving staff to up to seven grades higher.

"Although the appointees were said to possess the requisite academic qualifications, they lacked requisite experience and seniority as defined in the company's career progression guidelines," reads the audit report.

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