Kenya: Audit report reveals Nairobi Hospital faces Ksh2.2 billion loss within a year

An audit firm report has revealed that Nairobi Hospital has counted losses worth Ksh2.2 billion within a year, according to a news report by Kenyams.co.ke.

The former management of the hospital has been accounted for mismanagement of funds as well as failure to follow essential financial rules.

The current hospital board led by its chairperson Irungu Ndirangu, commissioned the audit to investigate the handling of the hospital's finances.

According to the report, there are unexplained revenue irregularities between two internal billing systems, Kranium and Navision, in billing and receipts.

"As of December 31, 2019, the total inpatient and outpatient revenue recorded on Kranium for the Financial Year 2019-20 amounted to Ksh12.8 billion. The total revenue recorded on Navision amounted to Ksh10.6 billion resulting in an unexplained variance of Ksh2.2 billion. This is equivalent to two months' revenue," reads the report in part.

The report also revealed price variation orders caused a gap in accounting for Ksh2.8 billion. Furthermore, the report showed that orders were not the focal point of discussion during their meetings except for one discussion carried out on the fourth finance and investment committee meeting held in 2019.

There was also a lack of project records, policies, procedures as well as payments to projects without contracts - resulting in another unexplained expenditure of Ksh1 billion. The suppliers were held liable due to the omission of vital documents.