Matuu Level 4 Hospital. Photo Courtesy Facebook. 
By Staff Reporter
The Auditor-General has exposed serious financial and administrative irregularities at Matuu Level 4 Hospital, revealing weak governance structures, questionable accounting practices, and multiple breaches of public finance laws that have jeopardized service delivery.
In a report for the financial year ending June 30, 2024, the Auditor-General issued a qualified opinion on the hospital’s financial statements, citing significant concerns over missing disclosures, incomplete records, and mismanagement of public assets.
According to the report, the hospital failed to disclose in-kind contributions from the Machakos County Government, including medical supplies worth more than Kshs. 7 million from the Kenya Medical Supplies Authority (KEMSA) and Mission for Essential Drugs and Supplies (MEDS). Similarly, donations from development partners such as USAID and ION Kenya were not reflected in the financial statements.
“The accuracy and completeness of the financial records could not be confirmed,” the Auditor-General noted, adding that the hospital’s failure to record such contributions undermines transparency and accountability in the use of public resources.
The audit also revealed that the hospital’s books show nil balances for property, plant, and equipment, despite physical verification confirming the presence of buildings, land, vehicles, and medical equipment.
Worse still, ownership documents for the land were missing, and ongoing projects such as the Casualty and Radiology Complex lacked supporting documents to show cost, value, or progress. The hospital’s mortuary has also remained stalled for over a decade.
The report further disclosed that the hospital’s trade payables rose sharply from Kshs. 915,000 to nearly Kshs. 3 million, attributed to delayed disbursement of funds by the County Government. This has led to unpaid supplier bills and potential accrual of interest, in violation of the Public Finance Management Act, 2012.
Among the governance lapses highlighted is the absence of a legally required Board of Management, contrary to the Machakos County Health Services Act, 2024. The Auditor also faulted the hospital for failing to comply with the Facility Improvement Financing Act, 2023, noting that management lacks access to its own paybill account and cannot verify whether collected revenues were transferred back to the hospital.
In addition, Matuu Level 4 Hospital was found to be severely understaffed, operating with only 27% of the required personnel and lacking key specialists such as gynaecologists, anaesthesiologists, and paediatricians. Essential medical equipment—including ICU and dialysis machines—were also missing, violating national health standards.
The Auditor-General also flagged data protection breaches, revealing that the hospital has no data management policy or designated Data Protection Officers despite handling sensitive patient and employee information.
“The hospital was in breach of the law, and privacy for both customers and staff could not be ascertained,” the report states.
The audit further pointed to poor inventory management, with expired drugs and unaccounted medical supplies, and cited failure to dispose of unserviceable assets as required by the Public Procurement and Asset Disposal Act, 2015.
The report concludes that internal controls, risk management, and governance systems at the hospital were ineffective, warning that continued non-compliance may expose public funds to loss and compromise health service delivery in Matuu and surrounding areas.
