Nairobi Hospital Audit Report Reveals Ksh2Billion Loss

A report by an audit firm has indicated how Nairobi Hospital has recorded losses worth  Ksh2.2 billion within a year.

Former hospital management has been placed on the spot for mismanagement of the funds as well as for failure to comply with essential financial rules.

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

“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.

There was also lack of project records, protocols, processes as well as payments to projects without contracts, resulting in an additional unexplained cost of Ksh 1 billion.

The document called for disciplinary measures to be taken against personnel who interfered with the procurement process, as the report pointed to a number of communications between hospital staff and suppliers.

A conflict of interest regarding the recruitment of one key staff within the management was further disclosed in the report.

One employee had their salary raised from Ksh600,000 to Ksh900,000 by negotiating with the board directly. The said staff is believed to be related to a former board member.

0 Comments

*Enter your name

*2 characters minimum.

Do not change these fields following

Download our app from play store and get updates everyday for FREE. Press the button below.