Auditor General questions State's hefty funding of KNSL

Auditor-General Nancy Gathungu has identified a series of irregular expenses, unexplained loans, and blatant disregard of the law by Kenya National Shipping Line's (KNSL) management...
✨ Key Highlights
The Auditor General, Nancy Gathungu, has raised significant concerns regarding substantial government funding to the Kenya National Shipping Line (KNSL) despite irregularities and a reduced government shareholding. Her report highlights questionable financial practices within KNSL and a lack of transparency in its operations and partnerships.
- KNSL received Sh118 million in grants from the National Treasury in the 2023-24 financial year, on top of Sh65 million in the previous year and Sh68 million in 2021-2022.
- The Auditor General questioned why grants were sent directly to the company, given that government shareholding is through Kenya Ports Authority (KPA).
- KPA's equity ownership in KNSL dropped from 75 percent to 53 percent in 2018, while Mediterranean Shipping Company (MSC) increased its stake to 33 percent.
- The report noted that MSC's selection as an equity holder in KNSL lacked provided evidence for audit review.
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