The National Treasury has moved to protect internal auditors from harassment and intimidation by county government officials as part of a push to safeguard the billions of shillings expended to the devolved units.
In changes to the Public Finance Management (County Governments) Regulations, National Treasury Cabinet Secretary John Mbadi has introduced special protection of the auditors amid growing concerns about wastage of funds in some counties.
The Treasury has amended the law and included new rules that no internal auditor shall be dismissed, demoted, suspended, harassed, discriminated against, intimidated, or subjected to any other form of retaliation for performing their duties.
‘No internal auditor shall be dismissed, demoted, suspended, harassed, discriminated against, intimidated, or experience any other form of retaliation for-(a) performing their duties in good faith; (b) reporting irregularities, fraud, misconduct, or non-compliance; or (c) providing findings, recommendations or opinions related to the internal audit function,’ Mr Mbadi said.
An internal auditor plays a critical role in a corporation by evaluating financial controls and record-keeping processes for accuracy, efficiency, and compliance with relevant laws and regulations. Internal auditors identify and correct any deficiencies in their financial record-keeping before they are discovered in an external audit.
The internal auditors examine financial statements, expense reports, inventory, financial data, budgeting and accounting practices, as well as creating risk assessments for each department.
Internal auditors in counties have, however, been facing growing strains of intimidation and interference by executives rattled by reports which exposed irregularities, especially in key areas such as procurement.
Internal auditors have recently stepped up a push-back against executive interference, litigation, and victimisation by mooting a proposed law that would safeguard their professionalism.
The Institute of Internal Auditors Kenya has spearheaded the Internal Auditors Bill, 2026 to regulate the profession and protect internal auditors from rogue executives.
The Public Sector Accounting Standards Board (PSASB) in January 2026 also launched a manual in collaboration with the National Treasury, designed to give internal auditors practical tools, clear procedures, and professional guidance to support better governance, risk management, and internal control across all public entities.