The United States has faulted Kenya’s Integrated Financial Management Information System (Ifmis), arguing that the system can be hacked and changed, which could cost taxpayers billions of shillings.
In a new study, the Office of the United States Trade Representative (USTR) says that Ifmis faces several risks that have been brought up by American companies that do business with Kenya or want to do business with Kenya.
“US companies have expressed concerns about Ifmis due to insufficient connectivity and technical capacity in county government offices, apathy from county government officials, central control shutdowns, and security gaps that render the system vulnerable to manipulation and hacking,” US Trade Representative Katherine Tai said in the report.
Kenya is not a member of the WTO Agreement on Government Procurement or an observer to the WTO Committee on Government Procurement, according to a study by USTR.
To stop graft, Ifmis was made to keep track of all financial transactions by recording who logged in, when, what computer was used, and what action was taken. It is the computer program that the government uses to keep an eye on the country’s money, from making plans and budgets to buying things, paying bills, keeping records, and giving reports.
It has, however, been at the centre of some of the biggest theft rings and graft scandals in Kenya’s history, both at the national and county government levels. This has made people question how well it works to hold people accountable.
A group of top officials from a Ministry of Health office tried to steal Ksh30 million by tricking Ifmis in 2016. This case revealed a complex theft ring involving dishonest government officials and dishonest suppliers.
In Kenya, more than 700 million online crimes were reported in 2022. The amount of money made was about 69% more than the previous year. System weaknesses were the most common type of online crime in the United States.