INDUSTRIAL ATTACHMENT REPORT

REG NO : HD 231-C004-0241/2012

NAME : NGARI FESTUS

COURSE TITLE : BCOM (FINANCE OPTION)

ACADEMIC SUPERVISOR : MR EVANSON NGUMO

DURATION : 21ST OCT 2014 - 8TH DEC 2014

OGANIZATION : NAIROBI CITY COUNTY

SUBMITION DATE :12TH January 2015

This report has been submitted to Jomo Kenyatta University of Agriculture &
Technology in partial fulfillment of the requirements of Bachelor of Commerce.

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Declaration

I hereby declare that this industrial attachment report is my original document and has not
been presented for the award of Bachelors degree in commerce in any other university.

Signature ………………………………… Date ……………………………….

NGARI FESTUS
REG NO: HD 231-C004-0241/2012

This industrial attachment report has been submitted for review with my approval as the
University supervisor.

Signature………………………………………..Date……………………………….

MR EVANSON NGUMO
JKUAT

TABLE OF CONTENTS
DECLARATION
………………………………………………….........................................2
ACKNOWLEDGEMENT…………………………………………………………………………
…..4
ABSTRACT…………………………………………………………………………………………
…….4

2
CHAPTER
ONE…………………………………………………………………………………………5
1.0 INTRODUCTION………………………………………………………………………………
….5
1.1 Background of NCC………………………………………………………………..6
1.2 Mission statement………………………………………………………………….6
1.3 Vision statement…………………………………………………………………… 6
1.4 Core
values…………………………………………………………………………….7
1.5 Objectives………………………………………………………………………………
7
1.6 Organization structure……………………………………………………………..8

1.7 Mandate of the NCC………………………………………………………………..8

1.8 NCC
functions………………………………………………………………………….9
1.9 Organization coverage……………………………………………………………10

CHAPTER TWO
…………………………………………………………………………………….….12
2.0 INTERNAL
AUDIT……………………………………………………………………………………12
2.1 Introduction……………………………………………………………………………
….12
2.2
Vision…………………………………………………………………………………..
…..12
2.3 Mission
…………………………………………………………………………………….12
2.4 Objective of the attachment……………………………………………………….12
2.4.1 General objective……………………………………………………..12
2.4.2 Specific objectives……………………………………………………12

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 2.5 Internal Audit structure………………………………………………………………
14
2.6 Activities done
…………………………………………………………………………..15
2.7 Experience
gained………………………………………………………………………15
2.8 Importance of attachment program…………………………………………….17

CHAPTER
THREE………………………………………………………………………………………….18
3.0 SWOT
ANALYSIS……………………………………………………………………………….……
18
3.1 Strength of the organization……………………………………………………….18
3.2 Weaknesses of the organization………………………………………………...18
3.3 Opportunities of the organization…………………………………………..……19
3.4 Threats of the organization……………………………………………..………….20
3.5 Challenges
faced………………………………………………………………………..20

CHAPTER
FOUR………………………………………………………………………………………….
22
4.0 RECOMMENDATION AND
CONCLUSION………………………………………………….22
4.1 Recommendation………………………………………………………………………
22
4.2 Conclusion……………………………………………………………………………
……22

REFERENCES………………………………………………….…………………23

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Acknowledgements
My gratitude goes to Jomo Kenyatta University of Agriculture and Technology academic staffs that have
impacted their vast knowledge and assisted me during my industrial attachment. It’s through their valued
support that I would be able to get my attachment and enjoy it. Many heartfelt thanks for their support.

Many thanks go to the management and staffs of NAIROBI CITY COUNTY for their
unwavering support and giving me a chance to be part of their team, worth mentioning is
the invaluable support and guidance that I constantly got throughout my industrial
attachment from the finance and accounting team.

I also want to extend my gratitude to Mr Evanson Ngumo (lecturer /supervisor) for the
professional, guidance, supervision and for all the support and ideas we shared during the
course of my industrial attachment.

I would also like to extend my heartfelt gratitude to my family members for their
invaluable support throughout my attachment.

Abstract

This industrial attachment report summarizes my experiences in a working environment

with real operational structures that I went through at Nairobi City County. The duration
of the attachment was eight weeks, which I spent in the Finance and Accounts
department. It is in line with Bachelor of Commerce Degree that a report be compiled
that summarizes the relation of practical experience gained to academic education.

Therefore, this report is feedback to Jomo Kenyatta University of Agriculture and

Technology.

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INTRODUCTION OF THE ORGANIZATION

I was privileged to secure a place of attachment at the Nairobi City County in the
ministry of finance and economic planning. The NCC is among the 47 counties
established under the new constitution in Kenya. Its capital is the city of Nairobi which is
also the largest city of Kenya.
Nairobi County was founded in 2013 on the same boundaries as Nairobi province after
Kenya 8 provinces were subdivided into 47 counties.

1.1 Brief background history of NCC.

Nairobi is the capital and the largest city of Kenya. The city and its surrounding area also
form the Nairobi County. The name Nairobi comes from the Maasai phrase “Enkare
Nyrobi,” which translate to cool water.
The area Nairobi currently occupies was essentially uninhabited swap until a supply
depot of the Uganda railway was built by the British in 1899 linking Mombasa to
Uganda. The location was chosen due to its central position between Mombasa and
Kampala. It was also chosen because its network of river could supply the camp with
water and its elevation would make it cool enough for residential purposes for not only
the thousands of Indians laborers who came to Kenya seeking to be employed to work on
the railway line but also for British settlers with such apt location, it had soon grown big
enough to become the railways headquarters.
The city was first incorporated in 1890 as the township of Nairobi. The regulations
governing it were published on 16th April, 1900. The regulations defined the township of
Nairobi as “the area comprised within a radius one-mile-and-a-half from the present
office of H.M subcommisioner in Ukamba” and authorize the sub commission to
nominate annually a number of leading residents of merchants to act with him as a
committee.
In 1905, Nairobi replaced Mombasa as the capital of the British protectorate and the city
grew around administration and tourism, initially in the form of big game hunting. As
the British occupiers started using Nairobi as their first port of call. In 1919, the Nairobi
township community formally became Nairobi Municipal Council. Its boundary was

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extended to include surrounding part urban settlements. The boundary was again in 1927
extended to cover thirty square miles.
In July 1920 it was proposed that a more distinctive title be adopted for the chief of the
Municipality of Nairobi the capital of protectorate. The title mayor was suggested. It was
not official until 1923 that the title was officially applied. The development of local
government in town was determined by racial considerations, thus membership in the
town council was dominated by Europeans followed by Asians. It was until 1946, that the
1st African councilor Muchohi Gikonyo and Khamisi took their seats. It was as the mayor
remarked an historical occasion in East Africa local government.
In March 1950, Nairobi municipality became a city by the loyal charter of incorporation.
After independence the city of Nairobi elected its first indigenous mayor in 1964 and its
first female in 1975. In 1984 the Nairobi city council was dissolved to pay way for the
Nairobi city commission which governed the city up to 1992 when the Nairobi City was
reconstituted and first multi party mayor elected. With the promulgation of new
constitution of Kenya 2010, Nairobi elected the first governor under this constitution.
After the election of 2013 Nairobi City Council became Nairobi City County, thus
electing its governor the same year.

1.2 Mission of the County

To facilitate coordinated development and improve service delivery to stimulate
economic activity, high quality of life and become one of the most attractive cities of the
world.

1.3 Vision of the County

To be recognized as one of the most attractive cities of the world.

1.4 Core values

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Core values are central guiding principles that guide behavior and form basis of
relationships and business systems operations in the now and future. The County has
identified the following core values to drive the strategies.

Summary of Core Values

Accountability Focus on finding solutions and achieving results, as individuals take
responsibility for their decisions and actions.
Honesty Openness in service delivery
Integrity To show impartiality, transparency, fairness and honesty while upholding
the highest ethical standards in actions
Respect Value for people, encourage their development, reward their performance,
share ideas and knowledge and encourage cooperative efforts at every
level
Fairness Listen, understand and responsiveness to each other
Equity Acting in honesty and fairness

1.5 Objectives
The Nairobi City County has identified the following as strategic areas of focus/key
result areas which if concentrated on will enhance its competitive strength, enable it to
deliver more benefits to stakeholders and attain institutional sustainability to sharpen its
competitive future.
i. Strengthen institutional capacity and mitigation on cross-cutting issues such as
gender, HIV, drug abuse, disability and vulnerable groups.
ii. Legislative, policy and institutional reforms to enhance the capability for service
delivery.
iii. Enhance resource mobilization and financial management
iv. Promote a favorable investment environment for sustainable development

The NCC is responsible for the provision of essential services such as housing, healthcare
facilities, primary education, emergency response, waste collection

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 1.6 Organizational structure

Governor

Deputy Governor Officer from

National Police
Service.
County Secretary
Ministers
County Chief Officers

Sub County Administration

Ward Administration

1.7 Mandate of the NCC

The mandate of the NCC is derived from the legal framework guiding its operations and
includes the following:

a. Human resource capacity building (education, health);

b. Management of social development issues (street children, the destitute, hawkers,
sports and cultural activities);
c. Provision of water and sanitation under the County wholly owned Nairobi Water
and Sewerage Company;
d. Construction and rehabilitation of access roads;
e. Local economic development ( markets, bus parks);
f. Development control ( building standards);
g. Fire prevention and disaster management;
h. Environmental protection and management;
i. Urban public transport management;

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 j. Establishment of sites for burial and cremation;
k. Provide burial of all destitute persons who die within its area;
l. Ensuring good County governance;
m. Revenue mobilization and collection and
n. Safety and security

In order for the County to effectively deliver these services, it has been organized into 10
ministries each headed by a minister. These ministries are as follows:

1. Finance and Economic planning

2. Land ,Housing and Physical planning

3. Trade, Industry, Cooperative, Development and Tourism

4. Agriculture, Livestock and Fisheries

5. Public Service Management

6. Public Works, Roads and Transport

7. Water, Energy, Forestry and Natural Resources

8. Information Communication and E-Government

9. Education, Youth Affairs, Culture and Social Services

10. Health services

1.8 Functions of the Ministries of the Nairobi City County

Key urban functional areas the ministries of the county contribute to are as follows:

i. Pre-primary, primary and special education,

ii. Public Health and Sanitation services (including funeral services),

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 iii. Urban development management,
iv. Environmental management and protection,
v. Public housing provision,
vi. Management and development of public physical infrastructure like roads,
drainage, urban transport system, water, drainage and sewerage, fire fighting
services,
vii. Social and community services,
viii. Regulation of physical development (development control, building standards),
ix. Local economic development through provision of business infrastructure and
supportive regulations among other things.

1.9 Organization Coverage

Headquarters
The main offices of the Nairobi City County are located at City Hall Plaza on City Hall
Way.

Division of the Nairobi City County

Nairobi City County is divided into 17 constituencies and 85 wards.

Constituency No. of Wards Names

Wards
Westlands 5 Kitisuru, Parklands, Highridge, Kangemi, Mountain view.
Dagoretti North 5 Kilimani, Kawangware, Gatina, Kileleshwa, Kabiro
Dagoretti South 6 Mutuini, Ngando, Riruta, Nyayo Highrise, Uthiru, Waithaka
Langata 4 Karen, Nairobi West, Karura, South C
Kibra 4 Woodley, Sarang’ombe, Laini saba, Lindi, Makina
Roysambu 4 Kahawa West, Zimmermann, Roysambu, Kahawa
Kasarani 5 Clay City, Mwiki, Kasarani, Njiru, Ruai
Ruaraka 5 Babadogo, Utalii, Mathare North, Luckysummer, Korogocho
Embakasi South 5 Imara Daima, Kwa Njenga, Kwa Reuben, Pipeline, Kware
Embakasi North 5 Kariobangi North, Dandora 1, Dandora 2, Dandora 3, Dandora 4,
Embakasi Central 5 Kayole South, Kayole North, Kayole North Central, Komarock,Matopeni
Embakasi West 4 Umoja 1, Umoja 2, Mowlem, Kariobangi South
Embakasi East 5 Upper Savanna, Lower Savanna, Embakasi, Utawala, Mihango
Makadara 4 Maringo, Viwandani, Harambee, Makongeni

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Kamukunji 5 Pumwani, Eastleigh, North, Eastleigh South, Airbase, California
Starehe 6 Nairobi Central, Ngara, Pangani, Kariokor, Landmawe, Nairobi South
Mathare 6 Hospital, Mabatini, Huruma, Ngeri, Mlango Kubwa, Kimaiko

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 CHAPTER TWO

2.0 INTERNAL AUDIT DEPARTMENT

EXPENDITURE SECTION. (Where I was attached)

2.1 Introduction
Industrial attachment is an industrial training to every student in Rongo University
College during third year of the course undertaking. This is normally undertaken in the
long vacation, which last for three months. Students normally go to an institution related
to their course of study. Industrial attachment involves both public and private institution.
Industrial attachment is integral parts of curriculum in Rongo University College,
preparing students for dynamic real life employ situations, cultivating professionalism,
aptitude, and attitude, adaptive, interpersonal, and collaborative skills. Students are
placed in real life situation working alongside with experienced professionals in the
industry. The third year students are able to put into practice the knowledge and skills
acquired from their course, applying it to real life working environment, gaining
experience even before they graduate

2.2 Vision of audit department

To be the department of choice in offering and consultancy service to the county.

2.3 Misssion of audit department

To continuously review, assess and examine systems and process to enhance compliance
with the relevant international accounting and auditing standards.

2.4 Objectives of the attachment

2.4.1 Core objective

 To relate theoretical aspect of my academic training to the practical abilities at the
work place.

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2.4.2 Specific objective

• To apply principles, concepts and conventions of accounting in analyzing and

interpretation of data and information.
• To acquire high ethical standards and self-discipline such as excellence,
transparence, honesty, integrity, team work, punctuality, and keenness.
• To be competent and well versed with concepts of accounts and learn how to
adapt to challenges arising in the profession.
• To enable students to interacting with potential employees and professionals who
are already in the job market for possible career development and get to learn the
attitude that are on demand in the job market.
• To enable the students to improve in the updated technology advancement in the
job market especially the ever changing computer technology

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 2.5 NAIROBI CITY COUNTY INTERNAL AUDIT STRUCTURE
Kenya National Audit Office

Governor internal audit &risk management

County Director (1)

Deputy Director

Information System Audit Financial & Operations Risk Management

(asst Director) (1) audit (asst Director) (asst Director)

Information Technology Revenue section CIA Expenditure & Quality Assurance

Budget Mngt & compliance CIA
CIA

Asst. CIA Administration Section CAO Asst. CIA Asst. CIA Asst. CIA

Snr IA Principal Admin PHRO Snr IA Snr. IA Snr. IA

Officer

Internal auditor1 Snr. Administrative officer Executive Secretary Internal auditor1 Internal Auditor1 Internal auditor 1

Internal Auditor2 Admin. Officer Senior Secretary 1 Internal auditor2 internal auditor2 Internal auditor 2
1

Admin. Officer2 Senor Secretary 2 Revenue Officer Internal Auditor 3

Asst. admin. Officer Snr. Clerical Officer Chief A. clerk Chief A. Clerk
1

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Snr. Account Senior Secretary 2 Snr Clerical Trainee Accountant Senior. A Clerk
Clerk Officer2 t

Senior Driver 1 Copy Typist Clerical Officer Audit Clerk 1

2.6 Activities done

Senior Driver 2 Community dvpmnt Asst Clerical Officer 2 Audit Clerk 2

While in the Audit Department I performed revenue duties such as drafting audit reports
and verification of bursary files and Expenditure duties such as:

 Incoming, auditing and dispatching daily payment vouchers and imprest warrant.
 Verification of bursary files of various county wards.
 Auditing the transport-daily work ticket for different departments.
 Auditing City County court payments: Magistrates final words on cash bail
refunds.
 Auditing terminal leave payments for members of City County staff.
 Field auditing of City County projects such as; roads, Schools City lighting and
filling reports.
 Auditing of City County monthly payroll for members of staff.

2.7 Experience Gained

The knowledge I have learnt and acquired through lectures for the different units I have
undertaken have been a solid foundation for what is happening in the corporate sector. At
least each unit studied has been applied in one way or another in my day to day activities
while on industrial attachment.

During the attachment period, some of the concepts, knowledge, skills and attitudes
acquired from JKUAT were applied to the working environment. The following are the
concepts applied:

1. Principles of management

16
I was able to notice the clear hierarchy of control and chain of command in the
organization. Leadership functions and roles as well as the management style were
noticeable as I had a theoretical knowledge to this.

2. Communications skills
Communicating with different workmates was easy although at first it proved to be
difficult. Later on the importance of good communication skills at work were applied and
everything started working out.

3. Human resources management A positive attitude developed towards team

work helped me a lot. In college, we had study groups and we would do
assignments together. This helped me to interact with my workmates in all the
departments.

IMPACT OF THE INTERNSHIP

Personal and professional development

My time spent in Nairobi City County has helped me gain a lot of skills, which include;
communication skills, analytical skills, human relations skills and conflict handling skills.
 Communication skills
Communication skills were acquired especially when talking to Directors and other staff
members of different Departments almost on a daily basis for any queries they needed to
be attended to. As a result I learnt to be polite, patient and tolerant with different
characters.

 Analytical skills

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Analytical skills were acquired during the attachment period. Accounts must not be
analyzed just at the surface but right from the bottom up to the top. I was able to analyze
things in detail; the supervisor played a major role in instilling this skill in me.
 Human relations skills
The attitude developed towards teamwork improved. In audit department, it is essential to
work as a team which helps a lot. Teamwork made work easier if communication with
workmates for better ideas was made regularly. Teamwork improves workers morale and
aid in maintaining the organizational behavior.
 Self confidence
During the first week I lacked this skill when talking to my supervisors or even to those
who would want to be served. However, I later became adapted to the working
environment. I could even complete tasks from one department to another under the clear
notion that I was doing the right thing.

 Self initiative.
I had a driving force in me that pushed me to execute my tasks. As i carried out my
duties, I would sometimes make some decisions that relate to my work without
necessarily consulting my supervisor as long as they were within the County policies.

 Auditing of payments vouchers

 Auditing of imprest warrants

2.8 Importance of attachment program

o It develops the practical and communication skills

o It enhance training
o It provides background information and experience in career choice
o It develops personality and understanding of individual and group in work
station.

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19
 CHAPTER THREE

3.0 SWOT ANALYSIS:

3.1 Strengths of the organization.

i. The county hosts international institutions for the nation, region and world hence
giving it a global recognition and attention.
ii. NCC has a strong assets portfolio that ranges from infrastructure facilities such as
schools, hospitals and recreational centers to land for development.
iii. Nairobi area is classified as high potential for possibility of increased investments
hence the possibility of enhancing and broadening NCC revenue base.
iv. A diversified staff in terms of varied disciplines that is necessary in county
management.
v. Existence of capacity review for staff rationalization which will ease deployment
in line with career progression; equally, the institutionalization of performance
contract to lowest level translates into knowledgeable and informed staff on the
County mandate, vision, mission, and goals.

3.2 Weaknesses of the organization.

i. About 69% of staff are unskilled; a reflection of a poor recruitment policy.
ii. Weak operational procedures arising from insufficient internal controls.
iii. Inadequate technical staff such as engineers, planners, values and
environmentalists to service the county.
iv. Poor financial planning that has led to ineffective management of cash flows
hence causing frequent staff strikes and poor service delivery.

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 v. Lack of clear structures with regard to definition of duties and responsibilities for
officers.
vi. Poor working environment leading to low staff morale.
vii. Inadequate technology adoption ability such as the networking systems and VOIP
services which are a big challenge in making the county technologically up-to-
date in service delivery.
viii. Perceived institutionalized corruption and unethical practices in the county
operations.
ix. Poor moderation of County meetings that are embedded with politics hence slow
decision making.
x. Failure to implement the succession planning (schemes of service) in the County.
xi. Low level of adherence to the Secrecy Act on information and lack of framework
on knowledge management.
xii. Conflict between the policy and executive arms of leadership and envisaged
changes in the governance structure at the county level raises conflict on how the
new organizational structural will be operationalized.
xiii. Failure to effectively analyze variances in revenue versus expenditures in core
services offered has led to ineffective financial management which affects the
credit rating of NCC.
xiv. Lack of policies on disaster management services posed challenges in addressing
the fire and flood occurrences especially in the slums and informal settlements.
xv. The negative attitudes of the County workers perceived by stakeholders have been
a seed of discord and mistrust hence inhibiting the smooth provision of services.

3.3 Opportunities of the organization.

i. Nairobi residents’ awareness and interest in delivery of urban services provides
scope for NCC to engage with them for cooperative approach to improved
delivery of services.
ii. Opportunities for sharing of best practices amongst the neighboring counties with
the objective of reducing pressure in the city as the other counties adopt best
practices and hence attract population to them.
iii. Development of partnership opportunities as a growing city of choice.

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 iv. High asset portfolio (land) provides opportunities for PPP development.
v. The unique positioning of Nairobi National Park and unique physical biodiversity
resources could be utilized to enhance resource mobilization.
vi. NCC is positioned to leverage on the heavy capital investments in infrastructure
development in Kenya which has been concentrated in and around the City of
Nairobi.
vii. Rapid ICT development will provide opportunities for technology leverage in
achieving operational efficiency.
viii. Being a County that hosts the National government and other national, regional
and international institutions, the County has an opportunity of easily mobilizing
funds for improved service delivery.
ix. Stakeholders’ involvement in planning and implementation through Public private
partnership (PPP) which has been embraced well in all County departments as a
vehicle towards improved and sustainable services.
x. With the devolution, the population in the County is anticipated to decline as
more people will seek gainful employment opportunities in their respective
Counties, hence reducing pressure on social utilities.
xi. The overlapping of roles into other government ministries with the mandate of the
NCC may improve on service delivery especially if it’s their core function. For
instance, the Ministry of Health, KEMRI and Mbagathi institutions as well as the
engineering department of roads and KURA.

3.4 Threats of the organization.

i. The rising population growth complicates the county planning in service delivery.
ii. Rigidity of poor work culture in the County in the wake of new entrants in service
provision which could deny the County revenue
iii. Slow uptake of emerging technologies to offer services e.g. CCTV, GIS, ERP’s,
SMART cities concepts, web based services by the staff could relegate the
County to operating with obsolete technology
iv. Degradation of the families in the County has created a large pool of delinquents
who make the city insecure from the high numbers of city street families hence
posing security threats to potential investors, workers and residents.

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CHALLENGES FACED DURING ATTACHMENT PERIOD.
 Applying theory to practice.
At college, theory work was learnt. It proved to be difficult to put theory into practice
since not all that was learnt at college applied to the practical part. Theory is skeletal
without any experience from the working environment. I had to use that little information
to tackle all the situations.
 Dealing with other workers.
Some of the workmates were very difficult to work with. I experienced difficulties in
performing some jobs up to perfection at first.
Some people at organization used to think that we attaché students were a threat if we
knew or performed better than they did. They had a mindset that they can lose their jobs
if that attaché happens to be employed back after graduation since the student would have
shown potential during the internship program.
 Teamwork problem
Teamwork was difficult to cope up with at first. Working with many people with
different characters, attitudes, backgrounds and cultures was not an easy task to do. Some
people were found to be very rude and difficult to work with especially at the end of an
accounting period. It was characterized by long working hours almost every day and
working under pressure to meet deadlines. As a student I had to be flexible and easily
adapt to the team works.

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 CHAPTER FOUR

4. 0 RECOMMENDATIONS AND CONCLUSION

4.1 Recommendations

For the Nairobi City County to accomplish its objectives it should:

 Strive to improve its staff’s skills capacity since a big fraction of the staff is not
qualified in undertaking their current assignments.
 Enhance responsive ICT system for improved service delivery
 Enhance Resource Mobilization and Financial Management since Inadequate
funding, low levels of compliance to payment of rent and rates has had a negative
impact on the management of the County and delivery of services to its residents.
 Promote a favorable investment environment for sustainable development by
improving the physical infrastructure, waste management, health care services,
physical planning, occupational health and safety regulations for promotion of
investment and thus greater development opportunities within the County.

4.2 Conclusion
The County is recording some level of performance in spite of the many challenges it
encounters. In a bid to address these challenges, and to take advantage of the available
opportunities to deliver on the County mandate, the strategies have been put based on the

24
Kenya Development Agenda. The organization is cooping well with the devolved
government and the new laws governing the County.

25
REFERENCES
Nairobi City County Strategic Plan 2014
www.nairobi.go.ke

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