Learning Outcomes

This case study can be used to critically analyse the challenges of implementing change in newly established public sector entities, evaluate the role of internal audits in strengthening leadership, accountability, and governance, and develop practical strategies to address resistance to change and foster collaboration across workforce divides. Learners will also assess the trade-offs between achieving short-term results and building long-term institutional capacity, while appraising how budgetary and policy constraints influence strategic decision-making in the public sector.

Case synopsis

This case study follows Mr. Baraka, the newly appointed Manager of Internal Audit at Kenya State Corporation (KSC), who is thrust into a complex environment marked by legacy systems, a divided workforce, resource scarcity, and resistance to change. The KSC, established as part of a public sector reform agenda, is at a crossroads: it must decide whether to absorb long-serving seconded staff from its parent ministry-risking policy and budget breaches or let them go, risking operational disruption and the loss of institutional memory. Baraka must recommend a path forward to the board, balancing immediate wins with the long-term need for cultural and operational transformation. The case highlights the strategic role of internal audits in public sector change management, governance, and organisational leadership.

Complexity/ Academic level

This case is suitable for advanced undergraduate and graduate-level courses in public administration, business, and management, as well as for executive education and professional development programs. It is particularly relevant for public sector managers and leaders, board members and policymakers in state corporations, human resource and internal audit professionals, and private sector managers transitioning into public sector roles. The case may also be used by academics and students interested in governance, leadership, and public sector reform.

Supplementary Materials

Teaching notes are available only to educators upon request from the Case Centre at cases@strathmore.edu

Keywords

Change management and organisational transformation, leadership and governance in the public sector, financial management and resource allocation, internal audit effectiveness and risk management, and human resource management and organisational culture. 

Citation

Odero, J., Wang'ombe, D., & Abdul, F. (2026). Balancing Compliance and Change: The Internal Auditor’s Role in Navigating Reform at Kenya State Corporation. Strathmore Africa Case Center. https://doi.org/10.70268/sacc-05-2025-45

Publisher: Strathmore Africa Case Centre

Copyright © 2026, Strathmore Africa Case Centre

Category : Case

Author : James Odero, Prof. David Wang’ombe, Dr. Farida Abdul

Publisher : Strathmore University

Document ID : SACC-05-2025-45