The Senate Public Investments and Special Funds Committee has raised the alarm over massive financial mismanagement in Trans Nzoia County, where a few senior officials allocated themselves loans amounting to Sh30,730,000 without any security or insurance, even as residents struggle to access essential services.
“This is a betrayal of public trust,” said Senator Eddy Oketch, who chaired the session.
“Millions have been issued to a few individuals, some of whom have left county service and are no longer repaying. Meanwhile, wananchi can’t get health services or water. This committee will not tolerate such recklessness.”
The audit revealed that under the Car Loan and Mortgage Fund, Kshs. 30.7 million was disbursed without collateral or supporting documents.
Additionally, Kshs. 10,652,082 in loan repayments from former staff remains outstanding. The Fund also lacked loan application forms, minutes of approval, and securities, all contrary to Regulation 16(1) of the Fund’s own law.
But the crisis runs deeper. Across nearly all funds, including the Elimu Bursary, Climate Change, and Nawiri Funds, there were glaring inaccuracies, unsupported cash and cash equivalents, and long-outstanding imprests, with accountants cited at the heart of the problem.
“Qualified? Maybe. Competence? Clearly not,” charged Senator Raphael Chimera. “These accountants are the common thread in every failed fund. We are seeing the same sloppiness repeated. They must be held to account.”
Governor George Natembeya acknowledged the capacity gaps. “We’ve sponsored many of these accountants for training, but some don’t even attend. We’re now tightening supervision and enforcing attendance.”
The Committee directed the County to secure all loans with collateral, ensure proper documentation, recover outstanding funds, and table its agreement with SBM Bank, which manages the loan facility.