Senate probe uncovers unpaid loans by ex-governors, county officials
In Meru County, all three former governors, Peter Munya, Kiraitu Murungi, and Kawira Mwangaza, owe a combined Sh58.04 million to the county’s Executive Staff Housing Fund.
A Senate investigation has brought to light a worrying trend of unpaid car and mortgage loans among former governors, deputies, and senior county officials.
The inquiry by the Senate County Public Investments and Special Funds Committee revealed that numerous loans were granted without proper oversight or repayment guarantees, allowing borrowers to leave office without clearing their obligations.
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Committee chairperson Godfrey Osotsi said that many of the loans were issued with terms that far exceed the five-year tenure of officeholders, raising serious concerns about accountability.
“County governments are issuing loans without proper securities, insurance or charging property. They also don’t consider whether repayment terms go beyond the tenure of the borrower,” he said.
Osotsi added that even current governors have obtained loans that they are unlikely to repay during their terms.
“We had a case where a governor borrowed Sh50 million. How can one possibly repay Sh50 million in five years? In Parliament, we also access loans, but all must be cleared within our term,” he said.
Governors earn Sh957,000 monthly, including allowances. Over recent sessions, the committee identified at least four former governors and a deputy who still owe substantial sums years after leaving office.
In Meru County, all three former governors, Peter Munya, Kiraitu Murungi, and Kawira Mwangaza, owe a combined Sh58.04 million to the county’s Executive Staff Housing Fund.
Governor Mutuma Mutuma said Kiraitu borrowed Sh40 million in December 2022 with a 20-year repayment plan, while Munya and Mwangaza took Sh25 million and Sh13 million, also repayable over 20 years.
Senators questioned why the county allowed repayment schedules that extend far beyond officials’ terms.
“The issue we’re facing dates back to Peter Munya’s tenure. Some have defaulted, while others are still attempting to pay,” Mutuma explained.
He noted that the county relied on guidelines from the Salaries and Remuneration Commission (SRC), which permitted officeholders to determine their own repayment timelines.
“We are developing a local policy to curb defaults and ensure all future loans are properly secured,” he said.
Senators condemned the practice as an abuse of office and urged investigations.
“Taking a loan and refusing to repay is outright abuse of office. Why shouldn’t we invite EACC to investigate and recover these funds?” asked nominated Senator Hamida Kibwana.
In West Pokot, the committee discovered that former Governor John Lonyangapuo and his deputy Nicholas Atudonyang owe over Sh45 million in outstanding loans.
Atudonyang alone owes Sh23.52 million, according to a county notice dated May 15, 2024, which warned of legal action if repayment was not made within 30 days.
“This is to notify you that you have defaulted in servicing your car loan and mortgage without notice to the committee as of May 15, 2024,” the letter reads.
“Notice is hereby given to you to clear your car loan/mortgage arrears of Sh23.52 million within 30 days. Failing which, legal action will be taken against you for recovery of the same to your peril as to costs and other incidental costs.”
Also listed is Kacheliba MP Titus Lotee, who owes Sh8.04 million, forming part of a group of eight former county officers with outstanding debts totalling Sh55.64 million.
Governor Simon Kachapin said efforts to recover the loans, including legal threats, have not succeeded.
“It’s true that a huge amount remains unpaid. Efforts to recover the funds have been futile, especially from the former governor and his deputy, who owe the bulk of it,” Kachapin said.
He noted that Atudonyang spent most of his term abroad but still benefited from county loans, and attempts to attach properties or gratuities failed.
Senators described the situation as a culture of impunity in county governance. “We must treat this as a clear abuse of office.
EACC should partner with us to ensure recovery and accountability,” said Migori Senator Eddy Oketch.
The committee resolved to summon all implicated former officials and ordered that future loans strictly align with the borrowers’ term of service.
“As per Article 125 of the Constitution, we shall summon those responsible. Recovery through legal means will be difficult since most of these loans were unsecured,” Osotsi said.
The Auditor-General’s report for the 2024 financial year shows that several counties are struggling to recover outstanding loans.
In Kirinyaga, Sh2.69 million in loans dating back to 2017 remains unpaid, while Kericho County has Sh61.95 million in unsettled loans among 12 executive staff, including a deceased officer.
The committee emphasised that the findings highlight weak financial controls in county administrations and vowed to ensure accountability through legal and investigative measures.
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