Senators expose Trans Nzoia officials for awarding themselves Sh30 million unsecured loans
Governor George Natembeya admitted that there were issues with staff performance and discipline, noting that some officers failed to attend capacity-building sessions even after being sponsored for training.
A Senate watchdog committee has uncovered alleged deep-rooted financial malpractice in Trans Nzoia County, where top county officials are reported to have irregularly awarded themselves over Sh30 million in unsecured loans from a public fund, even as residents continue to struggle without basic services.
The Senate Public Investments and Special Funds Committee, which reviewed audit findings on the matter, heard that Sh30.73 million was disbursed from the Car Loan and Mortgage Fund without any form of collateral, insurance, or required documentation, violating Regulation 16(1) of the fund’s own guidelines.
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The audit further showed that Sh10.6 million in loan repayments remain unpaid by county staff who have since left government service. The disbursements were done without loan application forms, approval minutes, or any security documents.
“This is a betrayal of public trust. 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,” said committee chairperson Senator Eddy Oketch on Wednesday
The financial mismanagement appears to go beyond the loan fund. The committee also flagged widespread irregularities in other county-managed accounts, including the Elimu Bursary Fund, the Climate Change Fund, and the Nawiri Fund.
These included unsupported financial statements, questionable figures on cash balances, and failure to account for imprests that have remained unreconciled for long periods.
Senator Raphael Chimera blamed the mess on a small circle of finance officers. “Qualified? Maybe. Competence? Clearly not."
These accountants are the common thread in every failed fund. We are seeing the same sloppiness repeated. They must be held to account,” he said.
Appearing before the committee, Governor George Natembeya admitted that there were issues with staff performance and discipline, noting that some officers failed to attend capacity-building sessions even after being sponsored for training.
“We’ve sponsored many of these accountants for training, but some don’t even attend. We’re now tightening supervision and enforcing attendance,” the governor told the committee.
In its preliminary recommendations, the Senate Committee directed the Trans Nzoia County Government to recover all loans issued without security, secure any future disbursements with proper collateral, maintain proper records, and present its agreement with SBM Bank, the institution managing the loan facility.
The committee also signalled it would keep monitoring the matter and warned that failure to implement the directives would lead to legal consequences.
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