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Sh30 million loan irregularities surface in Trans Nzoia county

Sh30 million loan irregularities surface in Trans Nzoia county
Trans Nzoia Governor George Natembeya before The Senate Public Investments and Special Funds Committee at Bunge Towers, Nairobi on July 30, 2025. PHOTO/ NATIONAL ASSEMBLY
In Summary

The audit also revealed that about Sh10.6 million remains unpaid by former county employees who have since left their positions.

The Senate Public Investments and Special Funds Committee has brought to light serious financial irregularities in Trans Nzoia County, revealing that senior officials improperly granted themselves unsecured loans totaling over Sh30 million, while residents still face shortages in basic public services.

An audit report presented to the committee showed that Sh30.73 million was withdrawn from the Car Loan and Mortgage Fund without the required collateral, insurance, or supporting paperwork, directly violating Regulation 16(1) of the fund’s regulations.

The audit also revealed that about Sh10.6 million remains unpaid by former county employees who have since left their positions.

“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 Senator Eddy Oketch, who chairs the committee.

In addition to the unsecured loans, the committee found glaring financial mismanagement in several other county funds, including the Elimu Bursary, Climate Change, and Nawiri Funds.

These accounts showed unsupported balances and unreconciled advances that have lingered for years, highlighting systemic weaknesses in financial oversight.

Senator Raphael Chimera criticized the county’s accounting team, saying, “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.”

Governor George Natembeya acknowledged some of the shortcomings, attributing them to weak discipline and capacity among staff. “We’ve sponsored many of these accountants for training, but some don’t even attend. We’re now tightening supervision and enforcing attendance,” he told the Senate committee.

Following the revelations, the Senate Committee ordered Trans Nzoia County to secure all outstanding loans with proper collateral and to ensure all future loan disbursements are fully documented.

The county was also directed to recover the unsecured funds and submit its agreement with SBM Bank, which administers the loan facility, to the committee for review.

The committee further warned that it will continue to oversee the situation closely and that failure to comply with its directives will result in legal action.

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