Senate flags Trans Nzoia County officials for awarding themselves over Ksh.30M fraudulent loans

The Senate Public Investments and Special Funds Committee has exposed alleged massive financial mismanagement in Trans Nzoia County, where senior county officials are said to have irregularly awarded themselves over Ksh.30 million in unsecured loans.

According to an audit report reviewed by the committee, Ksh.30.73 million was disbursed under the Car Loan and Mortgage Fund without any collateral, insurance, or supporting documentation—violating Regulation 16(1) of the fund's governing framework.

A further Ksh.10.6 million in loan repayments remains outstanding from officials who have since exited county employment, even as residents continue to lack access to basic services.

“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.

Key records, including loan application forms, approval minutes, and security documentation, were reportedly missing.

The committee also uncovered widespread irregularities in other county-managed funds, such as the Elimu Bursary, Climate Change, and Nawiri Funds, pointing to unsupported financial statements and long-standing unreconciled imprests.

“Qualified? Maybe. Competence? Clearly not,” said 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 lapses, attributing some failures to gaps in staff discipline and capacity.

“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 committee.

In response, the Senate Committee directed the Trans Nzoia County government to secure all outstanding loans with appropriate collateral, ensure proper documentation of all future disbursements, recover funds disbursed without security and table its agreement with SBM Bank, which manages the loan facility.

The committee signalled its intent to continue monitoring the situation, warning that legal action would follow if the directives are not implemented.