Dormant KSh3.8 Billion in Motor Car Loan Fund Sparks Parliamentary Probe
During a recent sitting at Parliament Buildings, members of the Committee questioned the fund’s overall relevance and effectiveness in supporting public officers’ welfare.
The Special Funds Accounts Committee has raised serious concerns over more than KSh3.8 billion lying dormant in the State Officers and Public Officers Motor Car Loan Scheme Fund. Photo/Parliament of Kenya.
By Robert Assad
The Special Funds Accounts Committee has raised serious concerns over more than KSh3.8 billion lying dormant in the State Officers and Public Officers Motor Car Loan Scheme Fund.
During a recent sitting at Parliament Buildings, members of the Committee questioned the fund’s overall relevance and effectiveness in supporting public officers’ welfare.
Chaired by Fatuma Zainab (Migori), the session brought together officials from the Fund as well as representatives from the Office of the Auditor General.
Members scrutinized recent audit reports, which highlighted that, as of June 30, 2023, only KSh225 million of the allocated funds had been utilized.
The stark contrast between the allocated KSh3.8 billion and the actual disbursement has triggered alarm among lawmakers, who are demanding clearer accountability and prompt action.
During the discussion, Kivasu Nzioka (Mbooni) expressed his dissatisfaction with the low uptake rate among eligible state and public officers.
He noted that, in an effort to prevent further idleness of the funds, management had resorted to investing the surplus in Treasury Bills.
“The underutilization of these funds raises important questions about the management and visibility of the scheme,” Nzioka stated. “We need to ensure that public resources are being effectively channeled to support those it was designed to help.”
Acting Chief Executive Officer, Edna Atisa, defended the current uptake levels by pointing to a lack of adequate awareness among the targeted public servants.
She explained that despite efforts to increase visibility through sensitization campaigns, many eligible officers remain unaware of the benefits offered under the Motor Car Loan Scheme Fund.
Ms. Atisa further highlighted that the investment of idle funds in Treasury Bills was a temporary measure aimed at preserving financial value while efforts to boost scheme participation continue.
The Committee underscored the critical importance of utilizing public funds responsibly to ensure that they serve their intended purpose.
Several legislators emphasized that every shilling of public money must be accounted for, especially when it is meant to benefit state and public officers.
To address the concerns, the Committee has instructed the fund’s management to provide comprehensive evidence of all financial activities related to the scheme.
Further investigations will be conducted, with the Committee expected to compile a detailed report for presentation to the House.
Lawmakers stressed that ensuring transparency and accountability in the management of public funds is non-negotiable, and any lapses will be met with stringent corrective measures.
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