Trans Nzoia County Officials On The Spot For Sh30.7 Million Unsecured Loans
The Senate Public Investments and Special Funds Committee has flagged serious financial mismanagement in Trans Nzoia County, where a handful of senior officials allocated themselves loans amounting to Sh30.7 million without any form of security or insurance.
During a session chaired by Senator Eddy Oketch, the committee revealed that the funds were drawn from the Car Loan and Mortgage Fund with no collateral or supporting documentation. Oketch condemned the move as a betrayal of public trust.
“Millions have been issued to a few individuals, some of whom have left the county service and are no longer repaying. Meanwhile, wananchi can’t get health services or water. This committee will not tolerate such recklessness,” he said.
The audit showed that loan application forms, minutes of approval, and loan securities were missing—contravening Regulation 16(1) of the fund’s regulations. In addition, Sh10.6 million in loan repayments remains unpaid by former staff.
The committee also highlighted similar gaps across other key county funds, including the Elimu Bursary Fund, the Climate Change Fund, and the Nawiri Fund. These included unsupported cash balances, long-standing imprests, and inaccurate financial records. Senators placed the blame squarely on the county’s accountants.
“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 admitted to staffing challenges. “We’ve sponsored many of these accountants for training, but some don’t even attend. We’re now tightening supervision and enforcing attendance,” he said.
The committee has now ordered the county government to ensure all loans are backed by collateral, recover unpaid amounts, and submit proper loan documentation. It also directed the county to table its agreement with SBM Bank, which manages the loan facility.