Senate questions Machakos over Ksh96M held by bank as car, mortgage loan security
The Senate has put Machakos County on the spot over Ksh96 million held by SBM Bank as security for an employee car and mortgage loan scheme, with lawmakers questioning why the public funds have earned no interest since 2019. The Senate Committee on County Public Investments and Special Funds raised concerns over the arrangement during […]
In September 2023, Kenya's Senate questioned Machakos County Government over Sh96 million deposited with SBM Bank as security for an employee car and mortgage scheme. Senators expressed concerns that the funds held since 2019 have not earned any interest. The Senate's County Public Investments and Special Funds Committee, led by Senator Beth Syengo, questioned Governor Wavinya Ndeti and her executives on the management of the scheme and the implementation of previous Senate recommendations from a county audit.
According to the Auditor-General, only Sh55.3 million of the deposited funds had been disbursed to six beneficiaries. The committee criticized the arrangement, noting that employees also provide personal collateral, including title deeds and logbooks. Governor Ndeti defended the scheme, stating the Sh96 million was not idle but being used as collateral to enable SBM Bank to advance funds to employees.
She said the county was working with the bank to renegotiate the terms following auditor and Senate concerns. Senator Agnes Kavindu urged the county to restructure the scheme for more employees to benefit. Senator William Kisang demanded documentary evidence to support the county's assurances, including details of its engagement with the bank.
The committee directed the county to renegotiate the agreement with SBM Bank, submit a revised draft of the deal, and ensure compliance with diversity and representation requirements in future municipal recruitment.
Written by urgent.news from Capital FM Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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