A new audit report has put the National Treasury in the spotlight over Ksh160 billion in unaccounted debt repayments. The alarming findings emerged as the government plans to borrow Ksh413 billion in the current financial year, raising concerns over transparency and financial accountability.
Auditor General Nancy Gathungu’s report, presented to the National Assembly’s Public Debt and Privatization Claims Committee, detailed discrepancies in debt repayments for the financial years 2020-2023. The variances exceeded the legally allowed limit of 5%, with deviations as high as 10%. In 2022 alone, underpayment hit a staggering Ksh83.3 billion, raising suspicions of budgeted corruption and mismanagement.
MPs grilled Treasury officials over the discrepancies, with Baringo North MP Joseph Makilap warning of possible corruption. “Procurement laws are clear. You do not procure beyond budget allocations,” he emphasized. The Treasury defended the discrepancies, citing fluctuating exchange rates as the primary cause.
Shockingly, the audit revealed that of 32 loans examined, only 18 had undergone feasibility studies. Furthermore, 22 loans lacked public participation documentation, leaving taxpayers in the dark about how funds were spent. Auditor General Gathungu also flagged the absence of necessary approvals for most loans, which exposed the projects to risks like double financing and unbudgeted expenses.
Legal compliance was another major issue. Only five of the loans had legal opinions from the Attorney General, raising questions about procedural integrity. These lapses have heightened fears that billions meant for public projects were misappropriated or wasted.
The revelations come at a critical time when President William Ruto’s administration is grappling with economic pressures and public outcry over increasing debt. As the scrutiny deepens, calls for accountability and stronger oversight are growing louder. Treasury CS John Mbadi will have to provide answers soon, as the pressure from Parliament and the public escalates.
By Nairobi