By Reporter
The Senate Committee on County Public Investments and Special Funds has questioned Machakos County over Sh96 million held by SBM Bank as security for employee car and mortgage loans while earning no interest.
The Committee, chaired during the sitting by Vice-Chairperson Sen. Beth Syengo, met Governor Wavinya Ndeti and her Executive to review Machakos County’s implementation of House resolutions arising from an earlier Committee report on issues raised by the Auditor-General on the County Car and Mortgage Scheme and management of municipalities.
Auditors found that the KSh96 million has been held by the bank since 2019, while only KSh55.3 million has been disbursed to six beneficiaries. The arrangement attracted scrutiny because borrowers also provide personal securities such as title deeds and logbooks.
“We cannot have KSh96 million in public funds sitting in an account without earning interest while beneficiaries are also required to provide their own security. The county must review this arrangement and demonstrate that it gives value to the public,” said Sen. Syengo.
Governor Ndeti defended the arrangement, saying the money was not idle but served as collateral enabling the bank to lend its own funds. She said the county was already engaging SBM Bank to renegotiate the terms.
“The KSh96 million is security for the scheme, not money that has simply been left unused. However, we accept the concerns raised and are engaging the bank so that the arrangement can be reviewed and improved,” said Governor Ndeti.
Machakos Senator Agnes Kavindu urged the county to ensure the scheme benefits a wider pool of employees rather than remaining accessible to a limited number of beneficiaries.
“County resources must serve employees fairly. If this scheme is sustainable, then its structure should allow more eligible staff to benefit while protecting public funds,” said Sen. Kavindu.
Sen. William Kisang challenged the county to support its assurances with documentation.
“Verbal commitments are not enough for audit purposes. We need the revised agreement, evidence of negotiations and a clear record showing how the county intends to safeguard this money,” said Sen. Kisang.
The Committee also raised concerns over incomplete municipal asset registers, revenue-account compliance and failure to meet ethnic diversity and disability representation requirements.
The county was directed to renegotiate the SBM agreement, submit a revised draft and loan book, complete asset valuation and ensure future municipal recruitment complies with diversity requirements.
