In Summary
  • Mr Ouko says the county assemblies advanced huge sums of money to MCAs without any form of security.
  • In Nairobi, 10 MCAs received car loans way above the recommended amounts.
  • Mr Ouko warned that the recovery seemed to be “uncertain”, noting that the assembly failed to charge security for the loans.

At least five county assemblies are on the verge of losing millions of shillings in unpaid car loans and mortgages advanced to their respective members who failed to capture their seats in the 2017 elections.

According to Auditor-General Edward Ouko’s report for the year ending June 30, 2018 and tabled in the Senate, the affected counties are Nairobi, Busia, Nyamira, Kiambu and Kwale.

Mr Ouko says the county assemblies advanced huge sums of money to MCAs without any form of security, contrary to the Public Finance Management (PFM) Act, thus putting taxpayers’ money at great risk in case of default.

VARIANCE

In Nairobi, 10 MCAs received car loans way above the recommended amounts.

The audit revealed a variance of Sh12.7 million between the total amount of car loans issued to the MCAs and the values indicated in the valuation reports by the Automobile Association of Kenya.

“It is evident that the loans issued to the MCAs exceeded the value of their vehicles contrary to the Public Finance Management (Nairobi City County Assembly Car Loan and Mortgage Scheme Fund) Regulations 2017,” Mr Ouko says.

The former MCAs pocketed Sh12.7 million without proof of security.

NO SECURITY

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