Senate Probe Reveals Sh177 Million in Unpaid Loans Owed by Former Governors and County Officials
Nairobi - A detailed Senate investigation has exposed a massive scandal involving unpaid car and mortgage loans totaling over Sh177 million owed by former governors, their deputies, and senior county officials across Kenya. The probe, conducted by the Senate County Public Investments and Special Funds Committee, highlights severe lapses in financial oversight, with loans issued without proper securities, insurance, or guarantees, allowing borrowers to leave office without settling their debts.
The committee, chaired by Godfrey Osotsi, scrutinized loan practices in county governments and found that repayment terms often stretch up to 20 years - far beyond the standard five-year tenure of officeholders. Even sitting governors have secured loans they cannot realistically repay during their terms, such as one who borrowed Sh50 million despite earning around Sh957,000 monthly including allowances.
Meru County: Three Former Governors Owe Sh58 Million
In Meru County, all three former governors - Peter Munya, Kiraitu Murungi, and Kawira Mwangaza - have defaulted on massive loans from the county's Executive Staff Housing Fund. Kiraitu Murungi took out Sh40 million in December 2022 with a 20-year repayment plan. Peter Munya borrowed Sh25 million, while Kawira Mwangaza secured Sh13 million, also on extended terms. Together, they owe Sh58.04 million.
Current Meru Governor Mutuma Mutuma attributed the issue to practices started under Peter Munya's administration. He noted that the county followed Salaries and Remuneration Commission guidelines, which allowed borrowers to set their own timelines. Some repayments are ongoing, but defaults persist. To prevent future issues, the county is drafting a new policy to secure all loans properly and curb defaults.
West Pokot: Former Governor and Deputy Top Sh45 Million Debt
West Pokot County faces even steeper losses, with former Governor John Lonyangapuo and his deputy Nicholas Atudonyang owing over Sh45 million combined. Nicholas Atudonyang alone defaults on Sh23.52 million, as detailed in a May 15, 2024, county notice demanding repayment within 30 days or face legal action.
Adding to the tally, Kacheliba MP Titus Lotee, a former county officer, owes Sh8.04 million. Eight former county officers in total have racked up Sh55.64 million in unpaid debts. Governor Simon Kachapin lamented failed recovery efforts, including legal notices and attempts to seize properties or gratuities. He pointed out that Atudonyang spent much of his term abroad yet accessed county loans freely.
Other Counties Hit Hard
Kericho County reports Sh61.95 million in unsettled loans among 12 executive staff members, including one deceased officer. In Kirinyaga, borrowers from 2017 still owe Sh2.69 million. The Auditor-General's 2024 financial year report confirms widespread struggles across counties to recover these funds, underscoring weak internal controls.
Senators Demand Action and Slam 'Culture of Impunity'
Senators expressed outrage, labeling the defaults an abuse of office and a blatant culture of impunity in county governance. Nominated Senator Hamida Kibwana and Migori Senator Eddy Oketch joined calls for immediate accountability.
The committee has resolved to summon all implicated former officials for questioning. It recommends that the Ethics and Anti-Corruption Commission investigate the matters and spearhead fund recovery. Future loans must strictly match borrowers' tenures, with mandatory securities and oversight.
While legal recovery remains challenging due to unsecured loans, the Senate vows relentless pursuit through investigations and court actions. This probe serves as a wake-up call for county administrations to tighten financial controls and end the free-for-all lending era.