Parliament has launched an inquiry into the underutilization of a Ksh 3.8 billion car loan fund meant to benefit public officers, raising concerns about its relevance and effectiveness. Members of Parliament, sitting in a committee chaired by Migori Woman Representative Fatuma Zainab, questioned the fund’s viability given its low uptake and minimal awareness among eligible beneficiaries.
During the session, Mbooni MP Kivasu Nzioka challenged the fund’s administrators over its dormancy, revealing that the management had resorted to investing in Treasury Bills to avoid leaving the money idle. “We need to understand why such a significant amount of public funds remains untouched,” said Nzioka.
According to Acting CEO Edna Atisa, only Ksh 225 million of the total amount had been utilized by June 30, 2023. She attributed the low uptake to limited awareness among public servants, although she noted that sensitization efforts had been launched to address the issue.
The committee expressed disappointment that the fund, established to support public officers’ welfare by easing access to car loans, has largely remained inactive. Lawmakers stressed the importance of ensuring public resources are not only properly managed but also actively used for their intended purpose.
“The objective of setting up such a fund was to improve the lives of public officers. If it is not achieving that, then we must rethink its structure or repurpose it,” said one MP during the deliberations.
The committee instructed the fund’s management to furnish Parliament with detailed records of its financial activities and provide evidence of the reported sensitization efforts. Lawmakers emphasized that every shilling allocated from the public coffers must deliver value.
The committee will conduct a deeper investigation into the fund’s operations and prepare a comprehensive report to be tabled in the National Assembly. The findings are expected to influence the fund’s future direction, possibly leading to reforms or reallocation of the dormant resources to more effective programs.
