A new Senate inquiry has raised serious questions about how counties manage loans for senior officials, exposing a growing pattern of unpaid car and mortgage loans among former governors, deputies, and top officers.
The findings have painted a worrying picture of financial indiscipline, weak oversight, and what lawmakers describe as outright abuse of office.
The investigation by the Senate County Public Investments and Special Funds Committee revealed that many county governments have been issuing large loans without proper security or repayment guarantees.
Some loans were reportedly structured to last well beyond the five-year term of governors and other top officials, allowing borrowers to exit office without settling their debts.
Committee chairperson Godfrey Osotsi expressed concern that this practice was undermining accountability and straining county finances.
According to Osotsi, some governors borrowed tens of millions of shillings under conditions that made repayment within their term nearly impossible. He cited a case where a governor took a Sh50 million loan despite having only five years in office.
“We also access loans in Parliament, but they must be cleared within our term,” he said, noting that county governments had ignored this principle.
In Meru County, the problem appears especially serious. Governor Mutuma Mutuma told the committee that all three former governors Peter Munya, Kiraitu Murungi, and Kawira Mwangaza owe the county’s Executive Staff Housing Fund a total of Sh58.04 million.
Records show that Kiraitu borrowed Sh40 million in December 2022 with a 20-year repayment plan, while Munya and Mwangaza took Sh25 million and Sh13 million respectively under similar terms.
Senators questioned why county officers were allowed to set repayment periods that exceeded their tenure.
Mutuma admitted that some of the defaults date back to earlier administrations and that the county had been following outdated guidelines from the Salaries and Remuneration Commission.
He said new local policies were being developed to ensure future loans are properly secured and repaid within officials’ terms.
Nominated Senator Hamida Kibwana condemned the practice, calling it a blatant abuse of office. She urged the Ethics and Anti-Corruption Commission (EACC) to intervene and recover the funds.
“Taking a loan and refusing to repay is outright abuse of office,” she said.
The committee also uncovered similar cases in West Pokot, where former Governor John Lonyangapuo and his deputy Nicholas Atudonyang owe more than Sh45 million.
A notice dated May 15, 2024, warned Atudonyang to repay Sh23.52 million within 30 days or face legal action.
The list also includes Kacheliba MP Titus Lotee, among eight former officers who collectively owe Sh55.64 million.
Governor Simon Kachapin confirmed that attempts to recover the money have been unsuccessful, noting that Atudonyang, who spent much of his term abroad, still benefited from county loans.
Senators described the situation as a reflection of deep-seated impunity in county administrations. Migori Senator Eddy Oketch said the EACC must work closely with the Senate to ensure recovery and accountability.
The committee has now resolved to summon all implicated officials and enforce measures to prevent future misuse of public funds.
Osotsi noted that recovery will be difficult because many loans were issued without security. However, he said the Senate will invoke its constitutional powers to summon those responsible.
The Auditor-General’s 2024 report supports the committee’s findings, showing that several counties still struggle with unpaid staff loans. In Kirinyaga, Sh2.69 million dating back to 2017 remains uncollected, while Kericho has Sh61.95 million in unsettled loans involving 12 executive staff members.
The Senate committee concluded that the widespread defaults expose serious weaknesses in county financial controls and pledged to pursue both legal and investigative action to safeguard public funds and restore discipline in county lending practices.
