NAIROBI,Kenya Sep 29 – The Senate has questioned the Machakos County Government over Sh96 million held by SBM Bank as security for an employee car and mortgage scheme, with legislators raising concerns that the funds have earned no interest since 2019. Breaking It Down The Senate County Public Investments and Special Funds Committee, chaired during Monday’s sitting by its vice-chairperson, Senator Beth Syengo, questioned Governor Wavinya Ndeti
09/29/26 • 13
NAIROBI,Kenya Sep 29 – The Senate has questioned the Machakos County Government over Sh96 million held by SBM Bank as security for an employee car and mortgage scheme, with legislators raising concerns that the funds have earned no interest since 2019.
📻 Breaking It Down
The Senate County Public Investments and Special Funds Committee, chaired during Monday’s sitting by its vice-chairperson, Senator Beth Syengo, questioned Governor Wavinya Ndeti and her executive over the management of the scheme and implementation of previous Senate recommendations arising from an audit of the county’s car and mortgage scheme and municipal management.
According to the Auditor-General’s findings, the county deposited Sh96 million with SBM Bank in 2019, but only Sh55.3 million had been disbursed to six beneficiaries.
The arrangement came under scrutiny after the committee noted that the county funds are being held as security while the employees benefiting from the loans are also required to provide personal collateral, including title deeds and logbooks.
📌 What You Need to Know
“We cannot have Sh96 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,” Senator Syengo said.
Governor Ndeti defended the arrangement, saying the Sh96 million was not idle but was being used as collateral to enable SBM Bank to advance its own funds to employees.
She said the county was engaging the bank to renegotiate the terms of the agreement following concerns raised by auditors and the Senate.
“The Sh96 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,” Ms Ndeti said.
Machakos Senator Agnes Kavindu called on the county to restructure the scheme to ensure more employees can benefit while safeguarding public resources.
“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,” Senator Kavindu said.
📰 Source: Capital FM Kenya
