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HomeBusinessMPs Investigate Ministries Over Sh1.6bn Charge For Unspent Loans

MPs Investigate Ministries Over Sh1.6bn Charge For Unspent Loans

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Economy

MPs Investigate Ministries Over Sh1.6bn Charge For Unspent Loans


Parliament buildings in Nairobi. FILE PHOTO | NMG

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Summary

  • The parliament will sample all government ministries, departments and agencies that were unable to withdraw loan balances, forcing the Treasury to pay commitment fees worth 1.7 trillion shillings.
  • The government paid Sh1,657,544,758 in unused loan commitment fees, but the loan agreement had been signed as of June 30, 2021.

The parliament will sample all government ministries, departments and agencies that were unable to withdraw loan balances, forcing the Treasury to pay commitment fees worth 1.7 trillion shillings.

The government paid Sh1,657,544,758 in unused loan commitment fees, but the loan agreement had been signed as of June 30, 2021.

The National Planning and Finance committee of the National Assembly will investigate the use of loans to pay loan commitment fees.

A lender generally charges commitment fees to a borrower to whom it has agreed to extend credit as a way to guarantee that the borrower will take the funds.

“Inefficiencies in obtaining loans by government enforcement agencies have led to the loss of public funds and the reckless and irresponsible use of public money contrary to the principle of public finances of article 201 (d) of the Constitution”, said the deputy of the municipality of Garissa. Aden Duale while searching for a Treasury statement.

The committee must investigate whether the National Treasury has technically exceeded the established debt limit of 9 trillion shillings without seeking new approval from Parliament and whether Kenya’s public debt is sustainable.

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