The National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) has demanded urgent accountability from three state agencies over staffing crises, uncollected debts, procurement irregularities and breaches of international accounting standards.
The committee, chaired by Hon. Emmanuel Wangwe, MP for Navakholo Constituency, today grilled officials from the SACCO Societies Regulatory Authority (SASRA), the Nyayo Tea Zones Development Corporation (NTZDC), and Sports Kenya over troubling audit queries raised in reports by the Auditor-General.
At the committee members raised concerns over a significant staffing deficit that has left the regulator operating below capacity. Despite an approved establishment of 145 staff members, the Authority currently employs only 93, leaving a 36 per cent vacancy gap.
Lawmakers warned that the shortage risks undermining effective regulation of the SACCO sector and overburdening existing staff. However, SASRA Chief Executive Officer David Sandagi defended the authority’s operations, noting that investments in technology had helped bridge the gap.
“We have implemented an Enterprise Resource Planning system and a risk-based supervision platform which have improved efficiency despite the staffing challenges,” Sandagi told the committee.
The committee members remained unconvinced, questioning how the authority measures the productivity and well-being of employees working under such pressure.
An inquiry arose over a Sh20 million bank guarantee issued by the Development Bank of Kenya to an IT consultancy firm that failed to deliver on its contract. Despite a favourable court ruling and arbitration outcome in SASRA’s favour, the guarantee has remained unpaid since 2021.
“Under the Banking Act, such commitments should be honoured upon crystallisation. This guarantee has remained a mere piece of paper for four years,” Hon.Wangwe said, directing SASRA to enforce its immediate recovery.
Auditors further flagged irregular prior-year adjustments amounting to Sh70.4 million in 2022 and Sh3.1 million in 2021, where the authority failed to disclose adjustments and restate opening balances as required under International Public Sector Accounting Standards (IPSAS). Management acknowledged the omissions and promised corrective measures in subsequent financial statements.
Meanwhile, at the Nyayo Tea Zones Development Corporation, lawmakers questioned management over outstanding debts exceeding Sh17 million owed by Emrok Tea Factory and Elgon Tea Factory.
Chief Executive Officer Dr. David Chepkwony explained that the Emrok debt resulted from emergency green leaf supplies in 2019 after farmers blocked the corporation’s factory. However, MPs expressed concern over the Sh16 million owed by the non-operational Elgon Tea Factory and the corporation’s failure to provide for doubtful debts.
The committee also heard that about 3,000 tea bushes belonging to NTZDC were uprooted in Tharaka Nithi County during the construction of the Kirach Kiamuriuki–Gitogoto road, with compensation of Sh4.2 million yet to be paid after the county government claimed the bushes were on a road reserve.
At Sports Kenya, the committee scrutinised the award of a Sh45.8 billion stadium construction contract to China Road and Bridge Corporation through direct procurement despite the project’s original approved funding being Sh35 billion.
The Committee’s Vice-Chairperson and Saboti MP Hon. Caleb Amisi dismissed the justification that urgency warranted bypassing competitive bidding.
“Kenya is not at war and there is no catastrophe to justify direct procurement,” Hon. Amisi said.
Lawmakers also questioned the transfer of Sh2 billion from Sports Kenya to the Ministry of Defence to implement the project, terming the arrangement irregular.
“I have never seen something like this,” said Ndhiwa MP Hon. Martin Owino, questioning how payments for a Sports Kenya project could be processed through another ministry.
Hon. Wangwe warned that the committee would closely monitor the projects to safeguard public funds.
“These projects are important for our youth, but they must not be completed at an exorbitant price. This committee will not allow Sports Kenya to be used as a puppet for the parent ministry,” he said.
By Anthony Solly
