The Special Funds Accounts Committee has halted its planned session with the Financial Inclusion Fund after it emerged that the Fund’s management failed to respond to 21 audit queries for the 2022/2023 financial year, despite having more than a year to provide the required information.
The Committee, chaired by Hon. Fatuma Zainab, described the situation as unacceptable, saying that the Fund’s leadership had repeatedly ignored requests for critical documentation needed by both the Office of the Auditor-General and Parliament.
Hon. Fatuma remarked that what unfolded before the Committee amounted to a mockery of Parliament’s oversight mandate. She directed the newly appointed CEO, Henry Tanui, to reappear before the Committee within seven days and bring all outstanding documents without fail.
Key Questions MPs Want Answered
Members demanded full disclosure of several items, including:
- A complete and verified list of all Hustler Fund beneficiaries
- Records showing the status of unrecovered loans
- Documentation on the KSh12.6 billion that is not currently in circulation
- Bank confirmations on the balance remaining in the Fund’s accounts
Lawmakers questioned why these documents had been withheld for over a year, with some expressing suspicion that the opacity could mask potential misuse or misallocation of public money.
Vice Chairperson Hon. Rahim Dawood said the Committee believes some funds may have been disbursed to fictitious accounts. He added that repeated attempts to obtain accountability documents had been stonewalled and accused the Financial Inclusion Fund’s parent ministry of hiding behind the CEO.
CEO Defends the Fund but MPs Unconvinced
CEO Henry Tanui maintained that no money has been lost. He said the Fund received KSh14 billion from the Exchequer and that only KSh1.4 billion is currently in circulation. He also clarified that loan recoveries are tied to ID numbers and that the records exist.
However, MPs insisted that unrecovered loans still represent public money at risk. They further argued that without documents showing who received loans and the status of repayments, there is no basis to accept the CEO’s assurances.
Calls for a Special Audit Intensify
Several MPs signaled that a special audit may be unavoidable. They questioned whether the funds that are not in circulation are still intact, whether the disbursements adhered to due process, and why a publicly funded programme continues to operate without producing basic accountability records.
Hon. Fatuma said this is the final chance for the Fund to redeem itself through transparent disclosures. She emphasized that Parliament must account to taxpayers and that the Committee will not accept incomplete or evasive documentation when it reconvenes next week.
The Committee is expected to make further determinations after receiving the documents, including whether to escalate the matter to a special forensic audit.
