The Public Accounts Committee has raised serious concerns over billions advanced to Kenya Airways, the purchase of Telkom Kenya shares, and avoidable legal costs tied to delayed payments, during scrutiny of the National Treasury’s audit for FY 2023/2024.
Vice Chairperson Amina Udgoon Siyad said the audit revealed “very serious questions of accountability,” including KSh10 billion issued to Kenya Airways in 2022/23 as an on-lent loan — part of a KSh41.27 billion total disbursement made between 2019 and 2022.
Lawmakers were stunned to learn the loans were released before any formal agreements were signed. Accrued interest raised the KQ liability to KSh43.048 billion by December 2022, with the Government also paying KSh12.326 billion to settle a defaulted foreign loan.
The Auditor-General reported no repayment plan, no security and no documentation confirming recoverability of the KSh55.37 billion owed by KQ.
The Committee also questioned the KSh6.196 billion Telkom Kenya share buyout executed under Article 223, which Parliament never approved.
A further KSh97.27 million in interest and legal fees was incurred due to delayed settlement of a contractor’s payment — costs MPs described as unnecessary and avoidable.
PAC has directed the Treasury to table all loan agreements, repayment frameworks, and Article 223 justifications.
