A comprehensive report from the National Assembly Public Debt and Privatization Committee has brought to light significant discrepancies in the disbursement of Ksh 213.24 billion in loans extended to Kenya between May 2022 and April 2023.

The report, presented before the House on Thursday, revealed that out of the total borrowed amount, only Ksh 24.2 billion had been disbursed during the specified period. This raised serious concerns among MPs, who emphasized that the slow disbursement rate, less than 11 percent, could adversely impact the timely repayment of the borrowed credit.

Committee Chairperson Abdi Shurie, also Balambala MP, expressed concern over the revelation, stating, "During the review of the loan reports, it was noted that only three loans totaling Kshs 24.2 billion had been partially disbursed, indicating a disbursement rate of less than 11 per cent, which was utilized in general budget support."

The MPs highlighted that this situation creates a precarious scenario for the country, especially considering that some of the loans may mature before being effectively utilized for their intended purposes.

In response to these findings, the MPs recommended that the Treasury submit timely reports to enable Parliament to closely monitor the disbursements. Treasury CS Njuguna Ndungu was further advised to develop and elucidate strategies to ensure prompt and effective disbursement of loans.

Chairperson Abdi Shurie reported, "The report also suggests that within 90 days, the National Treasury should fully digitize the loan approval monitoring system to enhance reporting, transparency, and accountability."

National Assembly Majority Leader Kimani Ichung'wah supported the initiative, emphasizing that these reports would facilitate the drafting of policies for future loans. He stressed the importance of timely submission and consumption of reports to keep the House and the nation informed about the current debt levels.

"The timely submission and consumption of reports by the House will help to inform ourselves and the Country where we are in terms of our debt levels so that we don’t find ourselves in a position where we continuously continue getting into debt problems without knowledge because we don’t have timely information," added the Majority Party Leader, urging the National Treasury to submit reports every quarter.

It's noteworthy that Kenya's debt portfolio currently stands at Ksh 10 trillion.