The Office of the Auditor General has raised concern over millions lying idle at the Central Bank of Kenya (CBK) without any plans to invest on them.
The Auditor General was referring to Ksh 179 million meant to the widows and children of slain European officers in the East African Service for the financial year ending 2023/24.
According to Nancy Gathungu, the fund has only one beneficiary who was paid Ksh 54, 264 at the end of the year raising questions as to why National Treasury will keep the fund when it only has one beneficiary.
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She continued by taking another shot at Treasury as to why the millions were not invested so as to earn an additional Ksh 21 million in return.
It has however been revealed that the government had sought the guidance of CBK as to how to reinvest the millions held in the fund.
“Although Management has indicated that the National Treasury had sought guidance from the Central Bank of Kenya on how to invest the funds, the matter had not been concluded as at the time of the audit in November 2024.” read the report
Gathungu also questioned the Asian Officers Family Pensions Fund as to why it was operating without a Board of Trustees something that is against the law.
The fund set aside by the government to benefit Asian officers previously employed in the Kenyan government has Ksh 1 billion lying idle at CBK. The fund has also not made any payment so far with records revealing that there is no surviving member of the fund.
In total, the Auditor General revealed that the government has lost Ksh 122 million in interest if they had invested the money.
“It was unclear why the idle funds were not invested in interest-bearing instruments. This may have led to a potential loss of interest estimated at Ksh.122 million using the average CBK rate of 11.875 per cent,” read the report
