Lawmakers have opened a probe into the State Officers and Public Officers Motor Car Loan Scheme Fund after it emerged that over Ksh3 billion is lying idle in the fund.

 The MPs who are members of the Special Funds Accounts Committee chaired by Migori Woman Representative Fatuma Zainab questioned the relevance and viability of the scheme following the low uptake of loans by state officers and public officers.

 The probe by the MPs came after Acting Chief Executive Officer Edna Atisa, told the Committee that as of June 30, 2023, only Sh 225 million had been used.

 She attributed the low uptake to limited awareness of the fund among public servants and further stated that efforts to increase visibility through sensitization campaigns had been implemented.

 She noted that the fund has developed a Strategic Plan to boost loan uptake including automation of services, uploading loan information to the Government Human Resource Information System (GHRIS) as well as a review of existing regulations, and ongoing lobbying with the Salaries and Remuneration Commission (SRC) to revise loan thresholds and conditions.

She said: “The Fund performance has since improved following aggressive sensitization campaigns. As at February 28, the Fund had processed and issued Loans amounting to Sh700,696,442.”

Performance improved

But despite her assurance that the fund’s performance had improved, the MPs sought to know why the fund had received such low uptake from eligible state and public officers.

 They emphasized the importance of ensuring that public resources are actively serving their intended purpose and not left unused, especially when they can support the welfare of public officers and thus instructed the fund’s management to provide evidence linked to the fund’s financial activities.

 The committee’s sessional chair and Mbooni MP Kivasu Nzioka insisted on the importance of ensuring that public resources are actively serving their intended purpose and not left unused, especially when they can support the welfare of public officers.

 He stressed on the importance of ensuring public funds are well managed and utilised.

 Asked Nzioka : “What measures have management taken to ensure it delivers on its core business? and why has the management resorted to investing the funds in Treasury Bills to avoid keeping the money idle?.”

 He a regretted that although the Secretariat of the Fund had processed 66 applications for loans totaling to Sh141,313,804, the performance of the Fund still remained relatively low at 3.81 in comparison to the cash and cash equivalents amount of Sh 3 billion held in the bank’s accounts