The Senate Committee on County Public Investments and Special Funds highlighted that Machakos County has kept Ksh96 million with SBM Bank as security for an employee car and mortgage loan scheme since 2019.

Auditors reported that only Ksh55.3 million of the secured amount has been disbursed to six county employees, while the remainder remains idle in the bank account.

Committee Vice‑Chairperson Beth Syengo warned that public funds should not sit idle without earning interest and called for a review to ensure value for taxpayers.

Governor Wavinya Ndeti defended the arrangement, stating the money serves as collateral enabling SBM Bank to lend from its own resources, but she acknowledged the concerns and said the county is engaging the bank to renegotiate the terms.

Broader concerns about the scheme’s reach and county finances

Senator Agnes Kavindu urged that the scheme be widened to benefit more county staff, emphasizing that public resources must serve employees fairly and sustainably.

Senator William Kisang demanded documentation of the revised agreement, negotiation records, and a loan book to verify how the secured funds are being utilized.

The committee also flagged unrelated issues, including incomplete municipal asset registers, non‑compliance with revenue accounts, and failures to meet diversity and disability representation targets in county recruitment.

Committee directives and upcoming steps

The Senate committee instructed Machakos County to renegotiate the security arrangement with SBM Bank, submit a revised draft agreement and a detailed loan book, complete valuation of municipal assets, and ensure future recruitment complies with diversity requirements.