The Public Debt and Privatization Committee led by the Vice-Chairperson Hon. Makali Mulu (Kitui Central), met with officials from the Office of the Auditor-General, to be briefed on loans disbursed by the Government and commitment fees.

In the presentation made by the Director of Audit, Mr. Njoroge Waithima, as at 30th June 2022, a total of 21 loans had not been disbursed at all. Further, the Committee was told that the agreement dates for these loans fall between 1st January 2012, and 3rd March 2022. Out of the 21 loans, only three have attracted commitment fees totaling Kshs.226 million.

"It is worth noting that not all loans attract commitment fees and even when they do, some financiers like the International Development Agency (IDA), have sometimes waived them," said Mr. Waithima.

Mr. Waithima added that none of the loans had reached its maturity date as they will mature between 31st March 2032, and 15th December 2061.

Among the reasons the loans had not been disbursed include; delays in getting consultants on board, delays in achieving Disbursement-Linked-Indicators and delays in meeting precedent conditions.

In the same sitting, the Committee also considered a message from the Senate on the proposed amendments on the Public Finance Management (Amendment) Bill, 2023.The Senate proposes its inclusion in the oversight process of the implementation of the debt limit, whereby both Houses will be involved in approving and making resolutions on any remedial plans.