How Kilifi County Microfinance (Mbegu) Board Members Looted The Fund

A recent report by the Auditor General for the financial year 2020/2021 has revealed how board members of the Kilifi County Microfinance (Mbegu) Fund benefited from irregular allowances. According to the report, there were some irregularities in the board expenses of Ksh. 1,087,167, with the board having spent Ksh. 415,390 on sitting allowance and another Ksh. 337,970 on lunch allowances.

The amount was paid to Kilifi County Microfinance (Mbegu) Fund Board and the Sub-county Micro-finance Committee members. However, the payments were made contrary to the provisions of Section 6(4) of the Mbegu Fund Act, 2016 as amended in 2018 which states, “The offices in the Board shall not attract any remuneration and Section 10(5) of the Fund Act, which also describes the offices in the Sub County micro-finance committee as not attracting any remuneration”.

County Microfinance (Mbegu) Fund is a Kilifi County Initiative mandated to provide financial and business development support services to youth-owned enterprises. The County executive committee member for finance oversees the performance of the activities of the fund.

In 2021, the County Government of Kilifi through the Kilifi County Micro-Finance Initiative (Mbegu Fund) gave Ksh. 60 million cheques to 456 groups and one Cooperative society to boost the local economy.

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