By The Weekly Vision Reporter
The National Assembly Public Accounts Committee (PAC) on Tuesday, 18 November 2025, raised serious concerns over billions of shillings advanced to Kenya Airways, the controversial purchase of Telkom Kenya shares, and avoidable expenditure arising from the delayed settlement of court awards while examining the National Treasury’s audit for the financial year ended June 2024.
The session, chaired by the Committee’s Vice-Chairperson and Garissa County Woman Representative Amina Udgoon Siyad, scrutinised findings by the Auditor-General that pointed to possible loss of public funds, unapproved spending, and breaches of financial management laws.
“We are dealing with very serious questions of accountability,” Siyad told Treasury officials. “These are huge sums of public money, and Kenyans deserve clear answers on where their taxes are going.”According to the audit, the National Treasury transferred KSh 10 billion to Kenya Airways in 2022/2023 as an on-lent loan, bringing the airline’s total loan exposure to KSh 41.27 billion disbursed between 2019 and 2022.
PAC heard that the loans were released before any formal loan agreements had been signed, a revelation that left lawmakers stunned.“This Committee finds it unacceptable that billions were disbursed without signed agreements,” Siyad said. “How does the Treasury justify lending public money informally?”Auditor-General Nancy Gathungu further reported that accrued interest and penalties had pushed the accumulated loan balance to KSh 43.048 billion by December 2022.
In addition, the government paid KSh 12.326 billion on behalf of the national carrier to settle a defaulted foreign loan, including KSh 7.8 billion spent under Article 223 of the 2010 Constitution. A representative from the Auditor-General’s office informed the committee: “We saw no documentation showing how the Treasury intends to recover these amounts from Kenya Airways.
There is no repayment plan, no security offered, and no formal agreement. ‘Consequently, the audit concluded that the recoverability of KSh 55.37 billion owed by Kenya Airways “could not be confirmed. ’PAC also examined the Treasury’s expenditure of KSh 6.196 billion to acquire a 60 per cent stake in Telkom Kenya, a transaction executed under Article 223. Although the National Treasury later sought parliamentary approval, MPs noted that the National Assembly had never approved the spending.“This is a clear breach of the law,” remarked Funyula MP Dr Wilberforce Oundo.
“You cannot spend over six billion shillings and then expect Parliament to rubber-stamp it afterwards.”The Auditor-General confirmed that the propriety of the entire expenditure could not be authenticated, stating: “Parliament’s approval is not optional. Without it, the transaction remains irregular.”The audit further highlighted wasteful expenditure caused by delayed payment to a contractor, resulting in KSh 97.27 million in interest and legal fees.
The Ministry had acknowledged owing KSh 235.6 million, but its failure to settle the debt promptly led to a court award of KSh 327.19 million.“This is a classic case of negligence,” Siyad said. “Taxpayers should not bear the burden of interest and legal fees that could have been avoided through timely action.”She directed Treasury officials to table all relevant documentation, adding: “We want to see the loan agreements, the repayment frameworks, and the justification for invoking Article 223. If this paperwork does not exist, then someone must be held accountable.”
