Treasury refunds Sh2.6bn donor cash

The Treasury has refunded more than Sh2.6 billion in donor money meant for various development projects in Kenya that was misused.

The funds cover projects for poverty reduction as well as the education sector under the Kenya Education Sector Support Programme (KESSP).

According to a letter by Finance PS Joseph Kinyua addressed to World Bank country director Johannes Zutt, the funds that are being refunded are those spent on ineligible expenditures.

This came as governance NGOs criticised the government for using public money to repay funds that were misappropriated.

“We would like to reiterate the Kenya Government’s commitment to refund the International Development Association (IDA) and other development partners those funds spent on expenditures that have been verified and confirmed to be indeed ineligible,” said Mr Kinyua.

The letter gives a breakdown of the Sh2.6 billion that Treasury has refunded and the various development partners who are owed.

The letter is copied to head of Britain’s Department for International Development (DfID) in Kenya Alistair Fernie, Canadian International Development Agency’s Melanie Boyd and Ms Olivia Yambi of the United Nations Children’s Fund (UNICEF), among others.

Treasury has paid Sh40 million to the IDA arm of the World Bank for the Arid Lands Resource Management Project.

Education officials

In addition, Mr Kinyua disclosed in the letter that the Treasury had refunded Sh348 million under KESSP.

A Treasury audit revealed that Sh4.6 billion was lost in a corruption scandal involving senior education officials. (READ: FPE scandal heat turns on heads)

Of the amount, about Sh164 million was paid to DfID on Monday, topping up the Sh14 million refunded in July. The Canadians too got a refund of Sh47 million.

The breakdown of the refundable amounts also includes IDA, which was paid Sh144 million, and UNICEF which has received Sh1.8 million.

Kenyan taxpayers will also have to settle Sh2.1 billion bill owed to donors under the Education for All Fast Track Initiative. (READ: Why should taxpayers refund stolen money?)

The government has also refunded to the donors Sh50.8 million meant for the Western Kenya Community-Driven Development and Flood Mitigation Project