Ksh.179 million for European widows and orphans lying idle at CBK, Auditor General reveals

The Office of the Auditor General has raised concerns over millions of shillings lying idle at the Central Bank of Kenya (CBK) meant for catering to the widows and children of slain European officers in the East African Service
The Office of the Auditor General has raised concerns over millions of shillings lying idle at the Central Bank of Kenya (CBK) meant for catering to the widows and children of slain European officers in the East African Service.
According to Gathungu, the National Treasury had a balance of Ksh.179 million funds held at the CBK for the European Widows and Orphans Pension Fund by the end of the Financial Year 2023/24.
As disclosed in the statement of accounts, the Fund has only one surviving beneficiary who was paid Ksh.54,264 during the year.
This raised questions as to why the National Treasury would set aside millions for a Fund that only has one beneficiary.
Further, the AG questioned why the idle funds were not invested in interest-earning channels, hence losing an opportunity to earn a Ksh.21 million interest.
Interestingly, Gathungu noted that the government had sought guidance from the CBK on how to invest the funds.
“Although Management has indicated that the National Treasury had sought guidance from the Central Bank of Kenya on how to invest the funds, the matter had not been concluded as at the time of the audit in November 2024,” the report read in part.
“In the circumstances, the effective use of the Funds held in the bank could not be confirmed.”
Further, the AG also raised queries over the Asian Officers Family Pensions Fund, wondering why the Fund had been operating over the years without a Board of Trustees and hence breaching the law.
Corruption cases to be resolved in six months under new plan, AG Dorcas Oduor
Ruto hits out at Karua over the PLP party, is the party called Ruto?
Policeman shot dead by gunmen in Mandera town
No funds to clear Sh64 billion in unremitted capitation to schools; Treasury
Gachagua shares details of Pastor Dorcas past warning about Ruto
Two people killed, 10 others injured after bandits ambush bus in Samburu
The government sets aside funds to provide pensions to the beneficiaries of Asian officers previously employed in the Kenyan government.
The AG also revealed that Ksh.1 billion was also lying idle at the CBK meant for provident funds as the scheme did not make any payment during the year, with the statement claiming that no member or beneficiary was surviving as of June 30, 2024.
A provident fund is dedicated to catering to employees following their retirement or to the dependents in the case of the employee’s death.
“It was unclear why the idle funds were not invested in interest-bearing instruments. This may have led to a potential loss of interest estimated at Ksh.122 million using the average CBK rate of 11.875 percent,” the report read in part.
The revelation comes at a time when Kenya’s fiscal troubles are increasing, owing to debt-financed investments and infrastructure projects.
As a result, the country’s public debt ratio has risen from 41 percent of gross domestic product (GDP) in 2014 to 69 percent of GDP in 2024.
CJ Martha Koome and JSC members summoned
Government announces new maize seeds prices ahead of planting season
Win for government as High Court dismisses petition challenging privatisation of sugar factories
New details emerge after an autopsy on the body of slain Briton Campbell Scott
Warning issued to Kenyans traveling to Canada
Follow us