Treasury Cabinet Secretary John Mbadi denied allegations made by Githunguri Member of Parliament Gathoni Wamuchomba that the exchequer misappropriated Ksh1.5 billion intended for coffee farmers.
Mbadi said in a statement that Wamuchoma’s sentiments were misleading and that no funds were misused while he was in office.
According to the former Orange Democratic Movement (ODM) party chairperson, the Treasury denied a request from the Ministry of Cooperatives to transfer the funds to one of its departments.
Mbadi insisted on the matter, stating that the transfer of the Coffee Cherry Advancing Funds was rejected because it did not meet the approval conditions.
“The Treasury received such a request from the State Department for Cooperatives, advising them that the Ksh1.5 billion should remain dedicated to the Coffee Cherry Advance Revolving Fund’s original purpose,” Mbadi stated.
“Upon careful review of the request, and in strict adherence to the PFM Act and the National Treasury’s Circular No. 10/2024 on Guidelines for Budget Implementation, the Treasury declined the proposed reallocation,” he added.
After rejecting the proposed reallocation, the Treasury CS informed the Ministry of Cooperatives that the funds would only be used to support coffee farmers.
While clarifying the situation, CS Mbadi urged Kenyans, including the media, to report accurately and responsibly on issues involving public funds.
The CS stated that spreading false information jeopardized the integrity of the country’s financial systems and may cause unnecessary public concern.
“The National Treasury is always available to clarify any questions or provide further details to ensure that the public is well-informed with factual information,” the CS noted.
“The National Treasury continues to uphold its commitment to transparency and accountability in managing public finances.”
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