Sharp Daily
No Result
View All Result
Tuesday, October 7, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Audit reveals mismanagement of KES 2.1 billion coffee fund

Teresiah Ngio by Teresiah Ngio
October 24, 2024
in News
Reading Time: 1 min read

An audit by the Auditor General has revealed the improper investment of KES 2.1 billion from the Coffee Cherry Fund, intended to benefit coffee farmers. The funds were placed in a commercial bank, violating the directives of the National Treasury.

Auditor General Nancy Gathungu criticized the fund administrators for depositing KES 2,181,054,794 in a call account, instead of investing it in treasury bills or bonds through the Central Bank of Kenya (CBK), as instructed by a Treasury circular. “The farmers have not received value for their money due to this violation,” Gathungu stated in her report.

The March 26, 2018, Treasury circular directed state corporations and semi-autonomous government agencies to invest surplus funds in government securities such as treasury bills or bonds, bypassing commercial banks. It also required the retirement of any funds previously held in commercial bank fixed deposits, aiming to maximize returns for such funds. The use of intermediaries, such as commercial banks, was expressly discouraged.

Gathungu’s audit of the Coffee Cherry Fund’s accounts for the fiscal year ending June 30, 2023, highlighted irregularities in how the funds were handled, raising concerns over the fund’s management. She noted that the decision to place the money in a call deposit account deprived the fund and the farmers of potential returns from higher-yielding investments.

RELATEDPOSTS

NTSA

NTSA under fire for mismanagement of KES 1.19 billion smart driving licence project

July 8, 2024
The Royal Nairobi Golf Course next to Kibera

Troubled Kenyan Economy Needs a Lasting Solution

April 19, 2023

In addition, the audit identified KES 181 million in interest accumulated from the call deposit account, which had not been properly managed. Gathungu explained that the balances showed unapplied interest of KES 181,054,794, which remained unearned unless rolled over with the principal. “The improper management of this interest has denied the fund the opportunity to generate higher returns,” she said.

Previous Post

Environment ministry, Council of Governors join forces to tackle urban pollution

Next Post

BURN lands KES 1.94 billion investment from EIB to drive clean cooking in East Africa

Teresiah Ngio

Teresiah Ngio

Related Posts

News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025
News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025
Private equity investment business concept
News

Private equity and insurance

September 4, 2025

LATEST STORIES

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025

Post-September review: What CMMF did and what’s next

September 26, 2025

Strengthening water utilities through efficiency and accountability

September 26, 2025

Retirement Benefits Schemes Trustee Governance in Kenya

September 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024