Uhuru-era policies and 'roadside' declarations haunted by queries

Policies and declarations made under former President Uhuru Kenyatta’s regime have now returned to haunt parastatals and State corporations, years later.

Public institutions that were beneficiaries of the former Head of State's benevolence and subject to his ‘roadside’ declarations have found themselves at the centre of scrutiny from public watchdog committees in Parliament.

Bound by the actions of their predecessors, officials at the helm of these public institutions are now confronted by audit queries stemming from prior years and which threaten to have them censured.

Moi University and the Kenya Ports Authority (KPA) are such institutions that are currently feeling the heat and have had to defend themselves before separate teams at the National Assembly.

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The university is currently being questioned over how a Sh3 billion loan it secured through the alleged help of President Uhuru Kenyatta from Exim Bank was used for the revival of a cash-strapped Rivatex company.

“The previous Jubilee administration sought to revive Rivatex and former President Uhuru Kenyatta agreed to connect us to the Exim Bank to buy equipment,” said Moi University Vice Chancellor Isaac Kosgey earlier this week.

Kosgey had appeared before the National Assembly’s Public Investments Committee on Education, where it was unearthed that the university bought Rivatex textile company for Sh600 million in 2008 and soon, the Treasury secured the loan, for its revival.

He was confronted with tough questions on how the institution planned to repay the loan and pressed to substantiate whether the decision to purchase and revamp Rivatex —  by an institution that is now struggling — was a good move.

“Instead of pumping the Sh3 billion into meeting the urgent needs of students, the university chose to buy a company that was not functional. Why? It seems there is more than meets the eye here,” posed committee chair Jack Wamboka.

Kosgey, however, held his own in his response. He submitted that the university as a parastatal acquired Rivatex as a training centre for textile engineering students, and which they would then use for the production of fabrics.

 “We were not bedevilled by liquidity issues when the university decided to buy the textile firm.

“Up to 2008, we had money and the decision to buy Rivatex was to ensure we had a laboratory for our students. In 2017, the government came in and we spent Sh600 million on the purchase,” added the VC.

He also revealed that Rivatex has since been delinked from the university and is working with the Treasury and Ministry of Industry to have the Sh600 million loan reverted to it. 

Kosgey is however still scratching his head on how the Sh3b loan which matures next year will be repaid.

On the other hand, KPA’s top brass is on the spot over a 2019 directive by former President Uhuru Kenyatta to employ 52 people who lacked academic qualifications in a process that was against the law.

It emerged that while implementing the directive by Uhuru, KPA did so without following the law which requires the positions are advertised and a competitive recruitment process initiated.

According to an audit report for the 2019/2020 and 2020/2021 financial years which is being considered by the committee, the 52 staff were recruited in accordance with a presidential directive through a letter reference MOT/C/SM/0042VOL.II/65 dated October 22, 2019.

“The new staff were recruited in contravention of the authority’s scheme of service which requires a minimum qualification of D (plain) in Kenya Certificate of Secondary Education to be employed as choir members. Consequently, management is in breach of the law,” reads the audit report.

And the National Assembly’s Public Investment Committee on Energy, while questioning KPA Managing Director William Ruto earlier this week, heard that the workers were initially employed as choir members but were soon transitioned to dock workers.

“The workers are employed as port workers but whenever there is an event they then entertain our guests,” said Ruto.

Committee chair David Pkosing noted that whereas the managing director had no room to ignore the presidential directive, the appointments should have been made in line with the law.

“We need the names of all those who were employed under this directive by Wednesday. If we find out that they have been earning irregularly, then the person who signed their letters should be sanctioned,” said committee chair David Pkosing.

He further told Ruto to furnish the committee with a letter of the directive.

And in a shocking turn of events, Laikipia West MP Mwangi Kiunjuri suggested that former President Uhuru be summoned for questioning.

“We need to summon the then sitting President as well as the head of the civil service,” he said.

Aldai MP Maryanne Kitany said; “presidential directives are always verbal but always followed by a letter from the office of the President. We need you to provide this letter.”