The Auditor General has flagged billions of shillings in unpaid car and mortgage loans issued to county officials, raising fresh concerns over financial mismanagement in devolved units.

According to Auditor General Nancy Gathungu’s reports for the year ending June 30, 2025, loans advanced to governors, MCAs, and senior county officials between 2013 and 2022 remain largely unrecovered, with weak or nonexistent recovery mechanisms.

The audit shows that some beneficiaries left office, died, or disappeared from county payrolls without clearing their debts.

“Some officers and MCAs passed on without repaying their loans, while others left office without settling outstanding balances,” the report states, citing gaps in loan management, insurance, and collateral.

In Mombasa County, Sh53.56 million issued under car and mortgage schemes remains unpaid. Four MCAs from the 2013–2018 term owe Sh6.43 million, two deceased MCAs owe Sh3.76 million, while a former member owes Sh959,720. Auditors note that recovery of the funds is “doubtful”.

Bungoma County has failed to recover Sh23 million advanced to former assembly members between 2013 and 2022. The audit questioned why loans were issued beyond officials’ terms of office, noting that no justification was provided.

In Uasin Gishu, Sh118.94 million in loans is classified as non-performing. A former governor defaulted on a mortgage that rose from Sh40 million to Sh64 million, exceeding the allowable limit by Sh24 million.

“The irregular top-up violated existing remuneration guidelines,” the report states.

Similar problems were recorded in other counties. Marsabit disbursed Sh26.89 million without insurance, Samburu issued Sh387.85 million without collateral, and West Pokot failed to insure loans worth Sh67.63 million.

Kajiado faces doubtful recovery of Sh14.38 million, Murang’a has two MCAs who defaulted on Sh1.97 million, while Nyamira reported Sh51.18 million in unpaid loans involving five former officers.

The audit also found that Kilifi lacked proper loan management policies, while Nakuru authorised Sh24.46 million in loan top-ups without supporting documentation.