MPs fault Women Fund over Ksh600M digital loan mess

The National Assembly’s Special Funds Accounts Committee has raised serious concerns over the Women Enterprise Fund’s (WEF) management of digital loans worth more than Ksh600 million, faulting the agency for failing to account for the disbursed funds and the status of repayments.

Appearing before the Committee on Tuesday, August 5, 2025, WEF Chief Executive Officer Rachael Musyoki admitted that the Fund was struggling to recover a significant portion of the loans issued via digital platforms, despite working in partnership with Safaricom PLC to distribute the funds.

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“We acknowledge that loan recovery has been a challenge, especially through digital channels,” Musyoki told MPs. “But we are committed to recovering the funds and have put mechanisms in place, including physical audits and legal action where necessary.”

However, the lawmakers questioned the credibility of those efforts, arguing that the Fund had failed to present a clear recovery strategy or demonstrate how it would trace defaulters who received the funds through mobile lending.

“We want to know the identities of the beneficiaries, their repayment status, and the measures being taken to recover public funds,” said Kivasu Nzioka (Mbooni). “It’s unacceptable that over Ksh600 million was disbursed without a concrete recovery plan.”

The Committee also took issue with WEF’s delayed automation of its accounting systems, despite having procured ERP 360 nearly three financial years ago. MPs demanded that the Fund submit all payment records made to the system provider within seven days.

Further scrutiny was directed at the Fund’s training budget, which ballooned from Ksh31 million in the 2022/2023 financial year to KSh58 million in 2023/2024. Lawmakers accused the management of failing to produce evidence, such as training reports, minutes, and attendance records—to prove the sessions occurred or were aligned with policy.

Committee Chair Fatuma Zainab (Migori) underscored the importance of accountability, saying:

“This fund was established to empower women. It must not become a black hole for taxpayers’ money.”

The Committee is expected to review further documentation before tabling its final recommendations in the House.