Vihiga County government employees have been relieved from repaying Ksh1.9 million in salary loans following the destruction of key financial records in a mysterious fire.
The County Public Accounts Committee (CPAC) confirmed that the Auditor-General’s report for the 2024/25 financial year shows that only Sh85,000 had been recovered from loans advanced between 2015 and 2017, prompting the Committee to direct Governor Wilbur Ottichilo to surcharge accounting officers responsible for the unrecovered funds.
Fire Destroys Records, Recovery Efforts Hampered
Governor Ottichilo defended the slow recovery, saying efforts were hindered after a building housing crucial financial documents was gutted by fire.
He added that some beneficiaries denied receiving the loans and demanded proof from the county.
“The County Attorney wrote to the individuals, and they responded by demanding evidence from the county that they had borrowed the money,” the Governor said.
Senator Okong’o Omogeni questioned whether the officers who approved the loans were still in service and criticised the County Attorney for failing to act for nearly a decade, raising concerns that the matter may now be time-barred under the Limitation of Actions Act.
Senator Johnes Mwaruma added that the destruction of records could not justify non-recovery, as funds were disbursed directly into beneficiaries’ bank accounts.
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Vihiga Accounting Officers to Be Surcharged
Citing the Public Finance Management Act, CPAC emphasised that accounting officers who approve advances are responsible for recovery.
Senator Moses Kajwang noted that public finance regulations allow officers to be surcharged for failing to recover public funds.
“The answer lies in the public finance regulations. The accounting officers who approved these advances must be surcharged for failing to recover the money,” he said.
The Committee also directed Governor Ottichilo to take action against officers who authorised the release of Sh5 million for a County Assembly Speaker’s housewarming party, despite Vihiga County facing severe financial constraints.
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CPAC described the expenditure as unjustified, noting the county’s pending bills had ballooned to Sh1.7 billion by June 30, 2025.
Governor Ottichilo acknowledged the irregularities and said he would act after consulting the Committee.
“I had planned to take action, but I decided to first listen to the views of the Committee,” he said.
While he maintained he could not fully account for how the County Assembly spent the money, he claimed part of the funds was used for the Speaker’s house-opening activities.
The Committee dismissed this explanation, citing the county’s financial statements.
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