Homa Bay Governor Gladys Wanga is facing fresh scrutiny after revelations that her administration secured an Sh 820 million mortgage loan for the construction of the county headquarters in violation of the Constitution.
The loan, obtained from the County Pension Fund, has triggered questions over both legality and cost inflation, with the National Treasury confirming that it never issued the required guarantee for the borrowing.
This directly contravenes Article 212 of the Constitution, which clearly states that a county government can only borrow money if the national government guarantees the loan and the county assembly approves it.
Principal Secretary for the National Treasury, Dr Chris K. Kiptoo, confirmed in writing that no such guarantee was issued for Homa Bay’s loan. His response came after a community-based organisation, Interface Community Help Desk, wrote to the Treasury seeking clarification on whether the borrowing was constitutional and whether the necessary approvals had been obtained.
Dr Kiptoo stated that the national government had not provided a guarantee for the mortgage loan and referred further questions about approvals, feasibility studies, and risk assessments to the county government itself.
Beyond the legality of the loan, concerns have also emerged over the project’s budget. Sources within the county and assembly say the Bill of Quantities presented to the county cabinet was initially set at Sh 520 million. However, the loan figure stands at Sh 820 million, meaning an unexplained additional Sh 300 million was added.
National Treasury Principal Secretary Dr Chris Kiptoo. Photo courtesy (Wikipedia)
Assembly sources claim the first approval for the project was actually Sh 280 million and that no formal variation or supplementary approval was sought.
This raises serious procurement concerns as the Public Procurement and Asset Disposal Act limits variations to 25 percent, and anything above this requires fresh approval by the assembly.
The sources argue that the Finance Department should have returned to the assembly to seek this additional approval but failed to do so, leaving the process both questionable and potentially unlawful.
They have called for the Ethics and Anti-Corruption Commission (EACC) to investigate the matter and hold those responsible to account.
The controversy highlights deeper issues around transparency and financial discipline in Homa Bay under Governor Wanga’s leadership.
Securing a loan without the national government’s guarantee not only breaches the law but also exposes the county to financial risks and liability.
At the same time, unexplained budget increases for a public project fuel suspicions of inflated costs and possible mismanagement of public funds.
When contacted for a response to the allegations, County Executive Committee Member for Finance, Mr Solomon Obiero, did not reply to messages.
The silence from county officials leaves the public without clear answers, deepening mistrust over how taxpayer funds are being handled. For many residents, the situation raises the question of whether the Sh 820 million project is genuinely about development or if it has become another channel for financial misuse within county government.
