Deputy governor in trouble over deal inflated 50 times

Former Kenya Investment Authority (KenInvest) Susan Kikwai managing director risks arrest over payment of Sh10.6 million in a deal that ballooned nearly 50 times above the contract sum.

Parliament has recommended that Ms Kikwai, currently Kericho deputy governor, be surcharged over the payments that arose from her failure to settle a paltry Sh217,152 nine years ago for a consultancy service for the development of an investment policy framework.

The delayed payment saw the consultancy fees attract a monthly interest penalty of 3 percent, forcing the investment agency to pay the Sh10.6 million.

The National Assembly’s Public Investments Committee (PIC) chaired by Mvita MP Abdulswamad Nassir has directed the Ethics and Anti-Corruption Authority (EACC) to “investigate the former head and prosecute her if found culpable.”

PIC raised the red flag that Ms Kikwai made payment to a consulting firm in the financial year 2014/15 and 2015/16 worth Sh6,671,718 being accrued interest and legal fees and another Sh4 million later.

“The amount was due on or before January 8, 2011,” PIC said in its report on audited financial statements of 48 State corporations.

Mr Nassir said KenInvest delayed to issue instruction to its lawyers on the next cause of action even after they were reminded that the interest was accruing.

PIC said KenInvest lost funds due to negligence of the former managing director,and that the board should use appropriate means to recover the funds lost.