Taxpayers are set to lose Sh208 million that was used by the government to purchase 1,050 egg hatching machines in 2012 as they have become obsolete.
Youth Enterprise Development Fund CEO Josiah Moriasi on Thursday told the National Assembly’s committee on Special Funds that they had made a resolution for the hatcheries to be disposed.
The hatcheries were to be to be issued to five youth groups in 210 constituencies for poultry business, but ended up gathering dust in stores in Kasarani and Mombasa.
Mr Moriasi said the fund had received clearance from the Treasury to dispose the machines but later the head of public service stopped the process until the merger of the three funds is complete.
Mr Moriasi said that despite the machines being obsolete, the fund is still paying Sh1 million annually storage fee to the Kasarani stadia management.
This means that the fund has so far spent Sh7 million on the hatcheries which were to empower the youth economically.
“The machines are there at Kasarani and we continue to get invoices from the stadia management to pay storage fee. We will dispose the machines even at a lower price,” Mr Moriasi said.
The CEO also admitted failure from the fund’s side for not providing adequate information to the youth on the usage of the hatcheries.
The committee chairman Kathuri Murungi (South Imenti) said there is no need for taxpayers to continue paying Sh1 million annually storage fee for hatcheries that do not benefit the intended group.
“We need to visit Kasarani and Mombasa to see the hatcheries because we might be paying storage fees for things that are not there,” Mr Murungi said.
Auditor General Edward Ouko in his report for the financial year 2014/2015 flagged Sh172 million relating to the purchase of the hatcheries that could not be traced.
Mr Ouko says in his report that the fund used Sh208 million to purchase 1,050 chicken hatching machines that were to be to be issued to five youth groups in 210 constituencies for poultry business.
However, only 144 hatcheries were given out. The 906 remaining hatches worth Sh172million were stored at Kasarani stadium at a cost of Sh1.2 million.
“As at June 30, 2015 only 144 hatcheries had been sold. That is about 13 per cent of the hatcheries of the 1,050 which were bought. It means the demand for them is very low and a greater amount can turn out to be obsolete due to the fast-changing technology,” reads the report.
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