Kenya’s Commodities Fund Faces Questions Over KSh1bn Sugar Loan Transfer Gap

Kenya’s Commodities Fund Faces Questions Over KSh1bn Sugar Loan Transfer Gap

July 29, 2026
By Mintesinot Nigussie

Kenya’s Commodities Fund has been asked to explain a KSh1 billion (about 7.7 million US dollars) discrepancy linked to the transfer of the former Sugar Development Fund’s loan portfolio to the Kenya Sugar Board, as lawmakers scrutinise the agency’s financial statements for the 2024/25 financial year. The Special Funds Accounts Committee, chaired by Vice Chairperson Rahim Dawood, raised concerns over inconsistencies in documents presented to support the transfer of the sugar loan book, which was moved to the Kenya Sugar Board on July 1, 2025, following a directive from the National Treasury.

Appearing before the committee, Commodities Fund chief executive Nancy Cheruiyot responded to audit queries regarding the fund’s outstanding receivables, financial sustainability and the transfer of sugar-related loans. According to the Auditor-General’s report, the fund’s non-current receivables stood at KSh9.2 billion (about 71 million US dollars), with the sugar loan portfolio accounting for KSh7.5 billion (about 58 million US dollars) before the transfer.

Committee members questioned whether the documentation provided clearly established the amount approved for transfer. They directed the Commodities Fund to submit official correspondence confirming the exact value of the loan book handed over to the Kenya Sugar Board. Kivasu Nzioka, a committee member, said the letters presented by the fund did not specify the precise amount approved for transfer, making it difficult for lawmakers to verify the transaction.

Dawood also questioned the difference between the figures presented, asking officials to explain the apparent KSh1 billion (about 7.7 million US dollars) gap before the committee concludes its review of the Auditor-General’s findings. The committee has directed the fund to provide additional documents and detailed reconciliations to clarify the transfer and support further examination of the audit findings.

Source: FSX Business News