The controversy surrounding the request for reallocation of Sh1.5 billion from Coffee Cherry Advance Revolving Fund has taken a new twist with Treasury denying effecting it.
Treasury Principal Secretary Chris Kiptoo said the Sh5 billion allocation in the Coffee Cherry programme was intact, saying the request by the Cooperatives department had been unsuccessful.
He said claims of reallocation were misleading as no funds had been diverted or misused.
The PS said the request for re-allocation of Sh1.5 billion from the coffee cherry programme to support a number of development projects in the sub-sector was received.
The PS added that the reallocation request from his colleague, Cooperative PS Patrick Kilemi was disapproved and communication made on September 2. He explained that funds set aside for specific purposes cannot be reallocated without explicit approval.
In a press release dated September 14, Kiptoo said claims by the Githunguri MP Gathoni Wamuchomba were misleading, adding that the allocation of Sh6.5 billion remains intact as approved in the FY 2024/2025 budget.
“We would like to reassure the public and all stakeholders that the Sh5 billion allocated for the Coffee Cherry Advance Revolving Fund Sh3 billion, and Payment of Coffee Debts Sh2 billion, as part of the Approved Budget for 2024-2025 financial year, remains fully intact,” the PS said.
Reached for comment, Wamuchomba said re-allocation of finances requires approval by Parliament.
“We need to amend the regulations to ensure there is sanity in the administration of public funds and ensure there is public participation,” said Githunguri MP.
She said the re-allocation of coffee resources to unrelated enterprises was a plot to cause disaffection with Deputy President Rigathi Gachagua in the Mt Kenya region.