MPs summon Mbadi over affordable housing cash

Members of Parliament have summoned Treasury Cabinet Secretary John Mbadi to appear before them over claims that the ministry is reluctant to release Sh25 billion belonging to the State Department for Housing and invested in Treasury bills.

The alleged reluctance, according to Housing Principal Secretary Charles Hinga, risks stalling President William Ruto’s ambitious affordable housing programme.

The Housing Committee, in a sitting chaired by Buuri MP Mugambi Rindikiri, also invited Treasury Principal Secretary Chris Kiptoo to appear alongside Mbadi.

The committee said it would ensure the multi-billion-shilling project does not stall.

Hinga told the committee that the matter was urgent, hence the need for the Treasury officials to appear in person and explain the delay.

“The National Treasury is playing games and you cannot continue to manipulate our thinking. Our CS and PS should know this,” Rindikiri said.

“As you have heard, we will now summon the CS and the PS to come here and address this matter.”

“The National Treasury should know that we represent the people of this country and we are not employees of the National Treasury. This money they are holding is for the people of this country,” he added.

Kipkelion East MP Joseph Cherorot suggested the situation could amount to sabotage, calling for a speedy resolution.

“It can be seen as a form of total sabotage given the impact the project is making,” he said.

Kaiti MP Joshua Kimilu questioned how the National Treasury was frustrating the department’s access to its own funds.

Hinga told the committee that Treasury has not allowed the department to access the money, even though the bills had matured and were not intended for reinvestment.

“If this programme stalls, it would mean that we would not pay anyone for three months. Where will we take all these young people? It is not just about the fiscal space but the economy,” Hinga said.

He said he had written to Treasury seeking the release of the funds, highlighting the risks posed by the delays.

“The State Department for Housing will not be able to pay contractors or spend the Sh6 billion generated monthly from the Housing Levy for the months of April, May, and June 2026 due to the constraint of fiscal space,” he said.

“This issue must be sorted out because it is money that was already appropriated. The Sh25 billion we are requesting will affect the fiscal framework, which is sensitive to the National Treasury and the country. All ongoing projects risk stalling, and the impact could be significant.”

Hinga explained that the investment in the 90-day Treasury bills cannot be rolled over, yet accessing the funds has been difficult as they were not factored into the Supplementary Budget.

“Given the scope of work for the programme, the department is seeking an enhanced budgetary provision of Sh25 billion under Supplementary I Estimates for the financial year 2025/26 to facilitate smooth implementation. The funding will be raised from Housing Levy investments,” he told MPs.