The Senate Committee on County Public Investments and Special Funds has challenged Kitui Governor Julius Malombe to take decisive action over massive loan defaults at the Kitui County Empowerment Fund and unresolved asset and land ownership issues at the Kitui County Textile Centre (KICOTEC).

During a follow-up meeting at Bunge Tower on Tuesday, August 11, 2026, the Mwaruma-led committee reviewed implementation of House resolutions arising from Auditor-General reports. Senators were informed that KSh164.9 million, equivalent to 96.83 per cent of outstanding Empowerment Fund loans, remains unpaid.

Committee Chairperson Senator Johnes Mwaruma called for concrete evidence of debt recovery, including demand letters, engagements with beneficiaries and clear recovery timelines. Senator Beth Syengo questioned the sustainability of the revolving fund, saying the high level of defaults raised serious accountability concerns.

The committee also raised concerns over KICOTEC, particularly unresolved ownership of assets and the land on which the textile centre stands. The Auditor-General had previously been unable to confirm property, plant and equipment valued at KSh55.5 million, although the county said it had undertaken valuation and asset reconstruction.

Governor Malombe acknowledged the challenges and said corrective measures were already being implemented, including the constitution of the KICOTEC Board, strengthening of management and improvement of internal systems.

On the land dispute, Malombe said he would personally engage the community with the aim of building trust and finding an acceptable solution within 90 days.

The Senate committee directed the county government to intensify recovery of the outstanding loans, resolve KICOTEC’s land tenure issues, appoint a substantive Chief Executive Officer within 90 days and submit all outstanding documentation. The Auditor-General is expected to conduct further verification, while the committee plans to undertake a site visit to Kitui.