This decision halts the flow of funds intended for community-driven climate adaptation under the Financing Locally Led Climate Action (FLLoCA) program.
According to evidence, Kakamega County failed to fulfill its 2023/24 budgetary obligation to deposit Ksh 109 million into the FLLoCA account at the Central Bank of Kenya (CBK).
Instead, the county withdrew Ksh 60 million from the account shortly after receiving a Ksh 292 million transfer from the World Bank.
Investigations show that the funds were irregularly paid to companies including Waypoint Suppliers Kenya Limited (Ksh 16.7 million), Tonniesanto Investments (Ksh 13.6 million), Pan Pacific Kenya Limited (Ksh 22.3 million), and Actra Africa (Ksh 2.5 million).
These payments were ostensibly for projects such as solar installations for the Savona Water Supply project and electric fencing materials for the Kakamega Forest Reserve.
While these activities are related to climate adaptation, they were not part of the County Climate Actions Plan (CCAP) or subjected to the required Participatory Climate Resilient Assessment (PCRA).
In October, the National Treasury, acting on the World Bank’s concerns, froze all transactions from the Kakamega FLLoCA account.
It also issued a demand for the county to refund the Ksh 60 million withdrawn in violation of program guidelines.
Kakamega Governor Fernandes Barasa dismissed the allegations in a brief text message, stating: “That is not the true position…. the issue was the county to deposit counterpart funds of Ksh 60 million, which we agreed with National Treasury to do so in three installments.”
However, the controversy has deepened with Governor Barasa’s recent decision to reassign David Kulova Musafiri, the chief officer for environment and secretary of the County Climate Change Steering Committee (CCCSC).
Musafiri was transferred to Malava as a town manager, a move that has raised questions among stakeholders in the climate change sector.