Treasury Permanent Secretary Dr Chris Kiptoo has denied claims that Sh 1.5b had been siphoned from the Coffee Cherry Advance Revolving Fund meant for coffee farmers.
He said the Sh 5billion allocated to the Coffee Cherry Fund Advance Revolving Fund remains fully intact.
“No funds have been re-allocated, diverted or misused in any way. The funds remain intact,” said the PS in a statement.
He said the National Treasury will continue to uphold its commitment to transparency and accountability in managing public finances.
Githunguri MP Gathoni wa Muchomba kicked off the storm after she alleged that there was a grand scheme to steal Sh 1.5billion from the coffee cherry fund.
She alleged a request by Cooperatives Permanent Secretary Patrick Kilemi for re-allocation of Sh 1.5 billion from the Cherry Fund without following proper procedures was a coverup from theft.
But in the swift rejoinder PS Treasury acknowlegded receing the letter asking for re-allocations of the Sh 1.5billion but he declined to allow the request.
The PS said the request proposed re-allocation of the Sh 1.5billion from the Coffee Cherry Fund to support a number of development projects in the sub-sector.
He said upon careful review of the request, the National Treasury declined the request because it offended legal guidelines and the PFM Act.