Treasury Cabinet Secretary John Mbadi on Saturday dismissed allegations by Githunguri Member of Parliament Gathoni Wamuchomba that Ksh1.5 billion meant for coffee farmers was misused by the exchequer.

In a statement, Mbadi termed Wamuchoma’s sentiments as misleading and further clarified that no funds were misused under his watch.

According to the former Orange Democratic Movement (ODM) party chairperson, the Treasury declined a request by the Ministry of Cooperatives to transfer the funds to one of its departments.

Mbadi while insisting on the matter noted that the transfer of the Coffee Cherry Advancing Funds was rejected as it did not meet the requisite conditions for approval.

“The Treasury received such a request from the State Department for Cooperatives, advising them that the Ksh1.5 billion should remain dedicated to the Coffee Cherry Advance Revolving Fund's original purpose,” Mbadi stated.

“Upon careful review of the request, and in strict adherence to the PFM Act and the National Treasury's Circular No. 10/2024 on Guidelines for Budget Implementation, the Treasury declined the proposed reallocation,” he added.

The Treasury CS further revealed after rejecting the proposed reallocation, he advised the Ministry of Cooperatives that the funds would only be disbursed to support the coffee farmers.

While clarifying the matter, CS Mbadi also advised Kenyans including the media to report accurately and responsibly on issues involving public funds.

The CS noted that disseminating false information undermined the integrity of the country's financial systems and could cause unnecessary public concern.

"The National Treasury is always available to clarify any questions or provide further details to ensure that the public is well-informed with factual information," the CS noted.

"The National Treasury continues to uphold its commitment to transparency and accountability in managing public finances."