Parliament has raised serious concerns over political interference, weak governance, and lack of a legal framework at the National Economic Empowerment Fund (NEEF), warning that the problems are undermining the institution’s performance.
The Parliamentary Committee on Statutory Bodies and State Enterprises said NEEF is operating without an Act of Parliament, leaving it exposed to political influence and poor accountability.
Committee chairperson Ayuba James said there are no laws preventing politicians, including cabinet ministers, from accessing loans meant for the poor, contrary to the fund’s empowerment mandate.
The committee also criticised repeated rebranding, from MARDEF to MEDF, then NEEF, and the latest proposal to revert to MEDF following the Democratic Progressive Party’s return to power, describing the changes as wasteful and politically driven.
James said rebranding comes with high costs, including changes to infrastructure, vehicles, and materials, without altering services or objectives, making it unjustifiable.
NEEF Chief Executive Officer Kayisi Sadala acknowledged the challenges, attributing them to political interference and the absence of enabling legislation, and said the institution currently operates under a presidential directive.
Sadala said NEEF has intensified loan recovery efforts to address rising defaults, warning that failure to repay loans threatens the sustainability of the fund, whose loan portfolio stands at about K240 billion.
