Treasury defends Meru fund stoppage amid rising Sh600mn legal compensation bill
NAIROBI, Kenya, May 8 - The National Treasury has defended its decision to suspend transfers to the County Government of Meru over a growing compensation Kenya breaking news | Kenya news today |..
✨ Key Highlights
The National Treasury has halted transfers to Meru County due to a substantial legal compensation bill nearing Sh600 million, owed to a French investor.
- The outstanding debt, including accrued interest, has ballooned to approximately Sh600 million.
- Treasury Cabinet Secretary John Mbadi is defending the decision to prevent further financial losses on the award.
- The dispute involves French investor Michel Dechauffour, who was awarded compensation after being evicted from a tourism facility in Meru National Park in 2018.
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Treasury Defends Meru Fund Stoppage Amid Rising Sh600mn Legal Compensation Bill - May 2026
The National Treasury has halted transfers to Meru County due to a substantial legal compensation bill nearing Sh600 million, owed to a French investor. Kenya's National Treasury is under scrutiny for allegedly diverting Sh7.3 billion from the fuel levy to illegally compensate a consortium of French firms for a terminated road construction contract. The Ministry of Roads and Transport has proposed a new framework to allocate Sh10.5 billion from the Road Maintenance Levy Fund directly to county governments. These stories reveal ongoing tensions between national government fiscal management and county-level funding.
