Kenya has thwarted an initiative by the East African Community (EAC) to investigate alleged misuse of the Peace Facility Fund by former Secretary General Dr. Peter Mathuki and his staff. The decision came during a tense EAC Council meeting held in Nairobi on Wednesday, where a forensic audit of the fund was proposed but ultimately blocked by Kenya.
According to sources familiar with the proceedings, the proposal for a forensic audit was met with resistance from Kenya, which was supported by the current EAC Secretary General Ms. Caroline Mwende Mueke and her team. The meeting, which aimed to reach a consensus on the audit, ended in a stalemate due to the lack of agreement among partner states.
“Kenya, supported by the Secretary General and her team—mainly beneficiaries under Mathuki—opposed the majority’s push for an audit,” said a source who wished to remain anonymous. “Without a consensus, the meeting concluded without a resolution.”
Uganda’s delegation at the meeting was led by Deputy Prime Minister in charge of EAC Affairs, Hon. Rebecca Kadaga. Despite Uganda’s support for the audit, the lack of agreement meant the initiative could not proceed.
The controversy centers around allegations of misappropriation involving USD 6.6 million from the EAC Peace Fund. Accusations against Dr. Mathuki include improper expenditure of funds, which were reportedly not disclosed to the East Africa Legislative Assembly (EALA) as required by the EAC Treaty and Financial Rules and Regulations since 2022.
An audit report by the EALA’s Audit Commission and the Internal Audit Unit highlighted irregularities in the expenditure of the Peace Facility Fund, raising concerns about financial mismanagement under Mathuki’s tenure.
Dr. Mathuki, who was replaced by Ms. Mueke earlier this year, now serves as Kenya’s Ambassador to the Russian Federation. The unresolved issues surrounding the Peace Facility Fund continue to cast a shadow over the EAC’s financial governance and accountability.
The blockage of the audit raises questions about the EAC’s ability to address internal financial discrepancies and maintain transparency, crucial for the trust and cooperation among its member states.