Nairobi, March 27 -- The National Treasury is on the spot for irregularly diverting Sh2 billion from the Railways Development Levy Fund for the purchase of locomotives to run the meter gauge railway (MGR).

The Auditor General says in her latest report that the Treasury, then headed by Ukur Yatani, released Sh2.09 billion out of Sh26.84 billion that the fund had accumulated in the year to June 2022.

The Sh2 billion that went towards the purchase of MGR locomotives was by law meant to provide funds for the construction and operation of the standard gauge railway (SGR).

"The payments were irregular since Section 8 (3) of the Miscellaneous Fees and Levies Act, 2010 provides that the purpose of the Railway Development Levy shall be to provi...