Taxpayers face the loss of billions of shillings in payments to contractors for projects that have stalled, some with no signs of resurrection.
An audit of government agencies as of June 30, 2023, reveals more than Sh4.9 billion was paid for sampled projects, with nothing to show for their value.
The amount could be higher as some mega projects have also been flagged, albeit with no information as to how much has been expended on them so far.
As with many stalled projects, Auditor General Nancy Gathungu has raised concerns that some of the ventures were attracting huge costs in penalties and interest.
Among those flagged is the proposed Kisumu Africities Convention Centre project for which a contractor was paid Sh250 million but the work has stalled since May 2022.
The Sh890 million convention complex was to be built in 38 weeks commencing on July 16, 2021, and a new deadline was set for April 8, 2024.
Due to delayed payments, the contractor in October 2023 gave the State Department for Public Works a claim for Sh1.3 billion – for loss and expenses due to suspension of works from May 24, 2022.
Gathungu has cited as irregular the payment of Sh250 million to the contractor, saying the value for money could not be confirmed.
The Labour ministry is also in a spot over the delayed works on the National Employment Promotion Centre and an office complex for the Directorate of Occupational Safety.
At least Sh244 million been paid to the contractor who was building the Sh442 million promotion centre. The auditor is sceptical of the payment.
Gathungu says physical verification in October 2023 revealed the project had stalled and the contractor had abandoned the site.
“The value for money realised from the expenditure of Sh244 million couldn’t be confirmed,” the report states.
Value for money was also not realised in the Sh95 million the Labour Department paid for the office complex.
Also in the spotlight is the Jomo Kenyatta Foundation, where classroom projects have cost Sh4 billion with nothing to show.
Some contractors had only recorded progress of nine per cent of work done, six months after the expected completion date.
The projects were to be completed by October 9, 2022, and December 11, 2022, depending on the quantity of work.
During the review, it was established that works had not started on 16 classrooms, 35 laboratories, five water projects and 388 sanitation facilities.
“Most of the works were far behind schedule with the lowest ranking contractor recording progress of nine per cent work done,” the report reads.
County headquarters in Nyandarua drained more than Sh101 million taxpayers’ cash but with scant progress – works stalled at only 19 per cent.
Public Works department top guns are in a spot for paying the contractor Sh13 million for installation of lifts in a building that had stalled at the foundation level.
“The value for money for amount paid to the contractor could not be confirmed due to delay in project execution and the related associated costs,” the auditor says.
Also cited are six fresh produce markets under the Economic Stimulus Package, which had stalled at various stages, with Sh35 million already paid.
Gathungu says the projects were at between 30 and 50 per cent completion but some had been abandoned.
Traders operated on the roadside despite the massive investments, with details showing completed markets lacked toilets.
Kithomboani modern market in Kitui town is a cause for concern to auditors, amid revelations it drained Sh208 million with nothing to show for the expenditure.
At the time of the audit, the project had stalled and the contractor was not on site. Flooring, painting, fitting bulbs, fitting doors, washrooms, and power connections were not done.
A project by the Geothermal Development Corporation has also been cited as taking inordinately long to complete.
Details show that the steam development at Bogoria Silali block is yet to begin as the Turkana government has delayed acting on requests for approval.
It emerged that GDC managers sought the approval back in May 2015 but were yet to get a response in October 2023 when the books were being reviewed.
The lack of approval has caused the delay in starting drilling activities at the Silali site, exposing taxpayers to massive losses.
Gathungu has also sounded the alarm on 10 projects by the Central Rift Valley Water Works Agency, which have taken years.
They include water supply works in Kiptogot, Ugunja, Malaba, Chepareria, Oyugis, Bomet, Kipkarren, Kabarnet and Keroka towns.
“Failure to implement projects as planned may have negatively impacted on delivery of goods and services to the residents of Kenya,” the Auditor General says.
Similar incidents have been reported at Athi Water, where projects have stalled. Some have consumed more than Sh470 million, namely the Kitui and Matuu towns connectivity.
“Athi Water Works had a performance security bond, which could not guarantee the recovery of the paid amounts. Physical verification carried out in October, 2023 revealed the project had stalled,” the auditor’s report says.
Also featured in auditor's queries are stadiums by the Sports ministry, which have been fraught with massive irregularities.
A number of national government administration headquarters and offices have also stalled, with more than Sh150 million paid out to contractors.
They include Mwea West subcounty headquarters, where value for money in Sh30 million paid so far is in doubt.
Also cited are the DCC’S office block in Tigania, Central Meru, Magunga district headquarters, Suba South, Nyanza South headquarters and Nyandarua and Machakos prisons projects.