The Auditor-General has raised serious concerns regarding multiple ongoing infrastructure projects, highlighting financial mismanagement, delayed payments, and the risk of escalating costs.
One of the key projects on the spot is the Kenol-Sagana-Marua Highway Improvement Project, which has shown unexplained and unsupported over-expenditure of Sh525,256,167.
The audit reveals that the project’s financial management has been problematic, with discrepancies in budgeting and expenditure, raising questions about accountability and transparency in the handling of public funds.
The audit also pointed out the growing concern of pending accounts payable, totaling Sh 3.2 billion.
This amount includes land acquisitions, road construction, and consultancy services, which account for Sh 2.8 billion, Sh 342,914,144, and Sh11,594,102 respectively.
The failure to clear these outstanding bills within the fiscal year distorts the following year’s budget, as these pending payments are considered a first charge on the subsequent budget.
This practice severely undermines fiscal discipline and creates a cycle of financial mismanagement, leaving taxpayers at risk of bearing the consequences.
Another project under review is the Modogashe Project, which has faced budget discrepancies.
Despite an approved budget of Sh 5,950,829,860, only Sh 3.8 billion was spent, resulting in an under-expenditure of Sh2,132,195,257, or 36% of the budget.
This underutilization of funds raises concerns about the project’s planning and execution, leading to questions about the allocation and management of public resources.
Similarly, the dualling of the Kenol-Sagana (A2) Road, a critical infrastructure project valued at Sh 8.5 billion, has experienced delays and is currently only 53% complete, despite being contracted for completion within 36 months.
This project, alongside the Sagana-Marua (A2) Road Section project, which is valued at Sh 6.2 billion, has also been delayed due to land compensation issues.
The Sagana-Marua project has accumulated a pending bill of Sh 846 million, with the possibility of additional costs arising from interest and penalties due to the failure to settle outstanding payments.
The auditor warned that such delays could result in public financial losses.
The Kibwezi-Mutomo-Kitui-Migwani Road project, valued at Sh 18.4 billion, has stalled due to the non-payment of Sh 167,855,694, which includes Sh 32,107,000 in interest accrued due to delayed payments.
Additionally, an amount of Sh 1.6 billion for land acquisition remains unpaid, further delaying the project’s completion.
The dualling of Magongo Road, another project by KeNHA, has encountered delays and is reflected in pending payments amounting to Sh 202,665,451.
This includes retention amounts of Sh 24,431,394, for which management has failed to provide sufficient supporting documentation.
The ongoing issues with these infrastructure projects highlight the systemic financial mismanagement and lack of accountability in the government’s handling of public funds.
The authorities, including KeNHA, have committed to liaising with the National Treasury to secure adequate budgetary allocations to ensure the timely settlement of pending bills.
However, the audit report suggests that there are still unresolved matters from the previous year, underlining the need for more effective oversight and better management of public resources to avoid further delays and potential cost overruns.
The persistent financial discrepancies in these projects raise concerns about the effectiveness of public resource management and the risks to the nation’s development agenda.
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