Auditor General Flags Ksh. 37.92B in Stalled Projects

By Correspondent

The Auditor General has raised the alarm over stalled government projects valued at Ksh. 37.92 billion across 24 ministries and state departments, revealing concerning levels of fiscal waste, poor project management, and disregard for accountability in public spending.

In her latest report for the 2023/2024 financial year, Auditor General Nancy Gathungu noted that the government continues to channel substantial funds into incomplete or non-functional projects, many of which have long exceeded their scheduled completion dates. As of now, Ksh. 7.8 billion has been paid for these projects, some of which are now attracting penalties due to delayed certification of works, while others have seen cost escalations following contract revisions.

“There is no value in public funds spent on stalled and delayed projects, as no services are being provided. The amounts spent are sunk costs, with no development realised,” the report states in part.

Leading the list is the Ministry of Defence, which is responsible for stalled infrastructure modernisation projects valued at Ksh. 21.9 billion. Of this, Ksh. 3.2 billion had been disbursed by the end of June 2023.

The Parliamentary Joint Services follow with projects worth Ksh. 4.3 billion, including the long-delayed Centre for Parliamentary Studies and Training (CPST), which has so far consumed Ksh. 934.5 million.

The State Department for Public Works is grappling with stalled county headquarters in Tharaka Nithi, Nyandarua, Isiolo, and Tana River, collectively worth Ksh. 2 billion.

The State Department for Medical Services has ongoing challenges with stalled projects valued at Ksh. 3 billion. These include the incomplete Pediatric Emergency and Burns Management Centre, the Kisii Cancer Centre, and several Equalisation Fund initiatives. So far, Ksh. 1.5 billion has been paid out.

In the higher education sector, the report spotlights a stalled Science and Technology Park at Dedan Kimathi University worth Ksh. 1 billion, with Ksh. 223.9 million already spent. Additionally, the State Department for Technical and Vocational Education and Training has projects worth Ksh. 154.5 million that have absorbed Ksh. 123.2 million, including technical institutes in Chepareria, Ngeria, and Mount Elgon.

Reacting to the revelations, the Public Investments Committee on Governance and Education has imposed a moratorium on new infrastructure projects in public universities. Committee Chairperson, and Bumula MP, Wamboka Wanami said it was unacceptable for institutions to embark on fresh developments while previous ones remain incomplete. Four top universities, the University of Nairobi, Kenyatta University, Moi University, and Egerton University, were cited, with stalled works totalling Ksh. 6.2 billion.

The State Department for Internal Security and National Administration has eight stalled projects worth Ksh. 1.15 billion, having spent Ksh. 833.6 million. The State Department for Petroleum has also faltered on the Mwananchi Gas Project, valued at Ksh. 1.28 billion.

Meanwhile, the Transport Department has spent Ksh. 120.2 million of a Ksh. 130.7 million allocation on a stalled data centre project. The Irrigation Department’s incomplete Anyiko–Ujwanga–Kathieno project in Siaya and other works amount to Ksh. 485.9 million, with only Ksh. 37.4 million expended so far.

In the Labour and Skills Development docket, Ksh. 339.2 million has been spent on projects valued at Ksh. 556.7 million, including the National Employment Promotion Centre and the Occupational Safety and Health Institute.

Other affected entities include:  

  • Public Service Commission: Ksh. 163 million in stalled projects  
  • Teachers Service Commission: Ksh. 122.6 million for Machakos and Kilifi offices  
  • Commission on Revenue Allocation: Ksh. 117 million for unfinished office partitioning  
  • State Department for Devolution: Ksh. 890.8 million, including the Africities Convention Centre in Kisumu  
  • Correctional Services: Ksh. 147 million, including a collapsed perimeter wall at Shimo La Tewa Prison  
  • Livestock Development: Ksh. 21.8 million for a training centre in Narok  
  • Water and Sanitation: Ksh. 49.7 million in borehole projects

The Auditor General’s report highlights a disturbing pattern: public funds are being committed to projects that either stall completely or suffer severe delays, often without accountability. These delays not only represent missed development opportunities but also distort the overall budget performance of the national development vote.

As scrutiny intensifies and Parliament acts to halt further wastage, the report serves as a stark reminder of the urgent need for systemic reform in project planning, procurement, and execution across government entities.