Despite KeNHA’s management explaining that they are engaging the Ministry of Roads and Transport to resolve ownership issues, the Auditor General noted that as of 30th June 2024, no progress had been made.
“Audited public land may be vulnerable to illegal alienation or illegal occupancy. In the circumstances, fair value and completeness of assets worth KSh380,360,000 could not be confirmed,” reads part of the report.
Road camps are critical facilities that serve as operational bases for contractors and engineers during the construction, rehabilitation, and maintenance of national trunk roads.
In a damning assessment, Gathungu also disclosed that KeNHA is operating on negative working capital, raising questions about the Authority’s financial sustainability.
According to the report, KeNHA’s current assets stood at KSh38.2 billion compared to current liabilities of KSh96.5 billion, resulting in a negative working capital of KSh58.2 billion.
The Authority also recorded contingent liabilities of KSh24.5 billion in 2023/2024, an 11 per cent increase from KSh22.1 billion the previous year.
“This shows that the Authority is technically insolvent and may not meet its obligations when they fall due,” the Auditor General stated.
The revelations raise serious concerns about the performance of KeNHA’s top management, which has failed to secure ownership documents for key assets despite repeated audit queries. The Authority’s financial collapse and unresolved land ownership issues suggest systemic weaknesses in governance and oversight.
Analysts warn that the crystallisation of contingent liabilities or loss of public land could further worsen KeNHA’s financial health, severely undermining its ability to deliver on its core mandate of developing and maintaining national highways.
The Auditor General also flagged similar gaps within the Kenya Urban Roads Authority (KURA) and Kenya Rural Roads Authority (KeRRA). She warned that without clear vesting of land assets, conflicts may arise between road agencies, private developers, counties, and even other government entities.
At KURA, for instance, no land assets were captured in its KSh175.4 million property records, which only reflected buildings and improvements.
Gathungu noted that the problem stems from the Kenya Roads Act, 2007, where vesting orders gazetted at the time of establishing the three authorities did not include land assets formerly under Provincial and District Roads Offices.
Unless urgent action is taken to secure ownership, Gathungu cautioned, road agencies risk losing strategic land assets to illegal alienation. The audit now leaves lingering questions over whether KeNHA’s senior management has failed in its duty to safeguard public assets and ensure financial stability.
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