Sh31.2 billion worth of government projects stalled across multiple sectors - Auditor General

Government projects worth Sh31.2 billion have stalled across multiple sectors, including health, security, sports, public works and lands.

According to the Auditor General’s report for the 2024/2025 financial year, the government has already paid contractors about Sh7.4 billion despite several projects remaining incomplete or delayed.

Auditor General Nancy Gathungu warned that the delays have exposed the government to financial risks, including possible penalties linked to delayed payments for completion certificates on milestones already achieved.

The report also revealed that some projects have had their contracts revised, resulting in costs rising beyond the initial contract amounts.

Gathungu further raised concerns that public funds have been paid to projects that appear to have stalled completely, affecting value for money.

“There is no value for money on public funds spent on the stalled and delayed projects, as no services are being provided by these projects. Further, the amount spent is a sunk cost as no development has been achieved from the stalled or incomplete projects. The costs incurred further distort expenditures incurred on the development vote,” reads the audit.

The Ministry of Defence recorded the highest value of stalled projects at Sh18.8 billion, with contractors having received Sh2.9 billion. Among the affected projects is the construction of a Level Six Referral Hospital, which is only 20 per cent complete despite the contractor no longer being on site.

The Parliamentary Joint Services has stalled projects worth Sh4.2 billion, with Sh1.2 billion already paid. The delayed project involves the completion of the Centre for Parliamentary Studies and Training.

The State Department for Sports has stalled projects valued at Sh1.5 billion, with the full amount already paid. The projects involve delays in handing over Kirigiti and Wanguru stadiums, which have been completed and fully paid for but are yet to be transferred to the relevant authorities.

The Judiciary has 11 stalled projects with expired contracts valued at Sh1.7 billion.

The National Police Service has stalled projects worth Sh1.3 billion, having paid out Sh429.9 million. The audit identified delays in handing over a police station due to incomplete works, including a septic tank, gutters and an electricity connection.

The report also highlighted the Non-Operational National Police Hospital Mbagathi project, whose contract sum is Sh1.2 billion, with Sh400 million already paid.

The State Department for Blue Economy and Fisheries has stalled projects worth Sh1.2 billion, with Sh702.8 million already paid. The project involves the implementation of Hazard Analysis Critical Control Points in Liwaton.

At the National Treasury, the Electronic Government Procurement system project, valued at Sh344.8 million, has stalled despite Sh176.1 million being paid.

The State Department for Labour and Skills Development has stalled projects worth Sh452.7 million, with Sh251.3 million already paid. They include the construction of Meru Labour offices and the National Employment Promotion Centre.

The Meru Labour offices project has a contract sum of Sh9.9 million, with Sh7.4 million paid, while the National Employment Promotion Centre project is valued at Sh442.7 million, with Sh244 million already released.

The Executive Office of the President has a stalled project worth Sh28.4 million involving the supply, delivery, installation, training and commissioning of an Enterprise Resource Planning system for the Government Press Fund.

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“80 per cent complete, no payments done resulting in stalling and risk of penalties as per the terms of the contract,” Gathungu said.

The Public Service Commission project involving the acquisition of an Integrated Management Information System has also not been commissioned or operationalised despite costing Sh97 million. The government has already paid Sh67.8 million for the system meant to automate the commission’s operations and services.

Under the State Department for Public Health and Professional Standards, projects worth Sh58.9 million involving the construction of microwave medical waste housing facilities in Vihiga and Bomet counties have stalled despite the full amounts being paid.

The State Department for Public Works has nine stalled projects valued at Sh517.9 million. They include the Ndau sea wall, Kiwayu jetty, Riagathuri Thangathi footbridge, Esukuta footbridge, Kimase-Kisabei footbridge, Kaiti footbridge, Mumoni footbridge, Muanda Nasara footbridge and Binyenya Kikai footbridge.

The audit showed that the cost of the Ndau Seawall project in Lamu has increased to Sh322.9 million due to accrued interest. The project was initially valued at Sh148 million, with Sh14 million already paid.

The State Department for Lands and Physical Planning has stalled projects worth Sh227.3 million. They include delays in completing regional land registries in Maralal, Naivasha and Nanyuki, whose combined contract sum is Sh154.2 million, and the Ngong Registry project valued at Sh73.2 million.

The State Department for Foreign Affairs also has a stalled project involving the development of a chancery in Bujumbura, although its value was not disclosed. The project is being developed on land granted by the Government of Burundi.

The State Department for Agriculture has two stalled projects worth Sh16.7 million.

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