Counties sink billions into stalled and abandoned projects, audit report reveals
249 projects worth Sh20 billion started by 33 counties have stalled and been abandoned, while 40 completed projects in 10 counties, valued at Sh366.4 million, remain unutilised.
Counties across Kenya have sunk billions of shillings into stalled, abandoned and unused projects, exposing taxpayers to massive financial losses, a new report for the 2023/2024 financial year has revealed.
According to the report, at least 688 projects initiated by various counties at a total cost of Sh23.3 billion have stalled. In addition, 249 projects worth Sh20 billion started by 33 counties have stalled and been abandoned, while 40 completed projects in 10 counties, valued at Sh366.4 million, remain unutilised.
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The findings paint a picture of inefficiencies, financial mismanagement, wastage of public resources and a lack of value for money. Auditor General Nancy Gathungu warns that county governments have continued to incur huge expenditures on projects that either remain incomplete or have long passed their completion deadlines.
Some projects, she notes, are attracting penalties due to delays in paying completion certificates for milestones already achieved, while others have been revised to cost amounts significantly higher than their original contract sums, leading to cost escalations.
“Payments have been made to projects that appear to have completely stalled, casting doubt on the value for money for such expenditure,” reads the report.
“Financial, lawfulness and governance issues in project implementation pointed to weak oversight, lack of transparency, and possible financial mismanagement. This is contrary to Section 119 of the Public Finance Management Act, 2012, which requires public officers to ensure transparency, accountability and prudent use of public funds.”
The report also flags severe delays in project delivery. Nakuru County Executive was cited for having 582 delayed projects valued at Sh7.6 billion, while Bungoma County Executive had five delayed projects worth Sh3 billion.
Trans Nzoia County has delayed projects valued at Sh2.2 billion, though the report did not specify their number. Narok County has one delayed project worth Sh1.5 billion, Nandi County has 11 projects worth Sh1.2 billion, Kirinyaga County has five projects valued at Sh1.2 billion, and Uasin Gishu County has two delayed projects worth Sh930.2 million.
“Delays in project implementation and completion may be an indication of ineffectiveness in the management of public resources, causing delays in service provision to the public,” reads the report.
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