Parliament orders Ministry of Roads to advertise projects only when funds are available
During a session on Tuesday, the National Assembly Committee on Implementation criticised the ministry for awarding contracts without securing adequate financing.
The State Department for Roads has been instructed to advertise road projects only after confirming funds are available from the Exchequer, in a bid to stop the accumulation of pending bills.
During a session on Tuesday, the National Assembly Committee on Implementation criticised the ministry for awarding contracts without securing adequate financing. The legislators warned that unpaid bills and interest are draining resources that should be directed towards new road construction.
In a meeting with Roads Principal Secretary Joseph Mbugua in Eldoret, the Committee also underscored the need for equitable distribution of road projects across all constituencies.
Mbugua informed the committee that the Ministry had secured a Sh175 billion bridging facility by securitising the increased Fuel Levy, a move designed to clear all pending contractor bills and accrued interest by December 31, 2024.
“You may remember that the ministry was allowed by Parliament to raise the Fuel Levy by Sh7 in the last budget. This we securitised to raise Sh175 billion to settle pending bills. Now we are confident of settling all the bills and interest accrued up to 31st December 2024,” the PS said.
The Committee further reviewed the implementation of recommendations from the Public Investment Committee’s report on the Kenya Rural Roads Authority’s financial statements. Concerns were raised over project management and contractor vetting.
Underperforming contractors
Igembe North MP Julius Taitumu and Embakasi West MP Mark Mwenje questioned why underperforming contractors, who caused huge losses, had not been held financially accountable.
“Why shouldn’t people be surcharged if they award contracts to people with no capacity to carry out the works for which they are being awarded?” Taitumu asked.
West Pokot Woman Rep Rael Kasiwai cited recurring issues highlighted by the Auditor General, including projects starting without approved environmental impact assessments, mounting pending bills, breaches of procurement laws, and delayed payments.
“Your report is replete with observations related to projects having commenced without an approved environmental impact assessment, pending bills, flaunting of procurement laws and delayed disbursements,” she said.
“How do you plan to address these issues to ensure that the authority rises above this to deliver on its mandate?”
Payment delays
Trans Nzoia Woman Rep Lilian Siyoi also raised concerns about payment delays, noting their impact on project delivery.
“I sympathise with contractors whose compensation has been delayed. Some often go to the banks to seek loan facilities to fund projects allocated to them, only to later be told there is no exchequer. Contractors cannot be expected to complete projects on time if their payments are delayed. We need to come up with a different law which provides that we only procure contractors for monies that we have,” she said.
PS Mbugua admitted that advertising projects without confirmed funding had worsened the problem.
“Indeed, Hon. Members, the issues you are raising here are the same issues that we are trying to address as a State Department. We will explore commencement of road projects only when we have received monies into our accounts,” he said.
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