KURA on the spot over Sh687 million overpayment for unfinished projects

Members of Parliament have launched an investigation into allegations of misappropriated funds at the Kenya Urban Roads Authority (KURA) after a contractor was reportedly overpaid for incomplete road and bridge projects.

The Public Investments Committee on Transport and Infrastructure, chaired by Pokot South MP David Pkosing, is scrutinising the Sh687 million overpayment made to a construction company for works on roads and bridges originally budgeted at Sh892 million.

Documents presented to the committee show that the contractor, who was awarded the project in the 2018/2019 financial year, has left significant portions of the work unfinished.

The projects include the rehabilitation and upgrading of Shreeji Road, the construction of walkways and drains, and the expansion of bridges on Likoni Road and Enterprise Road.

“Somebody must explain why this contractor was overpaid. How was Sh687 million paid with so much work still undone? There’s clearly some irregularity here,” Pkosing said.

Reports from the Auditor General reveal that by February 2023, critical elements of the project, including the Likoni and Enterprise Road bridges, were incomplete.

The contractor also failed to submit design drawings for the Enterprise Road bridge, while only earthworks had been completed on Shreeji Road.

“It’s unlikely that the project will meet its revised completion deadline of April 8, 2023, which undermines the value-for-money principle,” reads the audit.

KURA Director General Silas Kinoti told lawmakers that the contractor is seeking to mutually terminate the agreement due to unforeseen challenges.

He attributed the delays to changes in the project scope by the Kenya Railways Corporation (KRC), which increased the lane width specifications from 5.1 meters to 7 meters.

The contractor also cited rising inflation since 2018 as a factor that increased material costs, making it difficult to complete the work within the original budget.

“The project stalled in 2021 due to these challenges, and the contractor now wants to terminate the agreement mutually,” Kinoti explained.

Committee members raised concerns over the justification for the overpayment and the decision to abandon the project when it was nearing completion.

“Why does the contractor want to terminate the contract when most of the work is done?” Kiambu Town MP John Machua posed.

Aldai MP Marianne Kitany stressed the need for accountability, noting the severe traffic congestion caused by the incomplete works along Likoni and Enterprise Roads.

“These delays have exacerbated traffic issues in the area. KURA, KRC, and the contractor must provide correspondence explaining these delays,” Kitany said.

The committee has directed the Auditor General to provide a detailed report to determine whether taxpayers received value for money from the contractor’s work.

“Submit the CR-12 form of this contractor to the Auditor General. All parties, including the contractor, must take responsibility. If we apportion blame, the contractor should not be exempt,” Pkosing said.

As investigations proceed, the committee has scheduled further discussions with KURA, KRC, and the contractor to resolve the ongoing impasse and ensure the completion of the stalled infrastructure projects.