Auditor-General: Sh69.5 million spent, but Nairobi's Mutuini market project stalled

The Mutuini market was the first of 20 markets the county government planned to build by 2027 to address the shortage of trading spaces in Nairobi.
An audit report has raised concerns over irregularities in the procurement and stalled construction of the Mutuini market in Dagoretti South, a flagship project under Nairobi Governor Johnson Sakaja's administration.
The office of the Auditor-General in its report for the Financial Year 2023-2024 highlights that the Nairobi County Executive awarded a Sh242 million contract for the project on February 7, 2024, with a completion deadline set for August 7, 2024.
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However, by October 2024, when the audit was conducted, the contract period had lapsed and the project had stalled.
A review of procurement documents showed no approval for an extension, and the performance bond had expired on July 2, 2024, without renewal.
No project status report
The audit report also revealed that a payment of Sh69.5 million had already been made, yet there was no project status report to confirm the progress.
The Mutuini market was the first of 20 markets the county government planned to build by 2027 to address the shortage of trading spaces in Nairobi.
Currently, the city has 42 markets, but they are not enough for traders, forcing many to operate on roadsides and streets within the central business district.
During the ground-breaking ceremony, Governor Sakaja had said that the market would ease congestion and improve trading conditions.
Modernise markets
"The market will serve the people of Mutuini and the residents around Dagoretti, and it will put an end to the residents' grievances, which have been going on for the past four years under the previous regime," he said.
City Hall had outlined plans to modernise markets, ensuring they had enough space to eliminate shanties and reduce the risk of fires caused by illegal electricity connections.
The Mutuini market was fully funded by the county government, while some other markets would be built in collaboration with the national government.
Once completed, the market was expected to accommodate 500 traders and serve as both a wholesale and retail hub.
However, with the project now stalled and audit findings questioning the value of the Sh69.5 million already spent, concerns have emerged over whether the county will complete the market as planned.
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