Taxpayers' billions lost as county projects remain stalled - audit report

Kenyans are facing the harsh reality of abandoned projects worth billions of shillings across counties, raising concerns about wasteful spending and mismanagement of public funds.

A new report by the Auditor General exposes the grim picture of unfinished developments, some dating back a decade, despite substantial payments already made.

The audit for the financial year ending June 30, 2024, presented in the Senate, reveals that nearly all counties have projects that have either stalled or been poorly executed.

Some first-term governors appear to have abandoned initiatives started by their predecessors, further worsening the situation.

Kakamega County has 10 stalled projects worth Sh7.24 billion, dating back to the 2014-15 financial year.

So far, Sh3.14 billion has been spent, but work remains incomplete.

"However, these projects had stalled at various stages of implementation, and no reasons were given despite their contract period having elapsed," the report notes. Another Sh527.29 million was spent on new projects that also stalled, with no explanation provided.

Meru County has two incomplete projects valued at Sh36.88 million, while Samburu has projects worth Sh206.53 million that have stalled.

Among them is the governor’s residence, for which Sh60.44 million has already been paid, despite the project being far from completion.

Similarly, an inpatient block at Samburu County Referral Hospital, costing Sh116.95 million, remains unfinished despite Sh107.79 million already disbursed.

In Machakos County, 54 projects valued at Sh1.13 billion remain incomplete, even after Sh314.26 million had been paid.

"In the circumstances, value for money on expenditure incurred in the amount of Sh314.26 million could not be confirmed," the report states.

Abandoned projects

Tharaka Nithi has seen contractors abandon projects worth Sh525.29 million after receiving payments.

Among them are roads like Kambandi-Cheera-Ruguti and Karandini-Kathioroni, where physical inspections in September 2024 revealed that no work was ongoing.

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"No correspondence was provided on measures being taken to complete the projects," Auditor General Nancy Gathungu states in the report.

Counties are grappling with delayed funds from the Treasury, underperforming revenue collection, corruption, huge pending bills, and high wage expenditures, all of which are shrinking development budgets.

Kitui County has projects worth Sh404.58 million that remain incomplete, some dating back to 2017. These include a storeyed maternity ward at Kitui Referral Hospital (Sh242.78 million), an X-ray building at Kauwi Hospital (Sh2.20 million), and an oxygen plant (Sh14.5 million).

The audit also exposes cases of poor workmanship in completed projects. In one instance, a livestock office block had cracked floors and peeling paint within two months of completion. At Mutomo Reptile Park, a snake pit was so poorly constructed that gaps were left in the walls, posing a risk of reptiles escaping.

Nyandarua County's headquarters, set to cost Sh617.64 million, remains unfinished, while 42 projects valued at Sh64.07 million have yet to begin despite contracts being awarded. In West Pokot, key projects such as the Ladies’ Hospital at Chesta Teachers Training College (Sh37.40 million) and an administration office block in Kapenguria (Sh52.45 million) have stalled.

The county is also yet to complete its governor’s residence, which started in 2019 at a cost of Sh198.47 million.

In Embu, construction of the governor’s residence, awarded at Sh49.70 million in March 2021, has stalled.

Baringo County has projects worth Sh11.46 million that have yet to be completed since 2017-18. Kabarnet Stadium started in the 2013-14 financial year, also remains abandoned despite the initial contract of Sh46.88 million.

In Uasin Gishu, the auditor flagged delays in constructing 64 stadiums at a cost of Sh1.76 billion. Initially launched in January 2021, the project was meant to be completed in 60 weeks, yet it remains far from finished, with Sh65.76 million already spent.

Bomet County has projects worth Sh314.9 million that are either delayed or abandoned. These include the Dr. Laboso Memorial Mother and Child Wellness Centre (Sh296.93 million), a theatre at Sigor Sub-County Hospital (Sh3.99 million), and a fresh produce packhouse (Sh13.98 million).

Nakuru County has 26 stalled projects valued at Sh56.18 million, while an additional 17 projects worth Sh66.29 million remain incomplete at various stages. During the 2023-24 financial year, Sh95.52 million meant for 21 projects was redirected to other uses.

The report raises concerns over the accountability of county administrations and the impact of these stalled projects on service delivery.