Lack of funds leaves Sh22 billion military projects in limbo

Lack of funds leaves Sh22 billion military projects in limbo

These projects, launched between November 2021 and June 2022 in the final months of former President Uhuru Kenyatta’s administration, have missed their expected completion dates.

Three key projects under the Kenya Defence Forces (KDF), valued at nearly Sh22 billion, have come to a halt due to a lack of funds, leaving work unfinished and contractors unpaid.

These projects, launched between November 2021 and June 2022 in the final months of former President Uhuru Kenyatta’s administration, have missed their expected completion dates.

An audit by the Auditor-General shows that while contractors were to receive Sh21.9 billion, only Sh3.16 billion has been paid.

As a result, two projects stalled at just 20 per cent completion, while another was abandoned at 60 per cent.

"Review of the Ministry’s projects progress reports and project implementation status reports indicate that three projects, initiated between November 2021 and June 2022 with cumulative contract amounts of Sh21,946,793,240 and cumulative certified works and payments of Sh3,167,246,076 as at June 30, 2024, had stalled," Auditor-General Nancy Gathungu stated in the report.

One of the stalled projects is the Sh18 billion Level 6 Forces Research and Referral Hospital in Kabete, intended to provide specialized healthcare for security personnel and the public.

The hospital, launched on August 31, 2021, was expected to be completed by January 2024 but remains far from finished.

“This level 6 hospital will cater for the needs of all men and women working in our security agencies. It is indeed a proud day for our country, for our security agencies given that this is the first project of this magnitude that has been done since the Armed Forces Memorial Hospital was done in the early 1970s,” Uhuru had said during the launch.

Another halted project is the Permanent Camp for the 8 Brigade Headquarters and Mechanised Infantry Battalion, meant to be completed by August 2023 at a cost of Sh2.8 billion.

The contract, signed in December 2021, has seen only Sh175 million paid so far, leaving construction stalled at 20 per cent. The 23 Mechanised Infantry Battalion in Marsabit is among those affected by the delays.

Also left incomplete is a 4.2-kilometre road project that began in June 2022 and was set for completion in December 2022.

The contractor, having received Sh90.19 million, halted work at 60 per cent completion, with Sh147.98 million still unpaid. The audit report did not specify the road’s location.

The Auditor-General’s physical verification, conducted between October and December 2024, confirmed that work had stopped and contractors had abandoned the sites.

"Management did not disclose measures and strategies put in place to revive and complete the stalled projects," Gathungu noted.

She further highlighted that there was no evidence contractors had renewed their performance bonds, raising concerns about accountability for the Sh3.16 billion already spent.

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