Auditor-General flags Sh38bn in stalled projects in 24 state departments

A total of 24 state departments, including Defence, Public Works, and Education, have stalled development projects amounting to Sh37.92 billion, exposing systemic inefficiencies and raising accountability questions over government expenditure.

The Auditor-General’s report for the 2023/24 financial year has raised the alarm over the continued spending on projects that have either stalled or remained incomplete long past their original completion dates.

According to Auditor-General Nancy Gathungu, the government has already paid Sh7.8 billion for these projects, some of which are now accruing penalties due to delayed payment of certificates for completed milestones. Others have been revised upwards, surpassing their initial contract sums, leading to cost escalations.

“There is no value for money on public funds spent on the stalled and delayed projects, as no services are being provided by these projects. Further, the amount spent is a sunk cost, as no development has been achieved from the stalled or incomplete projects. The costs incurred further distort expenditures incurred on development votes,” reads the report.

Leading the list of stalled undertakings is the Parliamentary Joint Services, which is overseeing projects valued at Sh4.3 billion, including the completion of the Centre for Parliamentary Studies and Training (CPST). By June 30 last year, these projects had already consumed Sh934.5 million.

Defence projects

The Ministry of Defence follows with infrastructure modernisation and development projects worth Sh21.9 billion, for which Sh3.2 billion had already been paid as of June 30, 2023.

The State Department for Internal Security and National Administration has eight stalled development projects worth Sh1.15 billion, having already spent Sh833.65 million.

The Department for Public Works has projects valued at Sh2 billion that have stalled due to the delayed completion of county headquarters in Tharaka Nithi, Nyandarua, Isiolo and Tana River counties.

In the State Department for Higher Education and Research, a stalled science and technology parks project at Dedan Kimathi University is valued at Sh1 billion, with Sh223.92 million already spent. The State Department for Technical Vocational Education and Training (TVET) has stalled projects worth Sh154.52 million, with Sh123.23 million already used.

Out of the Sh154.52 million, Sh48.47 million relates to the construction of Chepareria Technical Training Institute, which has consumed Sh26.7 million. Another Sh46.99 million was allocated to the proposed Ngeria Technical and Vocational College, which has spent Sh26.7 million, while Sh59 million was earmarked for Mt Elgon Technical and Vocational College, which has already used up Sh57 million.

Freeze on new projects

The audit findings were released just days after Members of Parliament imposed a freeze on the initiation of new projects in institutions of higher learning.

This followed revelations that four top universities, Egerton University, Moi University, the University of Nairobi, and Kenyatta University, have stalled projects worth Sh6.2 billion.

“We are putting an embargo on all new projects until all the old ones have been completed,” Bumula MP Wamboka Wanami, who chairs the Public Investments Committee on Governance and Education, said.

Other Topics To Read

• National
• Auditor General Nancy Gathungu
• stalled projects
• state departments
• government stalled projects
• Auditor-General flags Sh38bn in stalled projects in 24 state departments
• Headlines

“It is unacceptable that institutions of higher learning were funding new projects, yet the old projects had not been completed.”

In the health sector, the State Department for Medical Services has stalled projects worth Sh3 billion, out of which Sh1.5 billion has already been paid. Notable projects include the Sh2.95 billion Paediatric Emergency Centre and Burns Management Centre (Sh1 billion spent), the Kisii Cancer Centre (Sh283 million), and 16 Equalisation Fund projects of undetermined value. Another Sh61.8 million relates to the installation of medical gases, with Sh32.39 million already paid.

Stalled gas project

The Mwananchi Gas Project under the State Department for Petroleum has stalled, with a total project value of Sh1.28 billion.

The National Police Service has also reported stalled projects worth Sh105.36 million related to construction works at Laisamis Police Station.

The Transport Department has stalled projects valued at Sh130.7 million, including the construction of the Transport Data Centre, which has already consumed Sh120.25 million.

The Irrigation Department has reported stalled projects worth Sh485.88 million, with Sh37.39 million already spent. Of this, Sh478.5 million relates to the Anyiko-Ujwanga-Kathieno Irrigation Project in Siaya County (Sh37.39 million spent), while Sh7.37 million was allocated to drilling and equipping a borehole at Ganda Primary School in Kwale County.

The Labour and Skills Development unit has stalled projects worth Sh556.73 million, with Sh339.23 million already spent. Among them is the construction of the National Employment Promotion Centre (Sh442.7 million, Sh244 million spent) and the completion of the Occupational Safety and Health (OSH) Institute Phase I (Sh114 million, Sh95.29 million spent).

The Commission on Revenue Allocation (CRA) has stalled office partitioning works at Prism Towers worth Sh117 million, having already used Sh97.7 million. The State Department for Water and Sanitation has Sh49.7 million in stalled borehole completion projects.

The Teachers Service Commission (TSC) has stalled office construction projects in Machakos and Kilifi counties worth Sh122.56 million.

The Public Service Commission (PSC) has stalled projects valued at Sh163 million, with Sh94.09 million already spent. These include the Integrated Management Information System (IMIS) project awarded in 2015/2016 (Sh97 million, Sh67.88 million spent) and additional office construction projects awarded in 2019/2020 (Sh66 million, Sh26.2 million spent).

The Livestock Development unit is also affected, with stalled projects worth Sh21.8 million for the construction of a training block at Narok Regional Pastoral Training Centre, which has so far consumed Sh7.55 million.

The State Department for Devolution has reported Sh890.8 million in stalled projects linked to the proposed Africities Convention Centre Project in Kisumu, with Sh250 million already spent.

Prison projects

Meanwhile, the State Department for Correctional Services has stalled projects worth Sh147 million, with Sh60.17 million already used. These include the construction of the collapsed perimeter wall at Shimo La Tewa Maximum Prison (Sh24.8 million, Sh22.36 million spent), and construction projects across various correctional facilities (Sh123.1 million, Sh37.8 million spent).

The findings have raised concerns over accountability, planning and the prudent use of public resources suggesting that billions in taxpayer money have gone into projects that have yielded no tangible results.