11 counties under fire over Sh3 billion spent on unfinished county assembly chambers
According to Auditor General Nancy Gathungu, most contractors had already received the bulk of payments under signed contracts but abandoned the project sites without seeking extensions.
A total of 11 counties, including Marsabit, Isiolo, West Pokot and Samburu, are on the spot for failing to complete County Assembly chambers years after contractors were paid billions of shillings, Auditor General Nancy Gathungu has revealed.
Gathungu, in her report for the 2023/2024 financial year, expressed concern that the stalled projects have already consumed Sh3.8 billion and overshot delivery timelines by as much as seven years.
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The report flagged Kilifi, Marsabit, Isiolo, West Pokot, Samburu, Trans Nzoia, Uasin Gishu, Nandi, Bomet, Kisumu and Homa Bay counties. According to Gathungu, most contractors had already received the bulk of payments under signed contracts but abandoned the project sites without seeking extensions.
Assemblies, meanwhile, failed to provide auditors with progress reports on the works, and in several cases threatened to terminate contracts but never claimed liquidated damages as required by law.
The Auditor General further noted that some contractors had taken over sites more than 10 years ago but had yet to complete the works, while in one case, the chairperson of a project implementation committee resigned abruptly under unclear circumstances.
In Kisumu, the contractor awarded the Sh418,356,349 tender for construction of the County Assembly Chambers abandoned the site after being paid Sh187,293,539 as of June 30, 2024.
“The contract had been awarded on January 18, 2022, with a two-year completion period ending January 18, 2024,” reads the report.
In Bomet, Sh473,477,177 was allocated for the construction of chambers on March 19, 2020, with delivery expected in April 2023. By the audit, Sh444,499,327, 94 per cent of the contract sum, had been paid, yet the project was incomplete 16 months beyond the deadline.
Outstanding works worth Sh32.8 million included installation and commissioning of lifts, interior design, and decoration of the debating chambers. Separately, Sh26.6 million was awarded for a gatehouse and perimeter wall, but 11 months after the November 2023 completion date, the works were incomplete, even after Sh15.1 million had been paid.
“The length of the perimeter wall was not specified in the bill of quantities, limiting determination of the scope of works… By September 2024, 11 months after the completion date, the works were incomplete,” the Auditor General said.
Although Bomet Assembly had issued a notice to terminate the contract due to unsatisfactory work, the report said it had not sought the Attorney General’s legal opinion, which is mandatory before cancellation.
In Uasin Gishu, a Sh491,934,272 contract signed in November 2021 was meant to be completed in 141 weeks. However, by June 30, 2024, only 35 per cent of the work had been delivered despite 97 per cent of the timeline lapsing. By then, Sh169,923,009 had been paid to both the main contractor and subcontractor, even though the site had been abandoned.
On July 12, 2024, the project committee issued a notice citing slow progress, stating the work done was not commensurate with the time elapsed.
“Delayed completion of the project exposes the county assembly to the risk of cost escalation and raises concerns about achieving value for money,” Gathungu warned.
In Trans Nzoia, a Sh477,657,860 contract signed in January 2021 was terminated in July 2022 after Sh39.2 million, about 8 per cent of the sum had been paid. A retendered contract worth Sh464,359,150 was signed in March 2023, with a 37-week timeline. By June 2024, Gathungu said Sh333,444,292, 72 per cent of the contract, had been paid, but the project was still behind schedule.
Beyond incomplete chambers, the Auditor General flagged questionable spending across county assemblies amounting to Sh5.1 billion, warning that the irregularities mirrored systemic failures in county executives.
She cited stalled projects, irregular procurements, unsupported balances, wasteful spending and illegal expenditures, some of which continue to attract penalties from delayed completion certificates.
Seven assemblies, including Nairobi, Tharaka Nithi, Nyandarua, Migori, Homa Bay and Vihiga, were cited for holding outstanding imprests totalling Sh420.9 million, in violation of Regulation 93(5) of the Public Finance Management (County Governments) Regulations.
The report also showed that 20 assemblies recorded unsupported expenditures amounting to Sh488.7 million, including Sh118.3 million in unsupported compensation and cash transfers in Migori and Sh62.5 million in unsupported legal fees in Nairobi.
Six assemblies could not account for Sh760 million, including unverifiable insurance payments of Sh10 million in Tana River, unconfirmed borrowings of Sh20.3 million in Baringo, unsupported retention deposits of Sh11.1 million in Garissa, unsubstantiated cash transactions of Sh289.8 million in Vihiga, unsupported contingent liabilities of Sh107 million in Homa Bay, and Nairobi’s unsupported prior year adjustments of Sh329.2 million.
“The lack of supporting documentation for these transactions raises concerns about the reliability and accuracy of the financial records,” Gathungu said.
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