Nairobi — The Kenya Urban Roads Authority (KURA) is facing allegations of misappropriation of funds after a contractor was reportedly overpaid for road and bridge projects that remain incomplete.
The National Assembly's Public Investments Committee on Transport and Infrastructure, chaired by Pokot South MP David Pkosing, is investigating the alleged overpayment of Sh687 million to Cementers Construction Company for works on roads and bridges initially budgeted at Sh892 million.
Alleged Overpayment and Project Delays
Documents presented to the committee indicate that half of the contractual work, awarded in the 2018/2019 financial year, remains unfinished. The contractor was tasked with rehabilitating and upgrading the Shreeji Road, constructing walkways and drains, and expanding bridges over the rail line on Likoni Road and the river on Enterprise Road.
"Somebody must explain why this contractor was overpaid. How was Sh687 million paid with so much work still undone? There's clearly some irregularity here," said Pkosing.
Auditor General reports reveal that as of February 2023, critical components of the project--including the Likoni and Enterprise Road bridges--remained incomplete. The contractor had also failed to submit design drawings for the Enterprise Road bridge, while Shreeji Road had only earthworks completed.
"It's unlikely that the project will meet its revised completion deadline of April 8, 2023, which undermines the value-for-money principle," the audit noted.
Contractor Seeks Termination
KURA Director General Silas Kinoti informed lawmakers that the contractor is pushing for a mutual termination of the agreement, citing unforeseen challenges.
Kinoti attributed delays to a change in scope by the Kenya Railways Corporation (KRC), which modified lane width specifications from 5.1 meters to 7 meters. Additionally, the contractor argued that inflation since 2018 had increased the cost of materials, making it impossible to complete the project within the agreed budget.
"The project stalled in 2021 due to these challenges, and the contractor now wants to terminate the agreement mutually," Kinoti said.
Lawmakers Demand Accountability
Committee members questioned the justification for the contractor's overpayment and the reasons for abandoning the project when it was nearing completion.
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"Why does the contractor want to terminate the contract when most of the work is done?" asked Kiambu Town MP John Machua.
Aldai MP Marianne Kitany emphasized the urgent need for accountability, highlighting the severe traffic congestion caused by the incomplete projects along Likoni and Enterprise Roads.
"These delays have exacerbated traffic issues in the area. KURA, KRC, and the contractor must provide correspondence explaining these delays," Kitany said.
Auditor General to Investigate
The committee directed the Auditor General to provide a comprehensive report on whether taxpayers received value for money from the contractor's work.
"Submit the CR-12 form of this contractor to the Auditor General. All parties, including the contractor, must take responsibility. If we apportion blame, the contractor should not be exempt," Pkosing asserted.
As investigations continue, the committee has scheduled further discussions with KURA, KRC, and the contractor to resolve the impasse and ensure the completion of the stalled infrastructure projects.
