The Kenya Urban Roads Authority (KURA) Director General Engineer Silas Kinoti is on the spotlight over alleged overpayment of Sh687million to a contractor.
Worse still, the controversial expenditure was made for incomplete roads and bridges construction works in favour of Cementers Construction Company for works initially budgeted at Sh892 million.
The National Assembly’s Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South Member of Parliament (MP) David Pkosing has since launched investigations into what they suspect to be a calculated scheme to embezzle taxpayers’ money.
Shockingly, while appearing before the committee, KURA Director General Silas Kinoti informed lawmakers that the contractor is pushing for a mutual termination of the agreement, citing unforeseen challenges.
The committee has since commenced investigations into the suspected misappropriation of funds through payments advanced to a contractor for incomplete works.
Documents presented before 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.” Pkosing posed.
Auditor General Nancy Gathungu’s 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 report says in part.
While appearing before the committee, KURA DG 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.
Committee members questioned the justification for the contractor’s overpayment and the reasons for abandoning the project when it was nearing completion.
“Why does the contractor want to terminate the contract when most of the work is done?” Kiambu Town MP John Machua posed.
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.
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.
