Affordable housing in limbo amid Ministry, consultants counter accusations over non-payment
One of the president William Ruto’s pet initiatives whose success or failure would mark his legacy projects, the affordable housing project, could be drifting to jeopardy over non-payments of project consultants, The Informer Media Group can authoritatively reveal.
Through a petition presented to the National Assembly dated November 27, 2024 and received at the National Assembly Main Records Unit on November 29, 2024, the petition indicates the consultants are owed outstanding dues totaling to Sh1billion for the last ten months by the State Department of Housing and Urban Development under the Ministry of Lands, Public Works, Housing and Urban Development headed by Cabinet Secretary Alice Wahome.
However, when contacted by The Informer Media Group for comment, Principal Secretary, State Department of Housing and Urban Development Charles Hinga, through Housing Secretary Said Athman, Hinga denied claims of outstanding debts owed to the consultants as claimed.
Instead, Athman accused the consultants for not submitting their invoices on time thus occasioning the payment delays as from July 2024.
Further, Athman asserted that some consultants have not submitted the proper documentation and “valid submissions to start processing from the consultants.”
“There has not been delays for 10 months. Consultants were engaged in March 2024 and assigned projects. The first of these projects were contracted in July 2024 and the consultants who did the work were paid the same month in July 2024 for designing (1.5 per cent), site masterplan and preparation of tender documentation (10 per cent of the fees).”
“From July 2024, the supervision consultants were due to submit invoices for inception of works ( 10 per cent of supervision fees) in August 2024 and 1st Quarter fees in October 2024. The invoices are yet to be received. This is largely due to the fact, as an initial payment to most them, getting proper documentation has taken time. The consultants also have organized themselves to do a single joint submission of all invoices at the same time. The State Department has not received any valid submissions to start processing from the consultants from July 2024.” Athman added.
In the petition presented to the National Assembly and signed by Karori Maina, the consultants drawn from the Institution of Engineers of Kenya (IEK), Institute of Quantity Surveyors of Kenya (IQSK) and Architectural Association of Kenya (AAK) appealed to Parliament to ensure Sh1billion outstanding dues owed to consultants is settled.
The petition also sought intervention of the National Assembly to ensure the State Department finalises consultants’ contracts which are still pending.
“The continued lack of formal engagement violates the consultants’ rights under Article 41 of the constitution, which guarantees fair labour practices.” The petition read in part.
Our investigations established that no contracts have been signed between the consultants and the Housing Department so far despite the ongoing construction works.
A letter of the agreement signed by PS Hinga dated September 18, 2024 seen by The Informer Media Group, Hinga told the consultants that they would be engaged in Framework Agreements arrangement participating “in call-offs from time to time”.
“Your tender dated November 22, 2023 for Procurement of Consultancy Services for Project Management and Construction Management for Affordable Housing, Tender No. MLPWHUD/SDHUD/AHP/192/2023-2024 is hereby accepted. You are hereby notified that this shall be a framework agreement where you will be required to participate in calls-offs orders from time to time.” The letter signed by PS Hinga reads in part.
In his response to our queries, Athman said that all the consultants signed Agreements in March 2024 save for the Conditions of the Agreement which are currently under negotiation.
“For avoidance of doubt, the PS, in August 2024, at a meeting with consultants, accepted the request from consultants to invoice for the inception, which was not in the agreement. Again in September 2024, at a retreat with consultants he decried their not invoicing and accepted them to invoice both for the inception and 1st Quarter. The State Department has the necessary resources to pay the consultants. The consultants engaged have made a major contribution towards increasing our capacity to scale up, ensuring quality of AHP designs and supervision and to support the program in new AHP products. We continue to work closely with the professional associations and the universities.” Athman added.
He, however denied claims of infighting among top ministry officials which has allegedly threatened putting the housing programme in disarray.
“There is no wrangling amongst senior officials who work diligently and tirelessly as a team. AHP is a new dynamic programme and expectedly, will trigger difference of opinions, particularly amongst senior persons who by their own right are professionals in their field. This is very healthy to ensure that different perspectives are fronted, discussed and agreed upon. These perspectives are not personal but professional. For avoidance of doubt, we do not have any wrangling amongst senior officials.” Athman added.
In his petition, Karori call upon the National Assembly to investigate leadership wrangles “among ministry officials and take appropriate action to prevent further disruption of the programme.” Karori said.
