Queries over stalled Sh247million Mutuini market construction in Nairobi

The Auditor General, Nancy Gathungu has questioned the expenditure into the construction of Sh247million Mutuini Market in Nairobi’s Dagoretti South whose projected construction period has already lapsed.

Further, in her 2023-2024 financial year audit report, Gathungu queried unaccounted Sh69.5 million paid to the contractor by the Nairobi City County government since no status report was available to confirm progress six months after the completion deadline had lapsed.

The Auditor General also cited procurement irregularities in the tendering and award process for the construction of the now-stalled modern market.

The now seemingly white elephant project was among the flagship undertakings under the Nairobi governor Johnson Sakaja.

The report shows the contract was awarded on February 7, 2024, with a completion deadline set for August 7 last year, 2024, as the construction was to take twenty-four weeks.

Also, there is no approval for an extension, and the performance bond expired on July 2, 2024, and has not been renewed since.

However, the project has since, and six months after the lapse of the scheduled completion deadline, it is still pending.

In her report, the AOG revealed that a payment of Sh69.5 million had already been made, yet there was no project status report to confirm the progress.

“A payment of 69,568,960 was made for the 1st certificate. In the circumstances, the value for money for the expenditure amount of Sh69,568,960 could not be confirmed as a review of the procurement file and bid documents revealed that as of the time of the audit in October 2024, the contract period had lapsed and there was no evidence of an approval for an extension of the contract, and the performance bond expired on 2 July 2024 with no evidence of renewal,” Gathungu said in her report.

During the groundbreaking ceremony, governor Sakaja said the market would ease congestion and improve trading conditions.

“The market will serve the people of Mutuini and the residents around Dagoretti, and it will put an end to the residents’ grievances, which have been going on for the past four years under the previous regime,” Sakaja stated.

City Hall had outlined plans to modernize markets, ensuring they had enough space to eliminate shanties and reduce the risk of fires caused by illegal electricity connections.

Mutuini market was the first of 10 markets the county government planned to build by 2027 to address the shortage of trading spaces in Nairobi.

The Mutuini market was fully funded by the county government, while some other markets would be built in collaboration with the national government.

Once completed, the market was expected to accommodate 500 traders and serve as both a wholesale and retail hub.
However, with the project now stalled and audit findings questioning the value of the Sh69.5 million already spent, concerns have emerged over whether the county will complete the market as planned.

With 42 markets across the county, still traders do not fit in all of them as they are many are forced to operate on roadsides and streets within the Central Business District.