The Kenya National Highways Authority (KENHA) which wants major roads put under tolling, even after being built on loans and grants, gobbled a whopping Sh55.9 million on its’ board expenses.
This amount included Sh7.4 mn spent on former Roads Cabinet Secretary Kipchumba Murkomen upto June 30, 2023.
This development alarmed the Auditor General Dr Nancy Gathungu who observed thus, “… no plausible explanation was provided why the State Department for Transport functions were being funded from the Authority and charged to Board expenses while the State Department has a travel and subsistence allowance vote”.
The Auditor General in her report ending June 2023 also observes that KENHA has no land ownership documents for its’ 120 stations countrywide. Its for this reason that Dr Gathungu doubted the accuracy of KENHA’s assets valued at Sh726.6 billion.
Contingent liabilities
The liabilities of Sh22.1 billion in respect of contingent liabilities relating to court cases against the
Authority, unclaimed interest on works, land acquisitions, unresolved contractual claims,
estimated legal fees and interest awards – equally alarmed the auditor.
KENHA also breached the law by overshooting the expenditures by Sh3.9 billion beyond the budgeted Sh36.3 billion. “management was in breach of the law and effective use of public resources could not be confirmed’, the Auditor General affirmed
Outstanding Refunds
KENHA has been sitting on refunds for its’ customers dating as far as 2010. “The refundable deposits from customers balance
of Sh228.9 which includes, long outstanding balances totalling Sh58.1 dating back to 2010/2011 financial year. No plausible explanation was given why the deposits had not been surrendered to the Consolidated Fund as provided by Regulation 106 of the Public Finance Management (National Government) Regulations, 2015 that states that unless otherwise exempted by
an Act of Parliament, any deposit which has remained unclaimed for 5 years may, with the approval of the Cabinet Secretary, be paid into Consolidated Fund and thereafter the Accountant-General may refund the deposit to any person entitled thereto, if he or she is
satisfied that the claim is authentic. In the circumstances, Management was in breach of the regulations”, said the Auditor General
Anomalies on tenders
(a) Construction of Dhogoye Bridge and Approach Roads on Kisian-UsengeOsieko
The Authority awarded a contract No.KeNHA /RD/HP&D/RP 3287/2021 to two companies in a joint venture at a contract sum of Kshs.1,999,349,505 for a period of 18 months effective 21 June, 2021. However, review of the monthly progress report of June, 2023
revealed that the contractors have achieved only 21% overall works completion compared to time elapsed of 24%, an indication that works were behind schedule. Further, records reviewed revealed that only one certificate of Kshs.83,862,151.83 had been raised and
part payment of Kshs.74,478,949 or 89% had been paid.
(b) Mau Mau Road Lot II
The contract was awarded to a Company at a contract sum of Kshs.4,519,821,279 for 36 months from 20 February, 2020 but was revised to 47 months. Mau Mau Road Lot III was implemented in Nyeri County. A letter Ref: KeNHA/08/CV812/2023 dated 10 May, 2023 from Director General to the contractor revealed that the contractor was awarded extension of time for a further period of three hundred and thirty-seven (337) days. However, physical inspection carried out in the month of July, 2023 revealed that the
amount certified to date (up to IPC 12) which had been fully settled was an amount of Kshs.1,775,574,791 and stood at 39.28% of the contract sum.
The inspection revealed that spur roads works were at the initial stages and behind schedule despite the revised completion date of 18 February, 2024. Further, the main road drainage banks had not been reinforced by stone pitching and loose soil on the drainage sides were falling down inside the drainage channels on several sections of the road. Delayed maintenance/repair works may result to further deterioration of the defects attracting huge repair costs.
