Auditor General Nancy Gathungu has revealed that billions of shillings have been lost by Kenyan taxpayers due to the fines paid for lack of utilizing funds meant for government projects.
Speaking before the National Assembly Budget and Appropriations Committee on Tuesday, May 27, Gathungu said there is widespread corruption in government, with different ministries using known avenues to waste public funds.
The Auditor General revealed that over the past four years, Kenyans have lost a whopping Ksh6.6 billion, money that was not budgeted for.
“Between the financial year 2020/2021 and financial year 2023/2024, the government paid commitment fees totaling Ksh6.569 billion on undrawn amounts in respect of loan signed between the government of Kenya and foreign lenders,” she said.
“2023-24 projects which had total project allocations of Ksh515.11 billion, had not utilised Ksh304.4 billion.”
Nancy Gathungu reveals billions lost
As per the Auditor General, the nation lost Ksh1.6 billion in the 2023/2024 financial year, by not spending funds meant for projects while in the 2022/2023 financial year, Ksh1.4 billion was released from the National Treasury.
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Some of the projects that have stalled despite donors providing funds include the Kapchorwa-Swam-Kitale-Eldoret Road which was scheduled for completion last year.
The contractor has lodged a claim of Ksh318.6 million in respect to interest charges caused by delays in the implementation of the project by the employer.
The Mandera-Ramu-Gari-Kobo-Kotulo-Tarbaj-Wajir-Samatar-Modogashe-Isiolo highway which was initiated in 2015 has seen an expenditure of only Ksh16 million.
Also among the flagged projects is the Mombasa Bridge project, which the donor provided Ksh49 billion in 2019 but only 2% of the funds were spent.
Gathungu also told the committee that the Hustler Fund loans are full of questions, adding that there is a high level of negligence in the fund.
Auditor General report reveals billions incurred on late payments interest
The Auditor General had in her 2023/2024 financial year report revealed that the State Department for Medical Services has accrued interest of Ksh930.59 million for the Covid-19 Health Emergency Response due to the delay in the settlement of accounts for the supply of Covid-19 vaccines.
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The report also disclosed that the Kenya Water Security and Climate Resilient Project (IDA) for the State Department for Irrigation had accrued interest on late payments totaling Ksh70 million while the Coastal Regional Water Security and Climate Resilience Project under the State Department for Irrigation was charged interest of Ksh178.6 million due to delays in the payment to the contractor on certified works.
At the same time, the report revealed that the Ksh21 billion Kibwezi-Mtomo-Kitui-Migwani Project under the Kenya National Highways Authority (KeNHA), which was financed by Exim Bank, has attracted interests of Ksh614.2 million arising from delayed payments to the contractor for the upgrading of the said road.
The road was constructed by Sinohydro Corporation of China and traverses Makueni and Kitui counties.
The Kenya Nairobi Western Bypass project has been charged interest of Ksh4.6 million due to delayed payment for construction of roads and acquisition of land.
Also, the delays of payment for Sirare Corridor Accessibility and Road Safety Improvement Project along the Isebania-Kisii-Ahero has attracted interests of Ksh657 million after two construction companies charged interest on delayed payments of Ksh331.1 million and Ksh325.89 million.
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