Ministry in a spot over Sh1b project

The Ministry of Transport and Infrastructure has been put into sharp focus over a Sh1 billion project funded by the World Bank.

According to the report by Kenya National Audit Office (KENAO) the audit trail for the Kenya Municipal Programme queries expenditure of Sh959,956,863 which is part of a Sh12.1 billion grant by the World Bank meant to improve living conditions in urban areas.

The expenditure is not supported by LPOs, invoices or contracts. Interestingly, the World Bank has given the project a clean bill of health on its website.

“An amount of Sh96,014,825 was incurred towards the purchase of goods and services. The breakdown per component was training Sh65,206,829, other operating expenses Sh30,807,996. However, Sh50,571,476.8 which translates to 52.67 per cent cannot be supported,” says the audit. It further says, “An amount of Sh1,739,027,515 was incurred toward the acquisition on non-financial assets. The breakdown per component was, construction of civil works Sh1,417,747,718, design and supervision Sh321,279,797. However, an amount of Sh959,956,863.26 which translates to 55 per cent cannot be supported.”

The Kenya Municipal Programme was expected to create livable cities with improved urban planning and development, financial management and delivery of services at the national and local levels.

It is also supposed to address infrastructure constraints, promote economic growth and reduce inequality in Mombasa, Nairobi, Nakuru, Kisumu and Eldoret.  

Part of the money the Ministry failed to account for includes Sh24 million meant for training and Sh26 million for operations. A further Sh696 million was spent on unsupported works, Sh283 million on unsupported consultancy while the ministry is yet to account for Sh959 million.

Former Housing and Urban Department Principal Secretary Idah Munano said the audit queries had been raised in an interim report and her department had been cleared by KENAO. “Nothing is conflicting. It is the process. Someone may have leaked interim reports and it is very malicious,” she said.

“During the auditing process there are all kinds of people maybe someone was upset. You could be having documents but you are having interim reports,” she said.

The PS further said that the audit began in October 2017 and had continued with many drafts released to her department although they were not final.

“What you have is an incomplete draft document. It is a document we had in the interim meeting. At one time and after they said we did not have this and that we sat with them for two weeks and we now have a certificate,” the former PS said.

The KMP was restructured, and extended by 21 months to fully realise the objectives of the project after the initial flow start at the beginning.

The World Bank in its initial report had said most of the KMP’s planned works contracts were under implementation. According to the World Bank, the project is already protecting 200,000 residents of Mombasa from periodic flooding.

“Some 25km of drainage systems have been completed, 27km of roads have been rehabilitated, 25km of foot and cycle paths have been built, and 395 street and high mast security lights have been installed and are operating,” says the World Bank in its assessment.

The Bank estimates that some 900,000 urban residents are benefiting from the improved infrastructure, of which 50 pe rcent are female. Most of the KMP’s planned civil works contracts, to which 80 per cent of project funds are allocated, are completed or are in advanced stages of completion. These works cover urban infrastructure—drainage systems, foot and cycle paths, roads, bus parks, markets, and street lights—in nine urban centres.