Kura under scrutiny for paying Sh687m for incomplete projects

Kenya Urban Roads Authority (Kura) is in the crosshairs of Members of Parliament amid allegations that it misappropriated funds through the over-payment of a contractor for works not done.

The National Assembly Public Investment Committee on Energy and Commercial Affairs on Friday launched investigations on whether there was collusion between Kura and an Asian firm contracted for the construction of a bridge and access roads for Sh892 million during the 2018/2019 financial year.

According to documents tabled before the committee, the roads agency paid Cementers Construction Company Sh687 million, despite 50 per cent of the work sum in the contract not being completed. “…An explanation is needed on why this contractor was overpaid. We want to know how the firm was paid Sh687 million for the work done so far. There seems to be some shrewdness at play,” said committee chair David Pkosing.

“Bridges haven’t been done and almost all the money has been paid. A substantial amount of work has not been done. In the contract the amount of money remaining is Sh205 million, even if the bridges were to be completed, this money is not enough,” he added.

The documents further show that the scope of the contract included the rehabilitation and upgrading of the single carriageway of Shreeji Road, the construction of walkways and drains, the expansion of an existing bridge over rail on Likoni Road and a river bridge on Enterprise Road. The firm was also contracted to construct concrete drains, pipe culverts, and drainage works on both Likoni Road and Enterprise Road.

But according to an audit conducted in February by the office of the Auditor General revealed that the Likoni and Enterprise Road bridge was incomplete with the contractor having failed to submit design drawings. The Shreeji Road was also incomplete with only the earthworks done so far. “In the circumstances, it’s unlikely that the project will be completed by the revised completion date of April 8, 2023, thus impacting adversely on realisation for the value for money,” read a report by the Auditor General.

Kura Director General Silas Kinoti told the watchdog committee the fate of the projects was now uncertain given that the contracted firm had been pushing for a termination of the contract despite the works not being complete. Kinoti explained that a move by the Kenya Railways Corporation (KRC) to move from the initial agreement of the contract signed occasioned the delays.

He also noted that the Asian firm had been seeking a termination of the contract arguing that with the increase in the bill of quantities since 2018 due to inflation would be impossible to complete the scope of work with the contract sum.

“The construction project stalled in 2021 and the correspondences that we have, showed that KRC changed their initial agreement on the metres of construction of the lanes from 5.1 metres to seven metres,” he explained.

Pkosing consequently directed the office of the Auditor General to ascertain whether there was value for money in undertaking of the projects given that the works were not completed. “You (KURA) should submit the CR-12 of this contractor to the Auditor General. We will need all the parties there, that contractor included. He is not off the hook. If we apportion blame that contractor should be visible,” he directed.

Aldai MP Marianne Kitany observed that the delayed completion of the three infrastructure projects has exacerbated the already strained traffic conditions along Likoni-Enterprise Road pushing for the need for accountability from the agencies involved in these projects.