MPs raise the red flag over KeNHA's Sh86 billion pending bills

A House team has raised the red flag over the operations of the Kenya National Highway Authority (KeNHA) following revelations that it is collapsing under the weight of Sh86 billion in pending bills owed to contractors.

The National Assembly Public Investment Committee on Energy and Commercial affairs was appalled after learning that the pending billions had accrued a penalty of Sh5 billion in interest.

The committee which was reviewing the audited accounts of KeNHA for the financial years 2020/2021 and 2021/2022 further established that the agency had Sh13 billion in contingent liabilities arising from court cases.

KeNHA Director General Kung’u Ndung’u was put to task to explain the developments.

“The reason for your increased pending bills is because you are spending what you don’t have. What is the hurry in doing some of these works and the bills pend?” Posed committee Vice Chair Lilian Gogo.

The Rangwe MP further sought to know why the agency had not put in place mechanisms to tame pending bills.

Wajir West MP Farah Yusuf expressed concern over the contractors plight saying some have had their property auctioned or taken their own lives due to financial stress.

On the issue of contingent liabilities, Committee chair David Pkosing said that the agency had been sued and risks losing Sh13 billion.

“What cases are these that could amount to Sh13 billion?” Posed chair.

 Pkosing directed that KeNHA to furnish the committee with a list of all the cases.

Committee Vice Chair Gogo wondered whether the contingent liabilities were a scheme by some unscrupulous contractors to siphon public money.

“We know that there are some who claim payment for works not done and their claims are non-existent. We will need to go and see some of these projects even as we verify the cases in court,” she said.

Laikipia East MP Mwangi Kiunjuri demanded the list of the cases saying that it would help the House team know which one are yet to be concluded and whether alternative dispute resolution mechanisms  could be pursued.

The KeNHA boss requested for 14 days to submit the list of cases.

“We request that you give us two weeks to avail the documents through the office of the Auditor General as it will require some compilation,” said Ndung’u.

On the issue of pending Bills, the DG submitted that delayed funding from the parent Ministry and the National Treasury had led to an increase in unpaid for projects.

At the same time, the committee also found that KeNHA’s cash balances included Sh128,989,967 stashed in dormant bank accounts tied to completed road projects. The agency, however, confirmed that six dormant accounts had been closed, though one account related to an ongoing project remains active.

Ndungu urged the committee to help the agency secure the much-needed funds to ensure timely completion of projects and avoid pending bills.

"Roads bring development, and development follows roads. It is crucial that Kenya invests in a robust road network, just as our neighboring countries are doing," he said.

Consequently, the committee has now summoned National Treasury Cabinet Secretary John Mbadi and his Roads and Transport counterpart Davis Chirchir to appear before it in two weeks’ time to explain what the roads agency was struggling with the outstanding payments.

“…We need to understand why these pending bills exist…in some cases it is not the fault of the Director-General or his team, but a political issue," stated Pkosing, further noting that MPs sometimes request additional road projects when the president visits their regions, further compounding the agency’s woes.