Billions wasted on stalled Government projects, audit reveals

A report by the Auditor General has revealed the staggering loss of taxpayers' money through stalled and delayed government projects.

The Auditor General's findings highlight inefficiency, mismanagement, and potential corruption across various government departments, leading to billions of shillings being sunk into ventures that have either stalled indefinitely or delivered no results.

In the 2024 financial year alone, a shocking Sh7.6 billion was poured into projects that remain incomplete, even years after their planned completion dates.

These projects are now either sitting abandoned or have failed to provide any meaningful benefits.

The Auditor General, Nancy Gathungu, emphasized the wasted cost, describing it as "sunk costs" with no development achieved, further distorting the government's development expenditure.

The Ministry of Defence tops the list of the most egregious offenders, with Sh3.1 billion spent on unfinished infrastructure projects.

This amount could have been used to build numerous schools or equip health centers, yet it remains a symbol of wasted resources.

Similarly, the State Department for Medical Services has expended Sh1.4 billion on stalled initiatives, including a Paediatric Emergency Centre and Burns Management Unit that remain incomplete, along with a Sh283 million Kisii Cancer Centre that has not materialized.

The Health Department also faces the possibility of losing Sh32 million paid for a medical gas plant that has yet to be delivered.

In addition, 16 equalization fund projects remain unfinished, their value undetermined, further compounding the problem of unaccounted-for public funds.

"There is no value for money on public funds spent on the stalled and delayed projects, as no services are being provided by these projects," Gathungu said.

This failure to complete essential projects is leaving critical services, including healthcare, education, and infrastructure, in jeopardy, while taxpayers continue to bear the financial burden.

Smaller projects also reveal the same pattern of neglect.

The State Department for Labour spent Sh244 million on a National Employment Promotion Centre that has not come to fruition, while Sh95 million was lost in the stalled Occupational Safety and Health Institute.

The State Department for Public Works, responsible for building county headquarters, has failed to deliver on Sh2 billion worth of projects in Tharaka Nithi, Nyandarua, Isiolo, and Tana River counties.

The Housing Department, too, has come under scrutiny for allocating Sh5.2 million for markets in Kasarani and Gigiri that were never built.

Similarly, the Teachers Service Commission spent Sh122 million for offices in Machakos and Kilifi, yet no money was disbursed and no offices were delivered.

Gathungu also pointed to other troubling instances where project delays have led to penalties due to late payment of completion certificates, and some projects have been revised to amounts higher than their original contract sum, leading to cost escalations.

"Payments have been made to projects which appear to have completely stalled, casting doubt on value for money for such expenditure," the Auditor General noted.

Notable projects still hanging in limbo include the delayed parliamentary studies center, which has absorbed Sh934 million, and the science and technology parks at Dedan Kimathi University.

The Public Service Commission also wasted Sh67 million on an unfinished management system.

The stalled Africities Convention Centre project in Kisumu County and the Internal Security Department's Sh833 million allocation for unfinished projects are also under investigation.