Gathungu report: Multi-billion military projects stalled as funds run dry

Three major Kenya Defence Forces (KDF) projects, valued at nearly Sh22 billion, have been left unfinished due to financial constraints, leaving contractors unpaid and progress halted.

The projects, which were launched between November 2021 and June 2022 during former President Uhuru Kenyatta’s administration, have missed their completion deadlines.

A report from Auditor-General Nancy Gathungu shows that although contractors were to receive Sh21.9 billion, only Sh3.16 billion has been paid.

As a result, two projects stopped at just 20 percent completion, while another was abandoned at 60 percent.

"Review of the Ministry’s projects progress reports and project implementation status reports indicate that three projects, initiated between November 2021 and June 2022 with cumulative contract amounts of Sh21,946,793,240 and cumulative certified works and payments of Sh3,167,246,076 as at June 30, 2024, had stalled," Gathungu stated in the report.

Among the affected projects is the Sh18 billion Level 6 Forces Research and Referral Hospital in Kabete, meant to provide specialized healthcare for security personnel and the public.

The facility, which was launched on August 31, 2021, was expected to be completed by January 2024 but remains far from finished.

“This Level 6 hospital will cater for the needs of all men and women working in our security agencies.

It is indeed a proud day for our country, for our security agencies given that this is the first project of this magnitude that has been done since the Armed Forces Memorial Hospital was done in the early 1970s,” Uhuru had said during the launch.

Another stalled project is the Permanent Camp for the 8 Brigade Headquarters and Mechanised Infantry Battalion, which was supposed to be completed by August 2023 at Sh2.8 billion.

The contract was signed in December 2021, but only Sh175 million has been paid, halting construction at 20 percent.

The 23 Mechanised Infantry Battalion in Marsabit is among those affected by the delays.

A 4.2-kilometer road project that began in June 2022 and was scheduled for completion in December 2022 also remains unfinished.

Although the contractor received Sh90.19 million, work stopped at 60 percent completion, with Sh147.98 million still unpaid. The report does not indicate the exact location of the road.

An inspection by the Auditor-General between October and December 2024 confirmed that work had ceased and contractors had abandoned the sites.

"Management did not disclose measures and strategies put in place to revive and complete the stalled projects," Gathungu noted.

She also pointed out that there was no proof that contractors had renewed their performance bonds, raising accountability concerns over the Sh3.16 billion already spent.