Shame of stalled projects sinking taxpayers' billions

A new report has laid bare a shocking trail of abandoned and delayed government projects, sinking billions of taxpayers’ money into ventures that have either stalled indefinitely or delivered no tangible benefits.

Auditor General Nancy Gathungu has exposed a disturbing pattern of inefficiency, mismanagement, and possible corruption.

During the 2024 financial year, at least Sh7.6 billion of taxpayers’ money was sunk into the projects that remain incomplete, years after their intended completion dates. 

As per the highlight of 24 projects, billions more are at risk as the delays are yet to be mitigated upon and the costs have continued to balloon.

“The amount spent is a sunk cost as no development has been achieved from the stalled or incomplete projects. The costs incurred further distort expenditures incurred on development votes,” Gathungu said.

The Ministry of Defence leads in the shameful tally, having already spent Sh3.1 billion on stalled infrastructure projects, money which is enough to build dozens of schools or equip hundreds of health centers.

Also frozen in incomplete buildings and abandoned sites is Sh1.4 billion that was expended by the State Department for Medical Services.

The department poured Sh1.1 billion into a Paediatric Emergency Centre and Burns Management Unit that remains unfinished, alongside a Sh283 million Kisii Cancer Centre that exists only on paper.

The health department also risks losing Sh32 million that was paid for a medical gas plant which is yet to be delivered by the contractor. 

Some 16 equalisation fund projects of undetermined value also remain incomplete.

“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.

Taxpayers bear the burden of these sunk costs, while essential services such as healthcare, education and infrastructure suffer.

Even smaller projects reveal the same pattern of negligence.

The State Department for Labour spent Sh244 million on a National Employment Promotion Centre that is yet to materialise, while Sh95 million vanished into the stalled Occupational Safety and Health Institute.

The State Department for Public Works, tasked with building county headquarters, is yet to deliver Sh2 billion projects for Tharaka Nithi, Nyandarua, Isiolo and Tana River counties.

Also on the spot is the State Department for Housing which paid Sh5.2 million for markets in Kasarani and Gigiri that were never built.

Teachers Service Commission allocated Sh122 million for offices in Machakos and Kilifi, with zero disbursed and zero delivered.

Gathungu raised concerns that some of the projects are attracting penalties due to delays in the payment of completion certificates of milestones achieved.

Others have been revised to amounts higher than the 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 said.

The auditor also cited the delayed completion of the parliamentary studies centre, which has drained Sh934 million, as well as the science and technology parks at Dedan Kimathi University.

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

The Housing Department threw away Sh5.2 million on markets that were never built in Kasarani and Gigiri.

Also flagged is the stalled proposed Africities Convention Centre project in Kisumu county, while Internal Security department is on the spot over Sh833 million sunk in various development projects.