Controller of budget Dr. Margaret Nyakang'o speaking during the National Tax convention at Maa hotel and suites, Nairobi on November 27, 2025./LEAH MUKANGAI
A seeming deep-seated dispute with contractors, protracted court battles and chronic cash crunches are stalling development projects across counties.
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The end result is billions of shillings of public funds locked in unfinished projects
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Details contained in the latest County Governments Budget Implementation Review Report by Controller of Budget Margaret Nyakang’o show that dozens of projects—some initiated at the onset of devolution—have stalled.
This is despite counties paying contractors up to 90 per cent of the contract sums, in some cases.
The report paints a grim picture of “white elephant” projects spread across the country, where public resources continue to sink into idle sites while essential services remain undelivered.
In many instances, counties and contractors are locked in bitter disputes over alleged non-payment, breach of contract and project variations.
Counties accuse contractors of abandoning sites, while contractors counter-accuse devolved units of failing to honour payment schedules.
In other cases, counties are battling lawsuits filed by contractors whose contracts were terminated or by firms that lost out during procurement.
Some devolved units also cite lack of funds, delayed exchequer disbursements, and failure by the National Treasury to release conditional grants as key reasons for stalled works.
The CoB further notes that political transitions have worsened the situation, with some county administrations deliberately abandoning projects initiated by their predecessors.
Insecurity in parts of the country and weak due diligence during procurement—resulting in engagement of contractors without adequate technical or financial capacity—have compounded the problem.
Machakos county is among the hardest hit.
The report shows that 54 development projects valued at Sh1.13 billion have stalled, even though Sh314.26 million has already been paid to contractors. Only six of the stalled projects have so far been revived.
“The first three projects were initiated before devolution; therefore, the contract or procurement files cannot be traced and no estimated value is available for these projects,” the report shows.
Among the stalled works are the construction of Machawood offices at Machawood Studios in Mikuyu/Vota Village (Sh39.74 million), a commercial mixed-use development comprising two 50-metre blocks with a walkway boulevard between them (Sh55.49 million), and a 12-storey office block valued at Sh394.99 million.
The county blamed contractor non-performance and abandonment of sites.
In Baringo county, Nyakang’o identified 16 stalled development projects valued at Sh217.44 million, of which Sh126.84 million has already been paid.
“The county reported 16 stalled development projects as of September 30, 2025,” the report notes, adding that some contractors had abandoned sites and stopped responding to communication, while others had their contracts terminated due to delayed completion.
Low funding was also cited.
Stalled projects in Baringo include the construction of ATC Guest House (Sh19 million), a youth empowerment centre in Marigat (Sh13 million) and proposed civil works and water supply at Kabarnet (Sh23.7 million).
In Elgeyo-Marakwet, two projects worth Sh98.74 million have stalled, despite Sh60.79 million already being paid.
These are the construction of Kamariny Stadium (Sh46 million) and the governor’s residence (Sh52.73 million).
However, the report notes that the national government has since taken over Kamariny Stadium, with a contractor currently on site.
Garissa county reported four stalled projects valued at Sh283.54 million, of which Sh38.65 million has been paid.
These include the construction of county health headquarters (Sh46.56 million), which stalled after disputes over variations; the construction and equipping of a cancer centre (Sh222.28 million); a dispensary block at Gedilun Sangailu (Sh5.6 million); and a maternity ward in Bura (Sh9.01 million).
Contractors reportedly deserted the sites.
A balance of Sh228.69 million is required to complete the project.
Kericho county has 20 stalled development projects valued at Sh321 million, with Sh95.3 million already paid.
These include Kiboybei Water Supply in Kapsoit (Sh36.73 million), Kaboloin water project in lower Kapsaos (Sh5.25 million) and Solait water project (Sh103.54 million).
In Kiambu, the construction of the county assembly chambers valued at Sh40 million has stalled. “The first certificate has not been paid due to lack of exchequer disbursement,” the CoB notes.
Kisii county reported two stalled county assembly projects valued at Sh29.40 million, with Sh11.28 million already paid.
They include construction of ward offices at Bogiakumu (Sh7.35 million) and similar projects at Ibeno, Boikanga and Boochi (Sh22.05 million).
Contractors were terminated for reasons the county did not clearly explain.
Laikipia county reported four stalled projects valued at Sh5.44 million, of which Sh1.11 million has been paid.
These include the installation of flood lights in several centres in Ngobit ward and the relocation of modern kiosks at Ngaren Giro Market in Segera ward. Delays by contractors were cited.
Samburu county has two stalled projects valued at Sh204.54 million, with Sh168.23 million already paid.
These include the construction of an inpatient block at Samburu County Teaching and Referral Hospital in Maralal (Sh107.79 million) and the governor’s official residence (Sh27.14 million).
The county is locked in a standoff with contractors over variations to the scope of work.
In Tharaka Nithi, projects worth Sh689.34 million have stalled, with Sh105.89 million already paid.
The key project is the upgrading of Tunyai–Nthaara road to bitumen standard in Chiakariga. The county cited a lack of funding.
Trans Nzoia county’s Sh874 million Kitale Business Centre project in Matis ward has stalled due to a court case, despite Sh794.52 million already being paid to the contractor.
Turkana county reported 19 stalled development projects valued at Sh268.90 million, of which Sh106.04 million has been paid.
The county did not provide reasons for the delays.
Among them is the construction of houses for managers, deputy managers, plant operators and technical staff at Naotin in Kanamkemer ward, valued at Sh14.89 million.
INSTANT ANALYSIS
Overall, the CoB warns that unless counties strengthen procurement due diligence, improve cash-flow planning, resolve disputes promptly and insulate development priorities from political transitions, stalled projects will continue to drain public resources—denying citizens the benefits devolution was meant to deliver.
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