Vihiga industrial park project stalls despite Sh52m payment

Despite more than Sh52 million being paid for the construction of the Vihiga County Aggregation and Industrial Park, there has been minimal progress, an audit report has revealed.

Cup pressure peaks as Shabana host Kenya Police in blockbuster quarter-final Football

Upper Hill coach Walgwe unperturbed despite drawing giants in Prescott Cup group phase Rugby

The Department of Commerce, Tourism and Co-operatives awarded the contract at a cost of Sh496 million, according to the Auditor General’s report for the year ended June 30, 2025. The project was expected to be completed within nine months from September 2023.

However, an inspection carried out in June 2025 found the project stalled. The contractor was not active on site, and there was no evidence of ongoing works.

The audit noted that foundations for another warehouse were filling up due to prolonged inactivity. It also found no documented communication from the project management team addressing the contractor’s non-performance, despite delays against agreed timelines.

Although three payment certificates totalling Sh52,038,575 were processed and paid between December 2023 and April 2025, construction remained behind schedule.

The inspection showed the steel framework had only been erected on two warehouses, with partial walling completed on two walls. Foundations for two other warehouses were complete but were awaiting framework installation.

Concerns were also raised over the contractor’s performance bond, which was updated in March 2025 and is valid until 2027. Its authenticity had not initially been confirmed by county management.

The Auditor General concluded that value for money in the project could not be verified.

In response to the Senate County Public Accounts Committee, county management acknowledged the audit observations. It said concerns over delays had been repeatedly raised during site meetings with the contractor and documented in official minutes.

The contractor issued an early warning notice in April 2024, citing reasons for the delays, and later applied for an extension of time, which was approved.

The county further said the authenticity of the performance bond had since been verified by the DCI through Star Discover Insurance Company.

Management defended the payments, insisting all disbursements were based on measured and certified work. It said no advances were issued and that payments strictly reflected the level of implementation on site.

INSTANT ANALYSIS

An audit has revealed that more than Sh52 million was paid to a contractor for the Vihiga County Aggregation and Industrial Park despite minimal progress on the ground. The Sh496 million project, awarded in September 2023 and expected to be completed within nine months, shows limited construction, with only partial steel framework and walling completed on two warehouses. The audit questioned value for money and flagged weaknesses in performance monitoring and contract oversight. County management acknowledged the delays but defended the payments, citing certified works and an approved extension of time. The findings highlight persistent challenges in project supervision, accountability and timely delivery of public infrastructure in Vihiga.