KURA Under Fire for Alleged Overpayment in Unfinished Road Projects

NAIROBI, Kenya, Nov 28 – The Kenya Urban Roads Authority (KURA) is facing scrutiny over claims of misappropriation of funds following reports that a contractor received an overpayment for incomplete road and bridge projects.

The National Assembly’s Public Investments Committee on Transport and Infrastructure, led by Pokot South MP David Pkosing, is investigating an alleged Sh687 million overpayment to Cementers Construction Company for projects initially budgeted at Sh892 million.

Unfinished Projects and Disputed Payments

According to documents presented to the committee, the contractor has completed only half of the work awarded in the 2018/2019 financial year. The contract included the rehabilitation of Shreeji Road, construction of walkways and drains, and expansion of bridges over the rail line on Likoni Road and the river on Enterprise Road.

“Someone must explain why this contractor was overpaid. How was Sh687 million paid when so much work remains unfinished? There are clear irregularities here,” said Pkosing.

Reports from the Auditor General reveal that, as of February 2023, significant parts of the project—including the Likoni and Enterprise Road bridges—were still incomplete. Furthermore, the contractor had not submitted design drawings for the Enterprise Road bridge, while only earthworks had been completed on Shreeji Road.

The audit raised concerns about the revised completion deadline of April 8, 2023, suggesting the delays undermined the value-for-money principle.

Contractor Proposes Termination

KURA Director General Silas Kinoti informed the committee that the contractor is seeking to terminate the agreement due to unforeseen challenges.

Kinoti cited a change in scope by the Kenya Railways Corporation (KRC), which altered lane width specifications from 5.1 meters to 7 meters, as a key factor in the delays. Additionally, the contractor claimed inflation since 2018 had significantly increased material costs, making it difficult to complete the project within the original budget.

“The project stalled in 2021 due to these issues, and the contractor now wants a mutual termination of the agreement,” Kinoti explained.

MPs Demand Accountability

Lawmakers expressed concern over the overpayment and the abandonment of the project. Kiambu Town MP John Machua questioned why the contractor would seek termination when much of the work was allegedly completed.

Aldai MP Marianne Kitany stressed the urgency of resolving the matter, citing severe traffic congestion caused by the unfinished works along Likoni and Enterprise Roads.

“These delays are worsening traffic issues in the area. KURA, KRC, and the contractor must provide clear explanations for the setbacks,” Kitany stated.

Further Investigations Ordered

The committee has tasked the Auditor General with preparing a detailed report to determine whether taxpayers received value for their money.

“All relevant documents, including the contractor’s CR-12 form, must be submitted for review. Accountability is crucial, and no party—including the contractor—should escape scrutiny,” Pkosing emphasized.

As the investigation continues, the committee plans additional hearings with KURA, KRC, and the contractor to address the stalemate and push for the completion of the stalled infrastructure projects.